Financial abuse happens when someone is controlling with money and assets. It’s a serious problem that can happen to anyone at any age, regardless of your wealth, ethnic background, gender, age or ability.
It can manifest as economic control – like a carer denying a person access to their money, or a spouse making financial decisions for their partner without consulting them. Or it can be through financial exploitation, such as an independent adult child moving in with an elderly parent and not contributing to living costs.
Craig Day, Executive Manager of Technical Services at Colonial First State, cites an example where a financial adviser’s clients mentioned that their son had started a new business and wanted them to be guarantors for his business loan.
“This would have loaded up a huge level of debt on their house,” he said. “The adviser’s understanding of his clients’ son made him concerned that in around 12 months, they wouldn’t have a house anymore.”
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