Economic Abuse and Coerced Debt: What It Is and Where to Get Help

Section 1 of the Domestic Abuse Act 2021 (which applies in England and Wales) defines "domestic abuse". Behaviour is domestic abuse if the two people are each aged 16 or over and are personally connected, and the behaviour is abusive. Behaviour is "abusive" if it consists of any of: physical or sexual abuse; violent or threatening behaviour; controlling or coercive behaviour; economic abuse; or psychological, emotional or other abuse. The section says it "does not matter whether the behaviour consists of a single incident or a course of conduct".

Section 1(4) says: "'Economic abuse' means any behaviour that has a substantial adverse effect on B's ability to (a) acquire, use or maintain money or other property, or (b) obtain goods or services."

Under section 1(5), behaviour can be "towards" you even though it is conduct directed at someone else, for example your child.

Under section 2, two people are personally connected if they are or have been married or civil partners; have agreed to marry or enter a civil partnership; are or have been in an intimate personal relationship; each have, or have had, a parental relationship with the same child; or are relatives.

Two points are worth knowing. First, section 1 says it defines domestic abuse "for the purposes of this Act". It is a definition and does not itself create an offence. Second, the separate criminal offence of controlling or coercive behaviour (section 76 of the Serious Crime Act 2015) has its own tests. CPS guidance on that offence lists "economic abuse including coerced debt, controlling spending/bank accounts/investments/mortgages/benefit payments" and "taking wages, benefits or allowances" as examples of behaviour that can be part of it. See our guide to coercive control and the section 76 offence.

Orders from the family court, such as non-molestation orders, are made under a different law (Part IV of the Family Law Act 1996, which refers to "molesting" a person who is "associated" with the respondent). See Domestic Abuse Legal Protection and how to get a non-molestation order.

The charity Surviving Economic Abuse (SEA) describes economic abuse as controlling a partner or ex-partner's money and finances, and the things that money can buy. It lists behaviours that include an abuser who:

• prevents you from being in education or employment, limits your working hours, or takes your pay;
• refuses to let you claim benefits, or refuses to let you access a bank account;
• controls when and how money is spent, makes you ask for money or provide an allowance, or makes you justify every purchase;
• controls the use of property, such as a mobile phone or car;
• insists that savings or the house are in their name, or keeps financial information secret;
• steals your money or property, or refuses to contribute to household costs;
• misuses money in joint bank accounts;
• insists that bills, credit cards and loans are in your name and makes you pay them, or builds up debt in your name, sometimes without your knowledge.

SEA says economic abuse rarely happens in isolation and usually occurs alongside other forms of abuse, and that it can continue after the relationship ends. SEA is a charity; its information is not legal advice, and it is not the same as the legal definition above.

Only take these steps if it is safe to do so. If you still live with, or are in contact with, the person, contacting lenders or changing accounts may alert them. Consider speaking to a domestic abuse service or a debt adviser first.

SEA says "coerced debt" is when an abusive partner or ex-partner forces you to take on debt when you do not want to. It says an abuser may have:

• forced you, threatened you, or made you feel too scared to say no to taking on the debt;
• given you incorrect information that affected your decision to take on the debt;
• taken on the debt in your name without you knowing about it; or
• stolen money so you had no choice but to borrow money to pay for essentials.

Examples SEA gives include being made to take out a credit card or loan, a loan, mortgage or credit card taken out in your name, using your overdraft or other credit in your name, and putting bills such as car finance, mobile phone contracts or catalogue payments in your name.

Steps you can consider

1. Get your credit report. The Information Commissioner's Office (ICO) says you can ask any credit reference agency for the information held about your financial standing and that the request is free of charge. Look for the phrase "statutory report" on the agency's website. SEA names the three main agencies as Experian, Equifax and TransUnion, and says an abuser may have opened accounts you do not know about, so checking is important. SEA's guide also says that if you do not have the documents the agencies ask for, you can ask your local Citizens Advice or another registered debt advice agency to apply for the credit report on your behalf, and that it can be posted directly to the advice centre.
2. Get specialist money advice. SEA says a qualified money adviser can talk you through your options, and that the right option depends on your circumstances. SEA's website describes a specialist helpline offering advice to anyone experiencing domestic abuse who is in financial difficulty, run by Money Advice Plus (its page calls it the CEDEAS Helpline). Opening hours and how to call are on that page and may change, so check it before you call: SEA: CEDEAS helpline.
3. Ask about the Economic Abuse Evidence Form. SEA describes this as a form that a qualified money or debt adviser trained by Money Advice Plus and SEA can complete to tell a creditor that you have experienced economic abuse, so you do not have to repeat your story. SEA says the form "can currently only be completed and submitted by a qualified money/debt adviser trained in economic abuse by Surviving Economic Abuse and Money Advice Plus", that it is not currently training more advisers to use it, and that it is being rolled out to financial services firms in phases, so not every creditor will accept it yet.
4. Ask the lender about a write-off. SEA says the decision is up to the lender, who is "not required to write off any money owed". It says some lenders write off coerced debts case by case, and that if a lender does not write off the debt in full you would still be responsible for it, although other debt solutions may help. SEA also says you may be able to challenge the liability for the debt, which it describes as getting an agreement from the lender that you are not responsible for paying it back if the lender has not acted properly in some way, and it recommends getting legal advice before doing so. Your money adviser can help you write to the lender.
5. If a debt was opened in your name without your knowledge or consent. SEA says that if an abuser has built up debt in your name without your knowledge, "this is fraud" and fraud is illegal. SEA says you may decide to raise this with your lender directly and that the lender should provide appropriate support. You can report fraud to Report Fraud, which GOV.UK says to contact if you have lost money or been hacked because of an online scam or fraud and you are in England or Wales, or to the police. Experian says that if something on your report does not look right you should contact it; it will contact the company that provided the information to check, and will usually add a note that the entry is disputed. SEA's credit report guide says that if you point out the accounts that were opened without your consent, Experian will dispute them directly with the lenders, and that you can send supporting evidence such as court documents. A money adviser can help you with all of this.

If your credit report shows an entry you say is wrong, our guide to credit reference disputes explains how to challenge it.

Financial links

Experian explains that a "financial association" is someone you are linked to through joint finances or a joint credit account. You become financially associated if you open a joint bank account, apply for credit together such as a mortgage or loan, or get a joint County Court Judgment. Experian says that sharing an address with someone, or even being married to them without any joint credit, does not make them a financial associate, and that companies may check your associates' credit history when deciding whether to approve you.

Experian says that if you no longer share finances with an associate, you can ask it and the other credit reference agencies to remove the association, and that you should be prepared to provide proof that the financial connection has ended. It also says that if you have separated but still share a mortgage, it may be able to break the association if you have lived apart for more than six months and you have closed all other shared finances such as joint bank accounts. SEA's guide to your credit report goes through the steps and conditions in more detail, and says you need to contact all three agencies separately.

SEA's guide, which it produced with Experian, says that when you apply for new credit, a financial associate looking at the section of their Experian report that shows new applications will not see your new address, only the address where the link was set up, and it recommends checking the other agencies' policies yourself. Our guide to credit reference disputes also covers financial associations.

Joint accounts and your bank

SEA suggests that if it is safe to do so, you ask your bank or building society to note on your file that you are experiencing abuse, and says this means the bank should not disclose information to the abuser if they contact it, for example about a joint account or mortgage. It also suggests asking to speak to the team that supports vulnerable customers, and says that you will not be penalised or blacklisted for reporting abuse. These are SEA's descriptions of good practice, not rights that every firm must follow. SEA has a Banking Support Directory that lists what many banks and building societies say they offer: SEA Banking Support Directory.

SEA says that many banks have signed up to UK Finance's 2021 Financial Abuse Code, which guides how firms respond to customers who have experienced financial and economic abuse. SEA is clear that the Code is a guide and does not mean a lender has to write off a debt. This is SEA's description of the Code, so ask your bank directly what support it offers.

Notice of Correction

Experian explains that a Notice of Correction is a short statement you can use to add information to an entry on your credit report, for example to explain why you fell behind with repayments. Your statement must be no longer than 200 words and must not be defamatory, scandalous or unsuitable for publication, and Experian recommends not naming any specific organisation. Any lender checking your report will see it and should take it into account, but there is no guarantee it will change the outcome of an application. You need to contact the other main credit reference agencies as well. Experian says a Notice of Correction will not affect your credit score but may affect how quickly lenders deal with a new application. SEA also describes a password version of the notice, which lenders should check, asking you for the password when someone applies for credit in your name (this is not a guarantee), and says it is free to add with all the credit reference agencies. Think about whether the person could guess the password.

The Financial Ombudsman Service (FOS) investigates complaints about financial businesses such as banks, credit cards and loans. Its website explains the steps:

1. Complain to the business first, and tell it what has happened and how you would like it put right. Keep a record of calls, emails and events.
2. Wait for its response. For most complaints a business has up to 8 weeks to consider a complaint, but only 15 days for complaints about fraud and scams, payment services such as bank transfers and direct debits, and electronic money (the FCA's rules for payment services and electronic money complaints say 15 business days). The FOS says to let the business know as soon as you can if you are in a vulnerable position, for example if you are in financial difficulty.
3. Bring your complaint to the FOS if you are not happy with the final response, or the business has had the time it needs and you have not had a reply. You will usually need to make a complaint to the FOS within 6 months of the date on the final response, and after that it usually will not be able to help unless the delay is due to exceptional circumstances, the business did not send a valid final response, or the business agrees to the FOS being involved. The FOS says its service is free and you do not need to pay anyone to represent you.

There is also a time limit for complaining to the business in the first place. The FOS says you usually need to complain within 6 years of the problem happening, or within 3 years of becoming aware (or of when it would be reasonable to expect you to have realised) that you had cause to complain. It says it may also be able to consider a complaint if exceptional circumstances account for the delay. See the FOS page on time limits.

See our guide to the Financial Ombudsman Service for more detail.

If the problem is that a debt collector is pressuring you, see debt collection harassment.

SEA's guidance repeatedly says to take steps "if it is safe to do so". If you still live with the person, changing passwords, closing accounts or contacting lenders may alert them, so think about the timing and consider getting advice from a specialist domestic abuse service first.

• Specialist domestic abuse help: the helplines on this page, and our help if you are being abused page.
• Leaving: the Domestic Abuse Emergency Leaving Checklist.
• Protection: Domestic Abuse Legal Protection covers court orders, and the Clare's Law section explains how to ask police about a partner's history.
• Sharing property: if you were not married to the person, see cohabitation rights.