Financial abuse is a form of domestic violence

We must do a better job of identifying warning signs, Laurie Campbell says.

One of the more distressing social narratives today is gender-based violence. This is a topic, both in the media and our social dialogue, that shines a sometimes intrusive and unwanted light on emotional, physical and psychological abuse. However, there is another plot to this twisted story; one that is buried deep within the subterranean fissures of society, while at the same time right under our very noses — partner financial abuse.

A new report brings this topic to the forefront of our collective consciousness. Hidden in the Everyday was released by The Woman Abuse Council of Toronto (Womanact) as part of its Financial Abuse as a Form of Intimate Partner Violence Project funded by the City of Toronto.

The research, led by The Research Facility for Women’s Health and Wellbeing at the University of Guelph and Womanact, is merely the tip of the iceberg, and needs to be a focus not just in terms of social policy, gender and accessibility issues, but also in financial literacy.

The report outlines that like other forms of violence against women, financial abuse is used as a tactic for harm and control, making it increasingly difficult for women to leave abusive relationships. It can involve stealing money, restricting access to household income and benefits — even when it’s the victim’s own money — and demanding to know how money is spent. It can also encompass withholding financial information

(the most common form of financial control) and building up debt in a partner’s name while not making any payments (also known as coerced debt), ruining the partner’s credit in the process.

What really hit home for me was that most survivors reported the financially controlling behaviours happened first and led to other forms of abuse. This strongly suggests we need to do a better job at identifying such abuse and its warning signs. But this can be difficult because traditionally, men handled all aspects of a household’s finances while women were shut out of the conversation entirely; this setup allows the offending tactics to be more easily concealed.

One major fallout of financial abuse is coerced debt and bad credit, which affects a victim’s ability to access safe housing and credit products that can help them move forward. Some of the women in the study had to turn to loans, credit cards or emergency funds. Other survivors resorted to bankruptcy. Through focus groups, a survey of service providers, as well as survivor interviews, the report uncovers many hidden levers of financial power.

Have we been viewing financial literacy through rose-tinted glasses? I regularly talk to media members and finance industry professionals about the importance of financial education. My conversations can run the gamut of teaching kids about money, guiding newcomers and their finances or supporting seniors with how to manage retirement.

While these topics are undoubtedly important, we can’t sidestep this ugly and uncomfortable part of money. The interaction of these two narratives — money and abuse — shouldn’t be suppressed or ignored.

I remember during my university studies hearing the quote, “the unspoken word never does harm” by Lajos Kossuth, a freedom fighter and Hungarian statesman. I remember it because I completely disagree.

This doesn’t mean we’re asking financial abuse survivors to shout their stories from the rooftops. Instead, it means increasing public awareness about what financial abuse is, how it can manifest and how people can get help.

Credit Canada’s upcoming Credit Education Week is an annual campaign aimed at helping Canadians reach their financial goals. In an effort to help support financial abuse survivors, Credit Canada has struck partnerships with women’s shelters and programs to provide free, confidential counselling sessions. These sessions allow victims to consult with professionals on how to best deal with coerced debt and regain financial control.

Womanact’s research is unprecedented but has only scratched the surface. Financial abuse as a form of intimate partner violence is real and it happens irrespective of a person’s income level. We need to continue the conversation.