Credit, Collections & Insolvency News
Victims of economic abuse should find it easier to get help dealing with their creditors, as 25 banks and building societies have committed to accepting the Economic Abuse Evidence Form (EAEF), which could ease applicants’ trauma and provide the support they need .
The new form, devised by Money Advice Plus (MAP), enables money and debt advisers trained by MAP and Surviving Economic Abuse to advise multiple organisations that someone has experienced economic abuse, and explain the impact on the victim (UK Finance). The pilot of the EAEF has seen faster decisions from financial services firms, fewer requests for additional information, and can save victim-survivors from having to repeat their story multiple times.
Last year, an estimated 5.5 million people in the UK experienced economic abuse, a form of domestic abuse, according to research by SEA. It involves a perpetrator controlling a partner or ex-partner’s money, finances, and the things money can buy, such as clothing, transport, food, and a place to live. In the EAEF, the advisor can explain the impact of the abuse on the victim-survivor, giving the lender the information needed to best support their customers.
On average, survivors hold debts with five different creditors, meaning they must contact them individually. This can be retraumatising for survivors as it forces them to relive the abuse they experienced. The pilot of the EAEF has seen faster decisions from financial services firms, fewer requests for additional information, and can save victim-survivors from having to repeat their story multiple times.
The announcement from UK Finance follows work with members, Surviving Economic Abuse and Money Advice Plus, as part of long-running work to support victim-survivors of economic abuse. This marks the completion of a key recommendation made by UK Finance in its May 2024 report: From Control to Financial Freedom.
Fiona Turner, Head of Vulnerability Policy at UK Finance, said “The journey to financial freedom for victim-survivors of economic abuse can be complex and challenging. Firms accepting the EAEF is positive progress that will simplify the process, reduce the risk of trauma associated with multiple notifications and enable the victim-survivors to access the support they need. But we know that more still needs to be done. This achievement is one step of many recommended in our recent report From Control to Financial Freedom, and we look forward to continuing our work in collaboration with government, regulators, our charity partners and the industry to help those impacted by economic abuse.”
Sam Smethers, Interim CEO of Surviving Economic Abuse, said “We’re delighted so many financial firms are committed to using the Economic Abuse Evidence Form and are grateful to UK Finance for the leadership they have given across the sector, driving real change. Perpetrators often coerce survivors into taking out credit or loans to rack up huge debts in their name, making it difficult for them to leave and rebuild their lives. The EAEF will simplify the process for survivors, reducing the need for them to relive the abuse and help them access the support they need from creditors more quickly and easily. Alongside Money Advice Plus, we look forward to building on this progress made by the sector and ensuring that all financial firms feel confident in supporting survivors of economic abuse.”
Karen Perrier, Chief Executive of Money Advice Plus, said “We have been supporting victim-survivors of economic abuse with debt advice through a lens of economic safety since 2011. We took our knowledge and learning and devised the EAEF to try and simplify what can be a complicated pathway. It is great to be working with UK Finance and supporting its members in accepting the EAEF. This will be a huge step forward, and we look forward to working with other sectors so they can support victim-survivors on their path to financial freedom.”