Financial Abuse – Not just theft by strangers

For this factsheet the focus is financial abuse. When we hear the term ‘financial abuse’ we often think of someone stealing an older person’s savings.

However it could also be a relative or a carer spending the older person’s money on themselves when they’re doing that person’s shopping, or refusing to let them decide what to spend their money on, or telling the older person they deserve or need money from them, perhaps by making them feel they are a burden or by telling them a hard luck story about their own life.

Other stories include younger relatives moving into the older person’s home uninvited, or pressurising the person to sign their property over to them or to change their will.

Financial abuse is never acceptable, no matter how minor it may seem. You don’t have to put up with it, and there is help available for you to put a stop to it. Here are some ways to keep control over your money.

• Keep your Personal Identification Number (PIN) secret. If you give anyone your PIN, you won’t have any protection from the bank or building society if money is taken.

• If someone does your shopping for you, always write down what you asked them to buy and work out roughly how much it should cost. Don’t be embarrassed to ask them to give you receipts so you can keep a record of what has been bought and hold on to these for safe-keeping.

• Keep your old bank statements and bills. Check your bank balance regularly to ensure everything is as it should be. It’s possible to do this via the internet or most banks & building societies have a 24-hour telephone service that you can access using a security number.

• Make sure you’re included in all decisions about your money. Anyone helping you should discuss everything they do.

• If someone is helping you with online banking, keep your passwords and numbers hidden.

• Before signing a cheque, make sure the amount and details of who is to receive the payment have been completed and are correct. Never sign a blank cheque.

• Don’t keep large amounts of cash in your home, even if you think you’ve hidden it away safely. It’s always best to keep your money in a bank, building society or credit union account – most home insurance policies only cover you for a small amount of cash.

• It’s a good idea to have more than one person’s support with your finances, as this adds protection and will help prevent people from being dishonest. It also means that if one person is away or busy, you still have someone to rely on.

• Pay anyone shopping for you back by cheque so that you are not giving them access to your PIN.

• Keep control yourself by setting up standing orders or Direct Debits. Keep an eye on any Direct Debit payments as unlike standing orders, the company can change the amount it takes from your account (although it has to inform you).

• Use a pre-paid card – you can put money on the card using a local PayPoint, at Post Offices, online, by cheque or bank transfer. You may be able to ask for a second card with its own PIN, which you can give to someone to make purchases on your behalf. Using a pre-paid card means you can be in control of how much money you are giving the other person to spend for you.

• If you shop at certain shops frequently, consider buying gift vouchers or cards (online or over the phone) so that others can make purchases on your behalf.

• If you trust someone completely, you could add them to your bank account, creating a joint account, so they have access to your money. You should restrict the account so that it’s only used for cheques, and ask the bank to set up a ‘both mandate’ which means any cheques paid out of the account must be signed by both of you. Bear in mind that you’ll be liable if the other person causes the account to go overdrawn, which can affect your credit rating.

• Give someone permission to manage your bank account on your behalf. This is called a third party mandate. You may be able to limit what the person can do, for example, only allowing them to check your balance or withdraw a restricted amount of money.

• If you have difficulty using cash machines and card readers, don’t assume that your only choice is to stop using them. You can get a chip and signature card. When you go to the till at a shop and put your chip and signature card in the card reader, it will ask you for a signature rather than a PIN. If your bank or building society won’t let you have one, make a complaint.

• You can request bank statements in large print or other formats that are easier to read. PIN keypads in shops should have a raised locator bump on the number five to help you find the other numbers on the keypad.

• Telephone and internet (online) services allow you to do your banking and shopping at home, making them ideal if you find it hard to get out.

• Some people worry about paying with a debit or credit card over the internet, but it’s possible to shop safely online. However, you should look out for security features on the website before putting in your payment details.

• There may be occasions when a friend, relative or carer asks to borrow money from you. Never lend money that you may need yourself. Remember that circumstances can change and the person may not always be able to pay back what they have borrowed.

• You might be asked by someone to act as a guarantor for their rent payments, or credit repayments, such as a loan or credit card. Be cautious as this means you’re agreeing to cover their payments if they cannot do so; it’s a good idea to get advice before acting as guarantor.

• A power of attorney gives someone the right to make decisions about your finances or welfare. You should choose the person you want to be in control (your attorney) carefully and give them time to think about it, as the role involves a great deal of responsibility and power. An attorney can be a relative, friend, partner or a professional, such as a solicitor. Don’t let anyone persuade you to give them power of attorney if you’re not comfortable with the arrangement. An Ordinary Power of Attorney gives your attorney the right to make financial decisions on your behalf while you still have mental capacity (the ability to make and communicate decisions). A Lasting Power of Attorney (LPA) allows your attorney to make decisions for you after you’ve lost mental capacity. You can set up a Property & Financial Affairs LPA and/or a Personal Welfare LPA.

If you think someone is being dishonest with your money, or they are abusing you in other ways, you have the right to take action to stop it. Reporting the mistreatment may feel difficult, especially if the person abusing you is a close friend or relative, but bear in mind they have broken your trust and they are in the wrong, not you.

Organisation that can help	Phone number	Website
Action on Elder Abuse = charity working to 808 8141 protect & prevent the abuse of vulnerable older adults	080 8808 8141	www.elderabuse.org.uk/
Bucks Safeguarding Adults Board	0800 137 915	www.buckinghamshirepartnership.co.uk/ safeguarding-adults-board/
Disability Rights UK	0845 026 4748	www.disabilityrightsuk.org
Money Advice Service	0300 500 5000	www.moneyadviceservice.org.uk
Solicitors for the Elderly	0844 567 6173	www.solicitorsfortheelderly.com
Age UK Bucks	01296 431911	www.ageuk.org.uk/buckinghamshire/
Think Jessica = registered charity against illegal scams		www.thinkjessica.com/

This briefing is produced as part of the Ageing Well in Aylesbury Vale Project by AVDC’s Lynne Maddocks.

Contact on 01296 585364 or lmaddocks@aylesburyvaledc.gov.uk for more