Victims of economic abuse will soon find it easier to manage their debts, as 25 banks and building societies have committed to using a newly introduced document designed to simplify the process, as reported by The Guardian.
The Economic Abuse Evidence Form (EAEF) allows money and debt advisers, trained by specialist charities such as Money Advice Plus (MAP) and Surviving Economic Abuse (SEA), to inform creditors that an individual has experienced economic abuse and explain the impact on their financial situation.
Many victims, who typically owe money to at least five creditors, have previously been forced to repeatedly share their traumatic experiences with each creditor. This form is intended to ease that emotional burden by reducing the need for victims to retell their stories multiple times.
According to SEA, 5.5 million people in the UK experienced economic abuse last year. Perpetrators, often controlling partners or ex-partners, manipulate their victims’ finances, leaving many struggling with debt. Recent cases reported by the Guardian and Observer have highlighted women left with unaffordable mortgages after their abusive partners left, and their challenges in obtaining assistance from banks.
For victims like Susan Perasan, whose ex-husband left her with £58,370 of debt across 27 creditors, the introduction of this form could have been life-changing. She said:
“I had to fill out 27 different forms, explaining why I was in this situation and why I couldn’t pay them back. It was humiliating and exhausting.”
Perasan’s financial difficulties were overwhelming, with repayments equalling a second mortgage, in addition to childcare costs. She reflects on how a simple solution like the EAEF would have alleviated some of the stress:
“If I’d had just one form to send to everyone, some of them might have even written the debt off. It would’ve made such a difference when we were struggling.”
The EAEF contains a summary of the abusive relationship, including details about the perpetrator and the timeframe over which the abuse occurred. It also outlines how the abuse affected the victim’s financial control, along with any relevant supporting evidence the adviser has reviewed. Perasan, who finished paying off her debts in 2017, says it was a huge relief.
However, she continues to work two jobs to address longstanding issues with her home that she couldn’t afford to fix while paying her creditors. She stresses that forms like the EAEF are vital not only for financial relief but also for helping victims realise the abuse wasn’t their fault.
Currently, 25 major financial institutions, including Lloyds Banking Group, NatWest, and Santander, have agreed to accept the form. Perasan believes this is a great start but hopes more creditors will get involved.
A pilot program for the EAEF demonstrated its effectiveness, reducing the need for additional information requests. Only 15% of cases supported by the form required further follow-up, compared to 35% when the form wasn’t used. The head of vulnerability policy at the banking trade body 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.”
