Senate inquiry to shine light on financial abuse

“This inquiry will look at just how common financial abuse is and the ability of banks to respond to it.”

The terms of reference of the inquiry have now been made public and the committee is ready to receive submissions between now and June 14.

The inquiry is expected to examine the effectiveness of existing laws and how they govern the ability of banks to deal with financial abuse, as well as potential areas for reform.Credit: iStock

“I invite as many people as possible – those with lived experience and the organisations and banks who are on the frontline – to submit evidence to the inquiry,” Mascarenhas said.

In March last year, the Australian Bureau of Statistics released a personal safety survey that looked at economic abuse as a separate category for the first time. It found that an estimated 16 per cent of Australian women have experienced economic abuse at the hands of a cohabiting partner.

The survey found economic abuse is experienced at similar levels to physical partner violence for women, and is slightly more prevalent than physical violence for male victims.

And the banks have already taken notice.

In November last year, NAB introduced “unacceptable account conduct” to the conditions on its savings and transaction accounts, which gives it the green light to cut customers off if they are found to be perpetrating financial abuse.

Concerns about financial abuse remain one of the top reasons customers get in touch with its customer support team, NAB head of customer vulnerability Michael Chambers said at the time.

“Financial abuse can take many forms, including where an individual is denied access to their own funds [or] has their funds misused by another individual. This form of control can occur between couples, family members or relationships where one person is providing care for another,” he says.

Last year’s annual report from the NSW Ageing and Disability Commission also reported on the emerging phenomenon of “inheritance impatience” driving financial abuse, including exploitation, misused power of attorney and theft.

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