Paying back a debt that has been caused by an abuser is not only unfair but it can also cause financial hardship. By working with a qualified money adviser, you may be able to find a solution. 

Some people decide to explain to their lender that they have experienced economic abuse and ask them to write off the debt the abuser coerced them into. The decision about whether to write off a debt is up to the lender. They are not required to write off any money owed to them because of economic abuse.

However, in some cases, a lender may decide to write off a debt in full. This would mean that no further payments are due. In other cases, they may choose to write off part of the debt or not to write off the debt at all. In these cases, you would still be responsible for paying back the debt. However, there are other debt solutions that may be help. You can find out about other possible solutions to coerced debt on our website here.

There are no set rules about when a debt can be written off, but some lenders are writing off coerced debts on a case-by-case basis. Their decision may depend on your circumstances, including the type of debt you have.

The lender’s decision will also depend on their own policies. Many lender’s policies are guided by industry recommendations. In 2023, the Financial Conduct Authority introduced the Consumer Duty, which sets higher standards for banks and building societies by requiring them to support customers to achieve good outcomes. UK Finance’s 2021 Financial Abuse Code outlines how they should respond to financial abuse and suggests that firms provide support for customers who are in debt. It also advises them to be flexible so they can help customers experiencing abuse. This Code is a guide and does not mean that a lender has to write off a debt. 

While not good practice, some lenders may take into account your financial situation when deciding whether to write off a debt. In this case, the lender may ask to see evidence of the money you receive and money you spend each month as well as whether you own things, such as a house or car, or have savings. They may be less likely to write off a debt if you have money left over to pay it.

Asking for a debt write-off is not the right option for everyone. A qualified money adviser can advise you about whether asking for a debt write-off is the best option in your circumstances.

It is important to let your money adviser know all the details of your situation. This includes as much information as you can about all the debts in your name. They can help you request a copy of your credit report, which will show all credit agreements in your name (including any that the abuser may have taken out without your knowledge). With this information, your qualified money adviser can let you know about the options available to you.

We have details of some organisations you may wish to contact to find a qualified money adviser on our website here.

Mental health

If you have had mental health difficulties, you can speak to a qualified money adviser about asking your creditor to write-off your debt on these grounds.

If coerced debt is affecting your mental health, a qualified money adviser may suggest using the Debt and Mental Health Evidence Form to support you. This form can be completed by health and social care professionals to confirm that the debt is affecting your mental health. It can help lenders understand your situation and the support you may need.

You can find out more information about the Debt and Mental Health Evidence Form on Money Advice Trust’s website here.

If you have debts, it is important to seek advice from a qualified money adviser. Some money advisers are specialists who have been trained to work with victim-survivors of domestic abuse.

If you cannot access support from a specialist debt and money advice organisation, you can still ask a generalist money adviser to support you to ask for a debt write-off. They can help you write to your lender to explain your situation so they can make a decision.

In your letter, you may wish to include:

Details of your situation

Your money adviser can support you to explain the abuse you have experienced. You could explain how this has impacted you, including how it has affected you financially.

How the debt built up

You may wish to give information about how the abuser forced you into debt. This could include saying whether the abuser threatened you to make you take out a credit agreement or if this was done without your knowledge. The abuser may have limited access to your income so you couldn’t afford to repay your mortgage or left you relying on credit cards to pay for essentials.

Proof of your situation

While not good practice, some creditors may ask you to provide evidence of what has happened to you. You may therefore decide to include evidence such as a letter from your GP or other health or social care professional, a letter from any domestic abuse service who is supporting you, or crime report numbers or copies of injunctions.

Remember that asking a lender for a debt write-off is successful in some cases and not in others. Even if you include all this information, the lender may not write off the debt.

If you get a response from the lender, it is important to discuss this with your money adviser. They can advise you about the next steps.

There are a number of ways in which a lender may respond.

Refusing to write off the debt

If the lender has not explained why they will not write off the debt, you may wish to reply to ask them. Your money adviser can support you to do this.

Offering to write off the debt

In some cases, the lender may decide to write off all the debt. Check your letters with a money adviser to be sure that this is what the lender is offering. It is important to keep any letters confirming that the lender has agreed to write off the debt. The lender may also decide to only write off part of the debt. In this case, you would still be responsible for paying back the rest of the debt.

Agreeing not to pursue the debt

The lender may agree not chase you for the debt. This does not mean that the debt is written off. Money is still owed and the debt may still appear on your credit file, however, the lender will not charge you interest or fees or chase you for repayment. If you receive a letter that says you will not be pursued for the debt, show this to your money adviser. They can explain what this means for you and suggest next steps.

Not replying

If the lender does not reply, this does not mean that the debt is written off. They could get back in touch with you to ask you to pay the debt at any time.

Whatever the lender’s response, it is important to:

• keep a copy of any letters you send to lenders and replies that you receive
• ask the lender to respond in writing
• make a note of the details if you are not happy with the lender’s response.

This may be helpful if you later decide to complain. We have more information below on how to complain to the Financial Ombudsman Service.

If you think your lender has been unfair or irresponsible when lending to you, there are steps you can take.

If you are not happy with your lender’s response and have received a final response letter, you can contact the Financial Ombudsman Service (FOS) to make a complaint about the lender.

You can find out how to complain to your lender and make a complaint about them to the Financial Ombudsman Service on their website here.

If a lender does not agree to write off a debt, or if this is not the right option for you, you can discuss other debt solutions with a qualified money adviser.

You may also be able to challenge the liability for the debt. This means getting an agreement from the lender that you are not responsible for paying it back if the lender has not acted properly in some way.

You can find out more about other possible solutions to coerced debt, like a debt management plan, on our website here.