Financial abuse is a distressing issue that can have devastating effects, particularly for the most vulnerable members of our society. If you or someone you care about is facing financial concerns related to the misuse of a Lasting Power of Attorney (LPA) or Court of Protection Deputyship order or other financial pressures, understanding the warning signs is the first step toward protection.
We’re here to help you navigate your next steps
We understand that these situations can be emotionally overwhelming and confusing. That’s why we’re here to help.
Anyone can become a victim of financial abuse – whether they have the capacity to manage their finances or not.
If you’ve found yourself a victim of financial abuse or know someone who may be a victim of financial abuse, mismanagement of financial resources, or are concerned about the misuse of a Lasting Power of Attorney, don’t suffer in silence. Our team offers compassionate support, expert advice, and practical solutions to ensure your financial security and peace of mind. Whether you need assistance with challenging the actions of an attorney or a deputy, applying to the Court of Protection, or simply want confidential advice about your concerns, we are here to guide you every step of the way.
Contact us today to take the first step toward addressing your concerns and protecting your financial future.
Financial abuse is preventable—and help is possible. Don’t wait to reach out.
Financial abuse is a form of exploitation that can take many forms. It refers to any action that involves the misuse of finances for personal gain, often at the expense of a vulnerable person.
Common examples include:
- Taking money without permission, for instance, theft from a purse or property, misuse of bank accounts or taking more money than is authorised from a cash point, or over-claiming benefits
- Transferring or selling property without appropriate permission or a satisfactory explanation
- Overcharging for services, such as gardening or repairs
- Forging signatures on documents, such as wills or cheques
- Coercing someone into financial agreements, such as forcing them to apply for credit in their name, selling their property/ or shares at below market rate or giving an interest free loan Misusing an LPA, such as mixing funds, borrowing money without permission, or making unreasonable gifts
Unfortunately, financial abuse can occur in families, within caregiving situations, or by other individuals such as carers, attorneys or court appointed deputies who are trusted with a position of authority. It often targets vulnerable individuals, including those who are elderly, disabled, or suffering from ill-health.
Financial abuse can happen to anyone, but certain groups are more vulnerable including:
- The elderly: physical or mental frailty can make individuals more susceptible
- Those with a disability or illness: a reduced ability to manage finances makes them a target
Financial abuse can be committed by someone who has been given the formal authority to manage someone else’s finances (for instance, by way of an LPA or a Deputyship Order) or by family members or friends acting on an informal basis. The impact on the vulnerable person can be equally devastating.
Financial abuse often has subtle warning signs that should not be ignored. These may include:
- Unexplained or unusual bank transactions, such as cash withdrawals or transfers
- Bills that are unpaid, even though finances should allow timely payments
- Sudden changes in relationships, such as a new friendship with someone closely connected to finances
- A new name added to a bank account, without any clear explanation
- Increased anxiety or a loss of confidence, especially in financial matters
- Suspicious spending patterns or concerns about money that come out of nowhere
- Unexpected changes to a will
- Contact with others being controlled or restricted
If you notice these or other red flags, it’s important to act—but with care.
If these situations apply to you and you are able to take action, you should consider taking the following steps.
Step 1: Understand your rights and the role of your attorney
A Property and Affairs LPA is a legal document that allows someone of your choice to make decisions on your behalf. Unless there is a specific restriction in the LPA, your attorney can start managing your financial affairs as soon as the LPA is registered with the Office of the Public Guardian. They do not have to wait until you lose mental capacity to make decisions on your behalf. This could involve managing your bank accounts, selling your property, or handling legal matters. However, misuse of this power—whether through fraud, coercion, or negligence—can leave victims vulnerable to financial exploitation.
Key Facts to Remember: An attorney under an LPA must abide by the Mental Capacity Act 2005 and its associated Code of Practice and act solely in your best interests. They should consult you when making decisions and are not allowed to mix their personal finances with yours or take advantage of their position for personal gain.
If you suspect the misuse of your LPA, you should consider whether your attorney should continue managing your finances.
Step 2: Revoke your Property and Affairs LPA and make a new one
If you no longer trust your attorney, provided you still have the relevant capacity, you can revoke the registered LPA and make a new one. Once the LPA is revoked and cancelled, your attorney will no longer have access to and control over your finances and assets.
Step 3: Prevent further abuse from taking place
If financial abuse has resulted in misappropriated funds, property, or possessions, the following steps can help you regain control:
1. Contact your bank or financial institution
- If you believe funds have been misappropriated through bank transactions, contact your bank immediately.
- Provide them with details about suspicious transactions and request that they investigate the activity.
- Many banks can reverse unauthorised transactions if flagged early.
2. Report the abuse to relevant authorities
Financial abuse can be reported to the following organisations to initiate an investigation and depending on the evidence uncovered, the investigations can lead to legal action being taken by them:
- The Office of the Public Guardian (OPG): They oversee attorneys and deputies and can investigate the mismanagement of finances by registered attorneys.
- Adult Social Care Services: Under section 42(b) of the Care Act 2014, local authorities have a duty to investigate where an adult in their area is at risk of or is experiencing financial abuse.
- The Police: Under section 4 of the Fraud Act 2006, the police can take actions in serious cases of abuse involving someone who occupies a position in which they are expected to safeguard the financial interests of another person.
Step 4: Take legal action against the perpetrator
If, after concluding their investigations, the financial institutions or other relevant authorities are not able to assist you with recovering your assets, you can take legal action against your attorney(s) and it is advisable to:
1. Gather evidence
Before taking action, ensure you have as much evidence as possible to support your claim:
- Bank statements showing unauthorised transactions
- Property deeds, transfer agreements, or financial documents
- Communication records, such as emails or messages, related to the financial abuse
2. Contact a Solicitor with expertise in financial abuse
Financial abuse cases are complex, and having expert legal support can make all the difference. A solicitor can:
- Help you gather and organise relevant evidence
- Liaise with law enforcement or the other authorities to gather further evidence on your behalf
- Advise you on your prospects of successfully recovering your stolen or misappropriated assets.
Step 5: Seek support and guidance
Financial abuse can leave victims feeling isolated, ashamed, or overwhelmed. You are not alone, and help is available.
Reach out to professionals or organisations that can provide emotional and practical support:
- Financial Advisors or Solicitors with experience in financial abuse cases
- Support groups for victims of financial exploitation or elder financial abuse
- Counselling services, to address any emotional trauma or distress
Taking the first step to reclaim your financial control and security can feel daunting—but support and expert guidance can make the journey much easier.
If you are not the direct victim of financial abuse but have concerns that someone who may no longer have capacity is being abused by their attorney or deputy, you can take the following steps.
Step 1: Speak to the person you are concerned about
It may be that the person you are concerned about still has the capacity to make certain financial decisions and their attorney is acting on their instructions. It is therefore advisable to speak to them first to check that they are aware of and agree with their attorney’s actions. This is important since when carrying out their investigations, the Office of the Public Guardian is likely to send a special visitor to establish whether the vulnerable person has capacity; was consulted by their attorney; and approved their actions.
Step 2: Speak to the attorney or deputy
If you feel that the vulnerable person no longer has the capacity to make financial decisions, express your concerns directly with the attorney or deputy. Although attorneys and deputies are bound by a duty of confidentiality, they may be able to offer some information or a satisfactory explanation to clear your suspicions.
Step 3: Report your concerns to the relevant authorities
The following organisations have a duty to investigate suspected financial abuse and may even take legal action to safeguard the vulnerable person in some circumstances:
The Office of the Public Guardian (OPG): They supervise registered attorneys and deputies and can investigate the mismanagement of finances.
Adult Social Care Services: Under section 42(b) of the Care Act 2014, local authorities have a duty to investigate where an adult in their area is at risk of or is experiencing financial abuse.
The Police: Under section 4 of the Fraud Act 2006, the police can take actions in serious cases of abuse involving someone who occupies a position in which they are expected to safeguard the financial interests of another person.
Step 4: Make an application to the Court of Protection
Investigations carried out by the above authorities may take a considerable length of time. If you have sufficient evidence that there is an immediate risk to a vulnerable person, consider making an application to the Court of Protection to:
- suspend the LPA or the deputyship order whist investigations are ongoing
- cancel the LPA or the deputyship order and seek the appointment of a new deputy
- call in the security bond in cases where a deputy’s action has caused a financial loss to the vulnerable person
- seek permission for the new deputy to commence court proceedings against the previous attorney or deputy to recover assets
Applying to the Court of Protection can be a complex legal process, so consulting with a legal professional is highly recommended.
Take action today
If you or someone you know has been the victim of financial abuse, the path to recovery and justice begins with understanding your rights, gathering evidence, and seeking professional guidance. Whether through the Court of Protection, the police, or other legal channels, you have options to regain assets, end the abuse, and prevent further harm.
Don’t wait. If you have concerns or are unsure about the next steps, contact us today. Our compassionate, experienced legal team can help you navigate the legal system, protect your financial rights, and bring the abuse to light.
You have the power to regain control. Take that first step today.
