Banks put family violence perpetrators on notice. Stop using accounts to commit abuse or risk being 'debanked'
It happened when she was shopping for groceries with her kids, or refuelling the car.
- It happened when she was shopping for groceries with her kids, or refuelling the car.
- That’s when she would discover her partner had cancelled the card or lowered the limit so she couldn’t buy essentials.
- Ella* (not her real name) is one of about 1.6 million Australian women and 745,000 men who have experienced economic or financial abuse.
The highly disruptive tactics used by abusers
- Perpetrators use a range of tactics, some of which are inadvertently enabled by bank products and services.
- However, it may be possible to eliminate or reduce the need for these interventions with improved product design to prevent and disrupt abusers.
Taking action against perpetrators
- It outlines steps banks can take to prevent their products being used as a weapon in domestic and family violence.
- In banking, this means spelling out the bank’s rules and its expectations of customer behaviour in its terms and conditions.
- These rules are the foundation of the contractual relationship with the customer and are relied on where there is a dispute.
Banks taking the lead
- They will be the first Australian banks to signal to millions of bank customers they have a choice: abuse other customers and potentially lose access to their bank account, or behave with respect.
- Implementation will be complex and the banks will need to proceed with caution.
Consequences for abusers who fail to stop
- In this instance, there is the option of “de-banking” the customer which is not only a major inconvenience but also denies them access to an essential service.
- It is instructive to examine the collective approach the banks have already taken to disrupt technology-facilitated abuse through payment descriptions.
- It could also be informed by the Council of Financial Regulators’ de-banking policy recommendations on transparency and fairness measures.
Getting the public on board
- Airlines make it clear jokes about terrorism are not okay, and patrons are ejected from sporting events for violence.
- The widespread adoption of financial abuse terms and conditions and broad public communication will send a strong message to everyone with a bank account that financial abuse is unacceptable and has consequences.