Trust evaporates when financial abuse is discovered

As a loving and caring parent, David* wanted to help his son, Mark*, when he found himself without anywhere to live. The situation soon changed when David found himself in dire financial circumstances as a result.

It began when David agreed that Mark could move in on the condition that he would make regular payments to cover the power bill and help pay for food. David also gave Mark authority on his energy provider account so that Mark could pay the power bills.

Initially, it appeared that the arrangement was working, however, after a short period of time David’s energy provider issued him with a disconnection notice because the power bill was a huge $1400 in arrears. David’s financial situation was bleak.

David’s daughter, Amanda*, was very worried and knew that something needed to be done to help protect David and also make sure his power would not be disconnected.

Subsequently David was referred to our Family Works Financial Mentoring service, where he met financial mentor, Claire*.

“We started by having a conversation with David to identify how best we could help him,” says Claire.

“As a pensioner, David has a limited income so the first thing we did was make contact with his energy supplier and make arrangements for his power not to be disconnected. We then discovered that not only had there been financial abuse from Mark, but David was also experiencing emotional and physical abuse.”

Mark had not only avoided paying the power account, he had also purchased other items and charged these to the energy provider’s account.

“Once we had helped with the immediate problems, we were able to put in place a plan that would help David with his longer term financial needs.”

Those long terms needs included helping him to apply for $500 through the Dunedin City Council Community Electricity Fund and, because of the fraud on his energy provider account, have all his fees reversed.

Claire applied to have an investigation into the authority that Mark had for accessing David’s energy provider account.

Thanks to our intervention, David’s situation is now improving. He has a new energy provider account, and his son no longer has access to this account.

A recent New Zealand study of ageing showed 10% of over 65s living in our communities experience abuse, often from family members.

The support and assistance of our Financial Mentoring service cannot be underestimated and has made a huge impact for people like David.

Claire says, “David’s power bills are now up-to-date, his energy provider account is secure, he has a working budget that ensures he can meet all his commitments and he is safe in his own home.” Claire has also been instrumental in establishing other community supports.

* Names and images changed to protect privacy

We have supported 1,065 people through our Financial Mentoring service over the last 10 months
(1 July 2023 - 30 April 2024)

Financial Mentoring can help:
-  Better understand budgeting, debt, financial products, loans and other money topics
-  Work out a budget plan that is right for you
-  Plan so you reduce any ongoing cycles of debt
-  Be supported and empowered to negotiate reduced payments or generate additional financial resources.

For more information please see financial mentoring webpage or call 0508 396 678.

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