Women turning to loan sharks as a result of ‘coerced debt’ – study

Women are being forced to turn to illegal money lenders as the result of what is described as a “hidden but devastating form of economic abuse”.

Scottish Women’s Aid has published a study on the problem of coerced debt – where an abusive partner or ex-partner build up debt in their victim’s name, either without consent or knowledge or through force, threat or coercion.

This research is said to be the “first focused insight into coerced debt in Scotland”.

And it revealed that a “small but significant” number of women were said to have been “pushed towards illegal money lenders, often due to extreme financial pressure”.

As it was published, Dr Jenn Glinski, author of the report and the national policy lead for economic abuse at Scottish Women’s Aid, said: “Coerced debt is trapping women and children in abuse across Scotland.

“This report makes clear that it is not a side issue, but a central part of how perpetrators exert control.”

The report, which was commissioned by the Scottish Illegal Money Lending Unit and Trading Standards Scotland, described coerced debt as being a “hidden but widespread form of economic abuse”.

It insisted such behaviour was “not rare or exceptional” but is instead a “common and deliberate tactic of coercive control used by perpetrators to trap women financially, restrict their choices and undermine their ability to leave or rebuild their lives”.

Claiming there is a current lack of effective support for women in this situation, the report said they were having to “adopt financial survival strategies to manage coerced debt” – such as: relying on family for financial assistance; going without essentials; selling possessions; taking on further debt; returning to their abusive partner; or engaging in unsafe or exploitative work.

Stressing that “what survivors need is not short-term fixes, but systemic change”, the report says there needs to be “understanding of economic abuse, recognition of coerced debt” and “survivor-centred debt relief”.

Scottish Women’s Aid said it wants to see a national campaign to raise understanding of economic abuse, financial abuse, and coerced debt.

In addition, it said that economic abuse must be formally recognised as domestic abuse by justice authorities, including Police Scotland, the Crown Office and Procurator Fiscal Service, and judges, advocates and solicitors.

And it suggested a Scottish coerced debt relief scheme be introduced to help victims which could “pause, reduce, or write off debts” owed to devolved public bodies, such as council tax arrears and rent arrears “where these have arisen from domestic abuse”.

Dr Glinski added: “What is most concerning is that our systems are too often complicit and compound financial harm instead of providing support and solutions.

“They hold survivors responsible for debts created through abuse while failing to hold perpetrators to account.”

She insisted: “Economic justice for survivors means believing women, preventing further harm and ensuring they are not left to carry the financial burden of abuse. The costs of inaction are simply too high.”

Maureen Chalmers, chair of Trading Standards Scotland, said: “This report highlights that illegal money lenders take advantage of people at their most vulnerable. It is vital that we act against illegal lenders who target women facing coerced debt and economic abuse.”

She advised: “Staff from the Illegal Money Lending team can provide support and advice to people impacted by loan sharks. This is done through the 24/7 confidential support line, 0800 074 0878 or by visiting stopillegallending.co.uk/.

“Staff can also help people to access local services, including debt advice services, credit unions, addiction counselling and local support groups.”

A Scottish Government spokesperson said: “The Scottish Government is committed to tackling violence against women and girls in all its forms and is supported by investment of £21.6m this year through the Delivering Equally Safe fund.

“In December 2025, we announced funding for the launch of a new national helpline, the Purple Phone, run by Financially Included to help women experiencing economic or financial abuse by their partner, and the Scottish Government has committed to support this work until March 2028.

“This is alongside support for women and their children to leave an abusive partner through the Fund to Leave initiative. £2m has been allocated to it in 2026-27, which could help up to 2,400 women in Scotland.”