Can banks ask what you owe to other banks?

OneSpike

We've had a fairly constructive letter from Egg asking us to detail (among other things) "all other debts together with contractual payments required". Apart from the fact that the contractual payments are totally irrelevant as we can't meet them, can they ask us for that sort of information? We don't intend to give it at this stage anyway, but we will detail income and outgoings.

After the constructive point they go on to talk about Default Notices, debt recovery agencies etc. They also bang on about phoning them but we're well-trained DFWs and will be keeping it all in writing.

OneSpike

Al_Mac wrote:

They are trying to work out wether you are worth chasing

Oh I sussed that! I just wondered whether they were within their rights. The really galling thing is that I've managed to pay off a third of what I owe them already and it felt so good, and now it all falls flat on its face

CLAPTON

i think you are over reacting to this.

remember that you are presumably asking them to freeze interest and charges and accept lower payments than they are contractually entitled.

so its reasonable for them to want to:
a. assure themselves that you are a 'can't pay' rather than simply a 'won't pay'
b. that they are not being treated worse than other creditors i.e. you may be choosing to pay others the full amounts but not them.


so they would want you to demonstrate that your 'surplus' income is being fairly distributed between the various creditors. so its usual to show that you have prorataed the available funds by the debt size.

i know from your previous posts that your OH is very reluctant to discuss the details of the debts but remember that they dont have to freeze interest and in any event they have access to your credit records and there's also various 'debt' databases that have been set up as part of the various 'responsible lenders ' inititatives.

OneSpike

CLAPTON wrote:

i think you are over reacting to this.

remember that you are presumably asking them to freeze interest and charges and accept lower payments than they are contractually entitled.

so its reasonable for them to want to:
a. assure themselves that you are a 'can't pay' rather than simply a 'won't pay'
b. that they are not being treated worse than other creditors i.e. you may be choosing to pay others the full amounts but not them.


so they would want you to demonstrate that your 'surplus' income is being fairly distributed between the various creditors. so its usual to show that you have prorataed the available funds by the debt size.

i know from your previous posts that your OH is very reluctant to discuss the details of the debts but remember that they dont have to freeze interest and in any event they have access to your credit records and there's also various 'debt' databases that have been set up as part of the various 'responsible lenders ' inititatives.

Er, right. Thanks, I think. Not absolutely sure what it is I'm being accused of over-reacting to as I was only asking if they are within their rights to ask for this sort of information. Not sure I'm any clearer now than when I asked

davek1

They can ask. It's up to you to choose whether to tell them and how much you tell them.

Dave

Mike_St_Helens

OneSpike wrote:

We've had a fairly constructive letter from Egg asking us to detail (among other things) "all other debts together with contractual payments required". Apart from the fact that the contractual payments are totally irrelevant as we can't meet them, can they ask us for that sort of information? We don't intend to give it at this stage anyway, but we will detail income and outgoings.

After the constructive point they go on to talk about Default Notices, debt recovery agencies etc. They also bang on about phoning them but we're well-trained DFWs and will be keeping it all in writing.

They can simply do a 'silent' credit search (to which we all agree to on application) They can see from that....

OneSpike

And a Merry Christmas to you too! I thought they must have ways of finding out. We've told them what percentage of our overall debt is represented by our products with them and therefore what slice of our income they can have, from which they can work out the total :eek: figure we owe!