Tesco Bank - What are they entitled to know?

zorz

In the past Tesco Bank agreed to a reduced payment which I have maintained uninterrupted for over a year.

The other day, I received a letter from them requesting a financial statement - which I have no problem supplying - but are they entitled (?) to the know the following or just being overly nosey:

• Partner's Income
• Any bonuses due or savings
• List of all creditors with outstanding balances and payments
• Mobile number and email address
• Detailed Reasons (medical certificate) for financial difficulties

I would like to know how other members have responded to similar letters.

Thank you.

HappyMJ

zorz wrote: »

In the past Tesco Bank agreed to a reduced payment which I have maintained uninterrupted for over a year.

The other day, I received a letter from them requesting a financial statement - which I have no problem supplying - but are they entitled (?) to the know the following or just being overly nosey:

• Partner's Income
• Any bonuses due or savings
• List of all creditors with outstanding balances and payments
• Mobile number and email address
• Detailed Reasons (medical certificate) for financial difficulties

I would like to know how other members have responded to similar letters.

Thank you.

You don't have to give your partners income but if your partners income is less than yours then your share of the household bills is higher so you have less to offer a creditor. If it isn't then I'd just say you are responsible for half of the household bills and leave it at that. You should put your partners contribution to the household bills rather than your partners actual income and that figure should equal 50% of the household bills but not cover any of your personal bills such as your mobile phone and any expenses you have which do not benefit the household.

Bonuses due only if they are guaranteed which they rarely are and only if you haven't included the figure in your income already. Savings I wouldn't answer that. Savings turn into capital the day you get your next income payment. Most people spend or at least allocate the majority if their income before they get their next pay and therefore have little or no savings. Payments you make into another account to cover an annual bill in the future may not count as savings. You've allocated that money to a bill so I wouldn't mention it. If you figure out all your annual bills come to £2,400 and put £200 into an account each month to cover those bills then to me you've spent that money even though the balance might be around £1,000 by now.

Listing all your creditors shows them that the payment you are offering each creditor is fair. i.e total outstanding debt £5,000. Spare income £100 so you offer 2% of each outstanding balance to each creditor.

Mobile number and email address - NO. Contact in writing only.

If you have a medical reason why you can't work then yes I'd write a letter showing some sort of proof why you can't earn as much as you did previously but you do not have to.

k3lvc

But presumably the lower the level of detail/openness the more potential there is for Tesco to change the terms of their 'agreement' and default the loan ?

sourcrates

Hi,
In answer to your question OP, they are not entitled to know anything whatsoever about your personal details, or your partners, period.
It is entirely up to you how much or how little information you choose to share with them.

poppasmurf_bewdley

You don't have to provide them with anything. But there again, that also holds good for them, and they don't have to agree anything to help you either.

sourcrates

I`m not a fan of been chummy with creditors.
They are not your friends, and have no interest in you at all.
All they want is to recover as much money as possible from you, if they are unhappy with any arrangement you have made with them, they simply sell on the debt.

The same scenario then applies to the DCA that picks up your debt, you tell them what you can afford, and then pay it, getting into protracted letter tennis with DCA`s is pointless, they either accept your payment, or they don't, if they don't like it, they sell it on again.

My experience has taught me the less you tell these companies, the better, as selling information is big business, and I for one, wont play there little game, for example, you give them a mobile number, you start getting cold calls and texts, you tell them your partners income, you start getting bombarded with mail shots for walk in bathrooms, and caravans etc, the list is endless.
The problem is not what information you give them, its what they then do with that information that bugs me.

JeffreyR

Agree with the posts here. The more information you give them the better they understand your situation etc It looks like they may be asking for this information to help them figure out how likely you are to keep paying.

zorz

Thank you for all the useful replies.

andyfromotley

i absolutely would not be telling them my partners income!!!