Lifestyle Report - am I legally required to answer?

Direct Legal Collections have written to me requesting I fill in a "Lifestyle Report", aka income & expenditure statement. I called them asking whether I was legally required to provide this information, as I didn't think I was. They said I am required by law to do so, I am sure this is wrong. They also say that Coventry Building Society, my former lender, have proven my debt - how, when they have not taken me to court for the shortfall. Am I being misled by DLC?

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