Income & Expenditure Forms

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Why does everyone advise not completing an Income and Expenditure Form when the lender requests it? I can understand this when a person has surplus income over expenditure, but not when the person has no surplus income. I am currently involved with someone who is being pursued for a shortfall claim. The person is on a low wage and has no surplus income with which to pay the mortgage company. What are the downfalls therefore of letting the company be aware of this. Surely if they known that it isn't worth pursueing the shortfall as the person is unable to pay, it will be in the interest of all? I look forward to receiving any advice. Thankyou

-- (von6@uboot.com), April 02, 2002

Answers

By filling one in it is deemed acknowledgement of the debt as claimed by the Lender - the full amount, plus accruing interest and all charges. The I&E forms also ask for details of any assets, but more sneakily, bank details, credit card details etc, so that they can get their shortfall bumped to priority status. People naively fill them in, giving all their debts and outgoings in the mistaken belief that they cannot be chased for what they don't have. Not now maybe...but later on, oh yes. It also gives them a back-door avenue to details of people you live with and family addresses, which at some time or another you will have given to a credit application. In store credit cards are a real culprit with this one - they always ask for a "contact" name and address who doesn't live with you. Skip tracers can get full details of associated cardholders once you admit to another debt. My Dad, for example, guaranteed a loan when I was at University. My Lender started to harrass him at his address for my details, nearly 15 years later. It took me a while to follow their tricks, but this is what they did to me (and admitted it, including how they connected me and my Dad). Everyone creates a credit profile with their purchasing patterns and history, and a good debt collector will use that to find you and what you can really get your hands on,income wise. Thankfully, most of them who read this site would have problems finding their own shadows.

-- Too scared to say (iwasduped@yahoo.com), April 02, 2002.

thats a tad unfair

-- who knows (locate1st@hotmail.com), April 03, 2002.

I agree, it is an unfair statement by "iwasduped".

I think that the lenders, solicitors, debt recovery firms, skip tracers and private detectives, are much much worse than this.

Good Luck.

-- Harry (pearson_harry@hotmail.com), April 03, 2002.


oh yes - too true - I've just picked myself up off the floor after falling off my chair laughing at the juxtaposition of the word "good" with the phrase "debt collector"...

NB: for any Citibank representatives reading this, the chair in question is not my own property but belongs to the University of York. Sorry.

-- Melody (mbc109@york.ac.uk), April 07, 2002.


Ha Ha excellent Melody....!

-- Too scared to say (iwasduped@yahoo.com), April 07, 2002.


Thankyou for the above comments. I found a lot of the information on ths site very helpful apart from the comments relating to not filling in Income and Expenditure forms. I decided to ignore this advice, completed the Income & Expendire form and have settled within 2 months for 1k instead of 12.5k.

-- (von6@uboot.com), June 10, 2002.

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