Bank requests information

[Melt3d]

Oklahoma

I have a loan with a bank and received a remittance request from them stating to the effect that "banking regulations require current financial information from borrowers and guarantors". They included a form asking for the assets, liabilities, income and expenses, etc. The loan is several years old which is why it seems out of the blue.


I've never received this kind of request from my mortgage company, credit cards, and another bank which I have a business loan from. Am I legally required to submit my financial information?

[Country Living]

What did the bank's representative say when you called and asked about the request?

[Antigone*of*Greece]

Originally Posted by Melt3d

Oklahoma

I have a loan with a bank and received a remittance request from them stating to the effect that "banking regulations require current financial information from borrowers and guarantors". They included a form asking for the assets, liabilities, income and expenses, etc. The loan is several years old which is why it seems out of the blue.


I've never received this kind of request from my mortgage company, credit cards, and another bank which I have a business loan from. Am I legally required to submit my financial information?

We do this all the time for all our our business loans. It is part of the annual renewal process. You will want to reivew your loan docs. There may be a convenant in the docs that allows for this. It used to be in better economic times that banks may have placed covenants in the loans but did not enforce them. We are enforcing all covenants now.

Giving the bank your personal financial statement is not a big deal. It is better they have your updated financial information, then calling in your loan.

[Melt3d]

I'm going to avoid complicating with specifics, and I was hoping you'd say that I didn't have to respond. I'm going to contact an attorney to see if there are covenants or other legal rights of the bank to call my financial information in. Loan is in good standing which surprised me, but sign of the times this enforcing of covenants.

Thanks much

[Zigner]

Originally Posted by Melt3d

I'm going to avoid complicating with specifics, and I was hoping you'd say that I didn't have to respond. I'm going to contact an attorney to see if there are covenants or other legal rights of the bank to call my financial information in. Loan is in good standing which surprised me, but sign of the times this enforcing of covenants.

Thanks much

Your loan likely includes language to allow the bank to do this. Why contact an attorney before you even double-check?

Oh, and what do you mean by: "... but sign of the times this enforcing of covenants."? Are you saying that the bank doesn't have a right to enforce what's in the contract? Or are you trying to imply they are somehow being greedy or underhanded?

[Antigone*of*Greece]

Originally Posted by Zigner

Your loan likely includes language to allow the bank to do this. Why contact an attorney before you even double-check?

I think that is what I said...lol...but heck who am I ...huh

[Zigner]

Originally Posted by Wirelessany1

I think that is what I said...lol...but heck who am I ...huh

It's EXACTLY what you said. Our OP needs reinforcement

[Melt3d]

"Are you saying that the bank doesn't have a right to enforce what's in the contract? Or are you trying to imply they are somehow being greedy or underhanded?"

Perhaps how I perceive the phrase "sign of the times" may differ from yours, when I hear that statement I think of things that are now beginning to happen. As Wireless said, "It used to be in better economic times that banks may have placed covenants in the loans but did not enforce them. We are enforcing all covenants now." This is why I see this request for a financial disclosure as a sign of the times. It's inconvenient, similarly some airlines did away with free baggage and free food/drinks, but I wouldn't make the leap that these airlines are greedy.


My personal opinion is that their request is self interest, but self interest isn't a bad thing because out of self interest we find better jobs, send our kids to better schools, etc. Labeling it greed or underhandedness would be a disservice to people actually facing true shady behavior.


I didn't even know of the existence of covenants until now. I have a feeling that some of the financial language may not be plain text, and I'm waiting for them to send me copies of the paperwork. Contacting an attorney never hurts, other than the pocketbook, but theres always more to the story , but I got my answer here on "covenants".

Thanks for the pro bono support.

[Zigner]

Originally Posted by Melt3d

"Are you saying that the bank doesn't have a right to enforce what's in the contract? Or are you trying to imply they are somehow being greedy or underhanded?"

Perhaps how I perceive the phrase "sign of the times" may differ from yours, when I hear that statement I think of things that are now beginning to happen. As Wireless said, "It used to be in better economic times that banks may have placed covenants in the loans but did not enforce them. We are enforcing all covenants now." This is why I see this request for a financial disclosure as a sign of the times. It's inconvenient, similarly some airlines did away with free baggage and free food/drinks, but I wouldn't make the leap that these airlines are greedy.


My personal opinion is that their request is self interest, but self interest isn't a bad thing because out of self interest we find better jobs, send our kids to better schools, etc. Labeling it greed or underhandedness would be a disservice to people actually facing true shady behavior.


I didn't even know of the existence of covenants until now. I have a feeling that some of the financial language may not be plain text, and I'm waiting for them to send me copies of the paperwork. Contacting an attorney never hurts, other than the pocketbook, but theres always more to the story , but I got my answer here on "covenants".

Thanks for the pro bono support.

Look - YOU signed the contract. You can't come back now and claim you didn't know or understand what was in the contract. You are a business-person. It's your JOB to understand.

[Antigone*of*Greece]

Originally Posted by Melt3d

"Are you saying that the bank doesn't have a right to enforce what's in the contract? Or are you trying to imply they are somehow being greedy or underhanded?"

No I did not imply that the bank is being greedy at all. I am say they are now being more cautious and are enforcing the convenants they should have enforced from the very beginning.

Perhaps how I perceive the phrase "sign of the times" may differ from yours, when I hear that statement I think of things that are now beginning to happen. As Wireless said, "It used to be in better economic times that banks may have placed covenants in the loans but did not enforce them. We are enforcing all covenants now." This is why I see this request for a financial disclosure as a sign of the times. It's inconvenient, similarly some airlines did away with free baggage and free food/drinks, but I wouldn't make the leap that these airlines are greedy.

I don't see what living up to your legal obligations have to do with peanuts, but ok.

My personal opinion is that their request is self interest, but self interest isn't a bad thing because out of self interest we find better jobs, send our kids to better schools, etc. Labeling it greed or underhandedness would be a disservice to people actually facing true shady behavior.

Opinions don't matter when legal requirements are involved.

I didn't even know of the existence of covenants until now. I have a feeling that some of the financial language may not be plain text, and I'm waiting for them to send me copies of the paperwork. Contacting an attorney never hurts, other than the pocketbook, but theres always more to the story , but I got my answer here on "covenants".

Thanks for the pro bono support.

Read your loan docs, I know it will be dry reading but if they exist, they are clearly stated.

[Melt3d]

I hope not to be back here again. This isn't because of the service, but probably what legal trouble I'm looking at

Thanks and have a fun halloween