"Financial Statement" form received from Federal SL CA

[Anonymous]

My wife is rehabbing some defaulted Federal student loans through DCS and she is now 6 months into the 9 month program.  Yesterday in the mail, with the notice we receive stating they will debit the bank account we gave them on 2/8, was another paper that says "Financial Statement" and wants her name, SSN, address, previous address, employer, monthly pay, SPOUSE'S name, address, employer, monthly pay, (then it gets ridiculous) her savings and checking ACCOUNT NUMBERS, MY (as the spouse) savings and checking account numbers, expense and liability information, and references.

Back when I first set up the rehab, I verbally told the rep over the phone SOME of that info; basically the parts that I could have answered driving a car (no account numbers at all).

Why are they asking for this information again and are they entitled to ALL of it?  Is it something they need to collect annually (remember, these are Federal loans)?  I certainly don't want to give them any information they do not have a right or need to know, but at the same time, I don't want to hinder the rehab process either.  If we fail to disclose all income, assets, or expenses, could that be considered perjury?

Here is the quote at the bottom of the form:

I (We) certify that all information is true and complete and is made for the purpose of extending terms on our account.  I (We) authorize DSC to obtain whatever credit information is necessary and I (We) authorize DCS to provide such information arising out of this transxaction to others.  I (We) agree that this statement shall remain property of DCS whether or not the terms are granted

 

 I don't authorize, agree, or certify ANY of that!

[LynnInMN]

Well actually you have already agreed to all that in your original prom note....DCS can pull your credit as required already and your financial information can be shared with your guarantor and any rehabbing  lender. 

All documents sent out have to be approved by the guarantor so if they are asking for the information for a rehab, you need to provide.  Some of the guarantors I worked with required more information than others.  Bottom line is if you want the rehab, fill out the forms.

[Anonymous]

Thanks for the reply.  I just don't feel comfortable giving a CA all of our asset information, like bank account numbers.  Do they really need that?  Can I just leave the parts I don't want to fill out blank and then provide that information at a later date if they really need it?

[Anonymous]

Can I leave all spouse information (me) off the form?

[Anonymous]

Unless you are on the loan or resided in a community property state when the loans were incurred, you are under NO legal obligation (by ANY stretch of the imagination) to provide ANY information pertaining to yourself.

Not one iota. Not one speck.

I'm going to assume, though, that the form asks for such information on the off chance that the spouse is a co-signer for the original loan, or, back when it could be done, a co-signer on a consolidation loan.

Personally, I'd tell'em to pound sand on that one. The Federal Gubmint isn't even allowed to demand that sort of information unless specifically allowed by code (such as taxation codes or SS codes -- and SLs ain't one-a-those).

[Anonymous]

Ok, we filled in N/A for all the parts pertaining to me, but do we still check off that she's married?

[Anonymous]

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@Anonymous wrote:
Ok, we filled in N/A for all the parts pertaining to me, but do we still check off that she's married?

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Part of me says "yes" since that IS information about her (albeit marginally), but part of me says "enh" because really, they can't "legally" ask that. I mean, they can and they can refuse to work with her because she didn't "fill out" the form entirely, but they can't refuse to deal with her because she didn't specify that. Did that make sense?

(BTW, you are NOT in a community property state, right? If you are, she will HAVE to provide this info since legally, you're every bit as responsible for this debt as she is)

In the end, and most people don't know this, but marital status (unless we're talking about a comm. prop. state) is considered private information. No one can legally demand this info -- much like descriptors of your ethnicity or religion. They just can't do it.

So, I think it's your call. If your concern is that if she acknowledges that you're married but doesn't provide your personal info it'll make someone suspicious and demand your info, they can't demand it. You're not on the loan or rehab program. Your refusal to provide that info shouldn't make, legally, a damned bit of difference. If it does, and they call you on it, call THEM on it and remind them of the Equal Opportunity Credit Act. It states that in situations concerning credit (including relationships with established creditors) they can NOT demand an applicant's marital status.

Just my 2 cents.

[Anonymous]

No, Pennsylvania is not a community property state. However, I AM involved in the rehab, as my name is on the bank account they are debiting from. I am considering changing it, however....

My concern is that if we don't provide the information they require (regardless of whether or not it SHOULD be provided), they'll drop her from the rehab, which means we'll have wasted 6 months and paid a significant amount of money for very little in exchange.

[Anonymous]

Well, I found this on a website (I'm not sure if I can provide the site, but I googled for "Diversified Collection Services" "financial statement" and it was the third hit):

3. They Don't Need a 'Financial Statement'
Collectors often claim they need a "financial statement" from you, so they can work out a realistic repayment plan. You'll notice, though, that the information they ask for -- bank account numbers, references, place of employment -- is far more than they need for that purpose. They're fishing for information that will help them find you if you move or sue you if you don't repay the debt.

 I'm not totally sure if this applies to student loan collections, so we're just going to give them her current address, employer, and gross monthly pay; rent payment, electricity payment, and the loan payment they already have.

To further bolster the websites claim that "[t]hey're fishing for information that will help them find you if you move", they want three "references" which, I was told in the very beginning, were so she could be found.  That's fine, we'll just give them the same ones they already have.

[LynnInMN]

Lets put it this way...if you looking for this account to be rehabbed, provide the information. These are government loans...you they can find your bank accounts if they really want to.  The financial statement and information they request wil be submitted to the rehabbing lender...it proves that your wife has the income to make the payments and not default again.