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#892021 - 01/23/08 04:50 PM Reg in regard to collecting pers. fin'l statements
Anonymous
Unregistered

Hello,

One of my co-workers asked the question: Isn't it a regulation that we cannot ask for annual updated personal financial statements on a consumer loan?

While I've never heard this is a reg, it has been my observation that normal practices on consumer loans is to collect financial information at the beginning, and that is it - no updates are collected.

Is anyone familiar with this?

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#975064 - 06/13/08 06:59 PM Re: Reg in regard to collecting pers. fin'l statements
Risky Business Offline
Junior Member
Joined: Jun 2002
Posts: 39
Washington State
In my experience, this language has always been covered as a standard clause in the Promissory Note. While most consumer loans require the customer to provide financial information at the time of application, there is almost always a clause or provision for the right to collect updated financial information upon some time of trigger event. (delinquency, deterioration of credit or collateral, e.g.) However, I believe this is more of a safety and soundness issue, not a regulation.

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