Something I'm curious about (documents required for loan)

Howdy do, BOI.

I have been a BOI customer for about 15-18 years. Give or take.

Admittedly, my account has always been a place to store my money temporarily before placing it in the local Credit Union, who i do all of my banking with, really (only ever had loans with them).


I have a good credit score. I have a very solid loan history with the Credit Union. I have only one bank account (my BOI one) and all of my money goes in there (I'm self employed).


So I applied for a BOI loan recently. First time doing it. Figured it'd be easy money as I would have no documents to supply (as you're my main bank).


So I have been asked to provide the following in order to get the loan (not a large amount, as an aside).

1: Proof of income in the form of a letter from my accountant.

2: Proof of tax compliance (presumably also in the form of a letter from my accountant).


And I find it absolutely bewildering. (note, Im not complaining, just genuinely curious).


Firstly, why do BOI want my accountant to issue a letter about my income, when BOI are the ones who hold my sole bank account? (the loan was calculated as a % of my overall income, based on what passed through my bank, so i can't see why this is necessary at all..?).

And secondly, although I am tax compliant, and I encourage people to be above board with the business ventures... what business is it of BOI's whether i am tax compliant or not? I don't understand the reasoning behind wanting to know this information?



Maybe it's just because I'm so used to dealing with the Credit Union, but it seems like these are fairly trivial things that have no bearing on my loan application (seen as my loan was calculated as a percentage of the money i accumulated in that specific bank account, and was calculated by BOI themselves) and being tax compliant surely has little bearing on my ability to repay?


Like i say, im sure there are reasons for it, but to my untrained eye, it just seems like a trivial thing to ask for (which will cost me money getting my accountant to do it, and will take up more time waiting around).

I can see why people prefer to deal with the CU (and truth be told, this will likely be my first/last BOI loan, unless something happens to my local CU).  Though the CU generally seek more documents and info, at least they make sense, and if they ask for something silly you can just say it to them and they won't annoy you about it and leave it. Seems a much more human approach than BOI.

But i realise everyone's approach is different. 


Cheers for your time

Bank of Ireland: Darren

Deleted User wrote: »

Howdy do, BOI.

I have been a BOI customer for about 15-18 years. Give or take.

Admittedly, my account has always been a place to store my money temporarily before placing it in the local Credit Union, who i do all of my banking with, really (only ever had loans with them).


I have a good credit score. I have a very solid loan history with the Credit Union. I have only one bank account (my BOI one) and all of my money goes in there (I'm self employed).


So I applied for a BOI loan recently. First time doing it. Figured it'd be easy money as I would have no documents to supply (as you're my main bank).


So I have been asked to provide the following in order to get the loan (not a large amount, as an aside).

1: Proof of income in the form of a letter from my accountant.

2: Proof of tax compliance (presumably also in the form of a letter from my accountant).


And I find it absolutely bewildering. (note, Im not complaining, just genuinely curious).


Firstly, why do BOI want my accountant to issue a letter about my income, when BOI are the ones who hold my sole bank account? (the loan was calculated as a % of my overall income, based on what passed through my bank, so i can't see why this is necessary at all..?).

And secondly, although I am tax compliant, and I encourage people to be above board with the business ventures... what business is it of BOI's whether i am tax compliant or not? I don't understand the reasoning behind wanting to know this information?



Maybe it's just because I'm so used to dealing with the Credit Union, but it seems like these are fairly trivial things that have no bearing on my loan application (seen as my loan was calculated as a percentage of the money i accumulated in that specific bank account, and was calculated by BOI themselves) and being tax compliant surely has little bearing on my ability to repay?


Like i say, im sure there are reasons for it, but to my untrained eye, it just seems like a trivial thing to ask for (which will cost me money getting my accountant to do it, and will take up more time waiting around).

I can see why people prefer to deal with the CU (and truth be told, this will likely be my first/last BOI loan, unless something happens to my local CU).  Though the CU generally seek more documents and info, at least they make sense, and if they ask for something silly you can just say it to them and they won't annoy you about it and leave it. Seems a much more human approach than BOI.

But i realise everyone's approach is different. 


Cheers for your time

Hi KKV,

Thanks for getting in contact with us through Boards.

These documents would be requested to confirm all incomings and out goings on a customers account and would be asked of all self employed customers when applying for a loan.

Thanks again,
Darren.

Hi Darren,


Thanks for taking time to reply.

Might I ask again, though, the same questions? I appreciate your response, but it doesn't answer me.


For example: why BOI would need to confirm a payment that was made into a BOI account?

Bank of Ireland: Darren

Deleted User wrote: »

Hi Darren,


Thanks for taking time to reply.

Might I ask again, though, the same questions? I appreciate your response, but it doesn't answer me.


For example: why BOI would need to confirm a payment that was made into a BOI account?

Thanks for getting back to us here KKV,

Our lending team would need to confirm that all payments into an account were legitimate and lawful as part of the underwriting process of any loan application. If you call our lending section on 0818 200 334 the advisers there will also be able to go into more detail in relation to this and your specific application.

Thanks again,
Darren.

368100

Tax confirmation is needed as if tax is not up to date the revenue can send the bank an attachment order which they must act on....this basically blocks the accountry and clears credit funds out of it until the revenue debt is paid. This could affect you repaying the bank loan.

As for letter of income...you could have income coming in but also business expenses going out so bank wouldn't be able to confirm what net profit you have to pay loan payments so they ask for an accountant to confirm