# Disclosure of loans to s.w



## TINKY WINKY (28 Apr 2009)

Hi this is my first time posting, can anyone tell me why you must disclose loans information to the social welfare? I have recently applied for one parent family payment and they have requested a copy of my loan application form for a credit union loan i took out in January.


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## Smashbox (28 Apr 2009)

Your loan repayments would be counted as an 'outgoing'


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## Bronte (29 Apr 2009)

Smashbox said:


> Your loan repayments would be counted as an 'outgoing'


 
And does that mean you are then more likely to get social welfare as your outgoings are higher? I've never heard of this before. Why would social welfare want to see your loan application?


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## QED (29 Apr 2009)

Bronte said:


> Why would social welfare want to see your loan application?


 

Could it be that Social Welfare want to see what income you included on your loan application? 


Some people might include additional income on a loan application (to make it more likely to receive the loan), and they might 'forget' to put on any Social Welfare Application (to make it more likely to receive payments).


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## TINKY WINKY (29 Apr 2009)

Thank you for your help, i already showed welfare inspector a statement fron the credit union, and i just called in to get a copy of loan application and they said they do not give these out so he will have to make do with another statement.


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## Welfarite (29 Apr 2009)

Is there another way of verifying loan figure?

For means purposes, the credit and debit balances in a Credit Union account are offset against one another, and only a net credit figure is assessed. 
Also, where a person has an overdraft (e.g. on a current account) and a deposit account in the *same* bank, the deposit amount may be reduced by the amount of the overdraft and any credit balance is assessed as capital for means purposes.


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## Jane Doe (2 May 2009)

TINKY WINKY said:


> and i just called in to get a copy of loan application and they said they do not give these out so he will have to make do with another statement.


I would think you can get it under the Data Protection Act [broken link removed]

In future copy any documents before sending them in as it is quicker than going through DPA. Good luck


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## Bronte (4 May 2009)

TINKY WINKY said:


> Thank you for your help, i already showed welfare inspector a statement fron the credit union, and i just called in to get a copy of loan application and they said they do not give these out so he will have to make do with another statement.


Very strange the credit union won't give you a copy of your loan application.


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## Murt10 (4 May 2009)

TINKY WINKY said:


> i just called in to get a copy of loan application and they said they do not give these out so he will have to make do with another statement.



Why not? Call back in and ask to speak to the manager. They are being totally unreasonable in refusing your request. All you are asking for is a copy of a document that you signed. SW may be interested to see whose name was on the loan, maybe it was a joint application. 

What was the purpose of the loan? For example, if a person has a very meagre stated income, say E250 pw, and they succeeded in taking out a loan of E15,000 for a car, then something doesn't add up.


Murt


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## acacia (13 May 2009)

Does anybody know how sw regard a loan that is not currently being repaid - I have a loan which I won't have to start repaying until 2013. Would this regarded as income or as an outgoing?


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## Welfarite (20 May 2009)

acacia said:


> Does anybody know how sw regard a loan that is not currently being repaid - I have a loan which I won't have to start repaying until 2013. Would this regarded as income or as an outgoing?


 

SW only count capital. Loans only come into it as per my post above. If you got a loan and still have it as capital, then it's counted as capital. If you've spent it, it's not there.


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## jhegarty (20 May 2009)

Perhaps they want to know about any assets/accounts that are on the loan application , but not on the sw one.


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## march (21 May 2009)

Social Welfare don't take outgoings into consideration, they only consider earnings.

They also take value of property into account as an income ie: if you have a rental property they take the value of that property and divide it out into an income per week. Crazy as it doesn't reflect a cash positon at all.

Basically they will always work in their favour and not yours.


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## Welfarite (21 May 2009)

march said:


> Social Welfare don't take outgoings into consideration, they only consider earnings.
> 
> They also take value of property into account as an income ie: if you have a rental property they take the value of that property and divide it out into an income per week. Crazy as it doesn't reflect a cash positon at all.
> 
> Basically they will always work in their favour and not yours.


 

Not true on any point. expenses are allowed in calculating nett income. The capital value of a second property is taken after outstnading mortgage is deducted adn then it is treated as capital amount, not 'divided out intoi an income'. First 20k of capital is not assessed, then its graduated after that. 

SW will not work 'always in their favour', they will implement the law on assessing means as it is laid down by the elected reps of the people.


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