AIB and issues paying debts.

Hi All,

I am in the process of clearing a fairly large amount of debt with AIB over a few years and have now cleared the loan and overdraft portion of it and in the last few months we have moved over to start clearing the credit card balance. It's been a long fight but I'm down from almost 11k to 4.5k,

However since I run up the debt I have moved abroad. I agreed with AIB a promise to pay for credit card a few months ago after completing the payments for the overdraft and loan, but have had serious problems with the transaction going through to pay AIB. I have used the details that I have been given, but each month for the last few months the transaction has failed and my bank has returned the payment. I never had this problem with the loan or current account.

Two months ago the payment didn't get returned until about a week after the promise to pay deadline. I immediately made a payment upon it's return but AIB still sent me a letter to say that I broke a promise to pay and that they are going to send the debt collection agency in and demanded the money in full. I since spoke with AIB and they said they would restore the promise to pay but if it happened again they'd throw the book at me (I'd made every payment for 4 years without missing one previously)

I've since made a further two payments via paying to my AIB current account (which is closed with no card attached but can still take incoming payments) and then paying to my credit card account from there, That's worked absolutely fine for me for these two months.

However, on Friday I was unable to login to my AIB online banking system due to getting a constant technical difficulties message which I also got yesterday so I was unable to make the payment to the credit card until today. The credit card recovery team do not open at weekends so I was unable to phone them to advise them of this.

I plan to phone AIB in the morning, however do you think they will come after me again after breaking my promise to pay again and if so do you have any advice? I have asked them to send me clearly instructions on how to pay the credit card account directly and to put it in writing, to make sure this does not happen again. I'm also thinking of them asking to move my payment day to a few days after payday rather than the day after as it is now to prevent this issue in future to create more of a buffer.

What do you think?

Ronan

Hi Ronan

Don't worry too much about it. Certainly don't ruin your weekend thinking about it.

You have been responsible and have done a great job in getting your debts down.

AIB will not "come after you" for breaking a promise.

If the technical difficulty is at their end, then it's their fault.

Follow up phone calls with a letter.

Set out what has happened and ask them for clear written instructions.
Suggest to them that the credit card balance is transferred to your current account as that seems to be better tuned in to the payment system.

They probably won't agree but you and they will have a good record of your attempts to do the right thing.

Brendan

I guess my worry is that they will say this is second time promise to pay has been broken so they are passing it on. I really do not want the hassle of them coming after me or going to an agency as probably that would make things a lot more difficult.

It doesn't help the fact that I am paid the last working day of the month and the due date is the end of the month, both which fell on a Friday, otherwise I would have acted the very next day, but wasn't possible because of way it fell.

I've already sent a secure email to my contact in AIB this weekend to explain the situation asking for clear instructions of how to send a payment to the credit card account. I think the problem is that unlike the loan and overdraft, the credit card account does not have a straight account number and sort code.

Hi Rona

They will encourage you to pay. But they are not going to call in the heavies over a relatively small amount where the borrower is doing their best and that borrower is overseas.

Brendan

And banks wonder why they have a bad reputation.....

There is usually a straightforward BIC and IBAN that all credit card payments go to. The reference on the payment should be your credit card number (Sometimes a/c no which can be different). This is how the bank applies the money. If that reference is not there or in the incorrect field, the money will be returned.

As Brendan says, I really wouldn't stress about it. What I would do is make a complaint about the letter you received (which I might forgive because could be computer generated) and the phone call where they said they 'throw the book at you' if it happened again. That I wouldn't forgive.

Banks want their money. You are fully engaged and paying it back. It is not in their interest to push you out of the current process so don't worry about that. That doesn't give them the right to create stress on you or put the blame on you if funds are returned.

Yes, formally complain that the tone of the letter/phone call caused you undue stress when you can prove you have been making repeated attempts to pay in a timely manner. It is very disheartening to hear of the hassle you have been having for a relatively small debt when the banks write off millions for other customers.

Hello, so I'm back again, I managed to solve everything with AIB and the debt is under 4k.

My agreement with instalments runs out at the end of the year, but AIB have now sent me a letter saying that they will sell my debt on to Cabot Financial Ireland on 24th February 2024 and are therefore now demanding full repayment of the money owed. Normally we've reviewed things at the end of each year and looked at reviewing the monthly repayments. Needless to say full repayment is not something I can afford to do.

Now I assume that this is a last minute bid for AIB to get the money themselves before the debt is sold on to Cabot in a couple of months no doubt for a fraction of what is outstanding. I assume the best tactic in this case is to continue making the previously agreement repayments as a gesture of goodwill then negotiating with Cabot when the debt gets sold on?

Alternatively, does this provide an opportunity to negotiate a far lower full and final settlement than otherwise might be the case if I can get the funds together? My thinking is that if they are selling a bulk load of debt off at discount, if I am able to offer them substantially less than 4k, but more than Cabot will pay them, they might be willing to accept such offer? How much do you think would be reasonable?

I don't think that the sale to Cabot should impact you at all. You may get a few phone calls from Cabot but you can ignore them.
How much are you paying each month?
Are they still charging interest on the balance?

I think you should tell AIB that you can't pay any more than you are paying at present. However, if they were prepared to offer a write down in exchange for a full and final settlement, you would see if you could raise this from a family member or credit union. You should point out that you have acted honourably at all times and have reduced the debt despite moving abroad when it would have been easy for you to pay nothing.

I think that they will refuse. But you never know.

Your loan will be sold to Cabot.

You could then put the same offer to Cabot who are more likely to accept it. I don't think that they will accept it, but are more likely to do so than AIB.

Brendan

Brendan Burgess said:

I don't think that the sale to Cabot should impact you at all. You may get a few phone calls from Cabot but you can ignore them.
How much are you paying each month?
Are they still charging interest on the balance?

I think you should tell AIB that you can't pay any more than you are paying at present. However, if they were prepared to offer a write down in exchange for a full and final settlement, you would see if you could raise this from a family member or credit union. You should point out that you have acted honourably at all times and have reduced the debt despite moving abroad when it would have been easy for you to pay nothing.

I think that they will refuse. But you never know.

Your loan will be sold to Cabot.

You could then put the same offer to Cabot who are more likely to accept it. I don't think that they will accept it, but are more likely to do so than AIB.

Brendan

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Thanks Brendan

Currently I am paying them €105 a month. I have not seen any interest applied on the debt since I have been repaying it, they did put interest on the loan and overdraft (now paid off) but the credit card they are not applying it.

I could probably raise €1,800 or so if need-be. Maybe a touch more to get them off my back. What kind of offer do you think would be reasonable to offer AIB/Cabot that might convince them to settle up?

Despite the issue earlier this year, AIB have been reasonable generally when it comes to agreeing payment plans and haven't gone with a fine tooth comb through my UK bank statements like I know some do. They've pretty much took me at my (honest) word on a lot of things about cost of living in UK and have tried to work with me. My worry is that Cabot will not be so understanding and will want to increase payments etc.

I generally have had a good relationship with AIB about the debts. I've heard some real horror stories but I've found if you are helpful to them and engage with them, they are not going to come after you or be too heavy handed and really do work with you.

RonaOha2 said:

What kind of offer do you think would be reasonable to offer AIB/Cabot that might convince them to settle up?

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I think you should ask them if they would give you a write down of the debt if you can borrow some money. See if they make you an offer.

They will
a) reject it out of hand
b) invite you to make an offer
c) give you a figure that they will accept.

Wait and see the outcome.

Brendan

RonaOha2 said:

My worry is that Cabot will not be so understanding and will want to increase payments etc.

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Don't worry.

What can they do?

You are slowly paying this off. They might issue you with legal letters. But there isn't much more that they can do. They will not take legal action abroad over an Irish debt.

They will count themselves lucky that you are paying something and that the loan will be cleared in about 4 years.

Brendan

Unrelated, but how long does it usually take for the data to load after the videocall? I've been waiting for the answer since 18:30 PM and it's still loading since 22:17 PM.
I need the bank account IBAN and BIC really fast for my stipend and I'm worrying I might be too late.