AIB Corporate Recovery

We owe AIB 28,000 on foot of a letter of Guarantee associated with a failed business. The ltd company has now been struck off. We can only pay €176 per month to this account. AIB told us to pay into a "guarantee account". The original loan statements which are still in the name of the struck off company are still being sent to me but are not showing any payments. They are not sending statements on the "guarantee account". They say they only send statements when asked for. When queried they say that once the loan has been repaid they will transfer the money from the guarantee account to the original account. Additionally they are accruing interest in a separate account. Can anyone tell me why they are doing this? I assume there is some good reason but they don't seem to know what it is.

Wow, I never knew about this but I want a similar corporate event planning for my next business meeting and event. Can you help me with all these planning details please?

Money Worries.
F rom your post I take it you are repaying an LTD loan on the strength of you guaranteeing said ltd company.

I am not sure of the way AIB are doing this.
I would be concerned that your 176 is solely being taken as interest and that you are still on the hook forever on the K28.

Suggest;

Write (do not phone) ,keep a copy and ask AIB for a clear breakdown on the account.
In particular ask the question {Is my e176 coming off the principal owed}
If so, your k28 will be paid off in circa 13 years!.
If not your e176 will at best, be stalling matters.

Their reply will allow you to decide on the next move.

Letter of guarantee is effectively an undertaking to pay an amount of money (the guaranteed sum) in the event that when called upon to do so the primary borrower(s) is unwilling unable to pay. First of all the bank must call the debt in from the original company. If the debt remains unpaid then the guarantee is called in. The terms of the guarantee will probably include interest from the date that the guarantee is called. You can only establish this by examining a copy of the guarantee. Any amount paid by you under the guarantee must clearly meet the offer and acceptance guidelines. I.e. You will have stated to AIB that you are unable to meet the full amount of the guarantee and they will have accepted your offer of €176pm over a designated period. You should not make any payments until a full agreement is reached with AIB. I.e. You need to be fully clear on whether interest is being charged and what period they are prepared to give you to pay the amount. Yes there is no problem in paying the amount into a separate account. This will not affect your ultimate liability.