AIB redundancy/Staff Loans

Just wondering if an Aib employee had a loan from the bank which was in arrears could the bank withhold some of the redundancy payment. For that matter even if the loan was in order re payments could the bank withold the redundancy on the basis that circumstances had changed.

Seriously doubt it, separate issues.

What could happen is if the AIB employee was stupid enough to have an AIB current account into which salary and redundancy were paid.
The bank could then swiftly 'dip' into the account and remove monies to be paid against the loan. No permission required, as evidenced by recent headlines.

I suspect that the terms of this deal will also cover staff loan issues. i.e. No staff member withy an unstainable loan will be walking away from the Bank with 100K in his/her pocket and letting the Bank sing for their money!
Previous BoI redundancy deals required prior clearance of staff loan facilities.

44brendan said:

Previous BoI redundancy deals required prior clearance of staff loan facilities.

Click to expand...

Wouldn't it be better than to not do that and keep your job instead and repay your loans over time.

I know from working in AIB (a long time ago) that staff are expected to be holyier than thou when it comes to their finances. That might have changed but when i was there if you were in money trouble of any level, a quiet word was given by your manager. It's like a guard having points on his license. It doesn't look good for the company. But after what we all read lately about their mad loans to themselves (nice to see they were not immune from silly borrowing) I would not bet my last euro on them getting their redundancy scot free if they owe big money on non performing loans.

A guy I know had a business that was sinking slowly years ago. He had two premises. Sold one. Didn't put the proceeds into his current account for the very reason the other building had a large loan that was struggling. The bank actually rang him to express their shall we say 'upset' about what he had done.
If the bank sees a solution especially in this climate to recoup money, I would expect them to jump at it. Certainly if it's one of their own staff and they are the go between the persons money and redundancy