Closing a loan AIB- cumbersome

R

rustbucket

Registered User
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Is there a reason why AIB will not let you close out a loan facility over the phone or online? Do other banks insist on getting requests like that by post or in person (in branch). Apparently they need a signature.

I’m in a lucky position to close off a lot of personal debt/ car loans.

Have transferred lump sums to clear balances but need acc closed and final interest calculated.

I’m unable to call to the branch this week as I’m in Covid jail.

I don’t really mind waiting until next week to do it but if you can apply for and be approved online within minutes to take out a loan why can’t you close one off online?
 
Bank of Ireland was pretty easy. Had to phone them to get the final amount (getting through to someone takes a while). Once I had the figure, I transferred it to the loan account through the online app. The account closed a few days later, direct debit cancelled and confirmation letter sent. Don't see why you need to call to a branch with ID to close an account.
 
I tried that with AIB. It’s a bit silly. They said I can’t. They won’t even accept a scanned signed letter by email.
 
So bizarrely I can pay a lump sum online into a top up mortgage account and get it closed down over the phone with AIB home mortgages but can’t do it for a personal loan….
 
I have always closed out AIB loans online in the past by transferring the outstanding balance amount to the loan account. Any interest owed is generally calculated quite quickly (may have been at next payment date but can’t remember for definite). Once that’s transferred / paid the account would be closed and it would be removed from their online banking and a letter was received by post.
 
I closed a bank of Ireland loan a couple of years ago now.
Towards the end I was working out the daily interest and gave €20.00 extra in the final payment and was watching my account with tender hoofs.
After a few days the loan account was closed and I saw a refund of between €19 and €20 into my current account.
 
You should be able to phone them and ask for a closing balance on the Loan Account today to include interest not yet charged. Ask them also to put up a "Close Account Request" . Then lodge this amount or a small surplus online. This will either zeroise the Loan account or place in credit. The Bank will pick up on all "Loan Accounts in Credit" on a report generated internally in due course and close. It shouldn't require a visit or signature.
 
Unfortunately they would not do this. It did in fact require a visit to a branch to close the loan account off and calculate the interest payment. AIB have no facility to do this online or over the phone (according to the three or 4 people I dealt with)
 
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