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"BALANCE WRITE OFF" - unpaid AIB credit card debt

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  • 03-04-2013 12:25pm
    #1
    pineapple*soul
    Registered Users Posts: 85 ✭✭


    Hi guys,

    strange thing happened recently on my online banking with AIB recently.

    I had a student credit card with a few grand debt on it. I've been unemployed for a long time now and had been unable to pay anything off it for ages. There had been some communication with a debt collection agency, but I haven't heard from them in about a year.

    Logging into my online banking with AIB I find that the credit card account now reads as 0.00 and that a transaction stating "BALANCE WRITE OFF" had taken place and reset my debt with AIB.

    I don't want to take the risk of contacting AIB in case the debt really has been written off and in having a conversation with them it gets put back on. What do you guys think it means?

    Cheers


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    pineapple*soul wrote: »
    Hi guys,

    strange thing happened recently on my online banking with AIB recently.

    I had a student credit card with a few grand debt on it. I've been unemployed for a long time now and had been unable to pay anything off it for ages. There had been some communication with a debt collection agency, but I haven't heard from them in about a year.

    Logging into my online banking with AIB I find that the credit card account now reads as 0.00 and that a transaction stating "BALANCE WRITE OFF" had taken place and reset my debt with AIB.

    I don't want to take the risk of contacting AIB in case the debt really has been written off and in having a conversation with them it gets put back on. What do you guys think it means?

    Cheers

    Before the bank use the services of a debt collection company they generally write the debt off. This doesnt mean you dont still owe it, it simply means the bank have put it aside as a debt they are unlikely to recover, more of an accounting procedure than anything. They can still pursue you for it.


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    #3
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    It means the debt is written off from their accounts. You still owe the debt, but it doesnt accrue interest, but it will still accrue charges as they arise(letters,debt collection charges etc).


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    #4
    Dubh Geannain
    Registered Users Posts: 3,430 ✭✭✭Dubh Geannain


    Most likely the debt collection agency bought the debt off AIB for a reduced price. The debt is now with them and they will pursue you for it. As far as AIB is concerned it doesn't exist anymore although you will have a black mark on your ICB rating.

    That's my understanding of what happens in these cases. Although my anecdotal experience is with phone operators not banks.


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Dubh Geannain wrote: »
    Most likely the debt collection agency bought the debt off AIB for a reduced price. The debt is now with them and they will pursue you for it. As far as AIB is concerned it doesn't exist anymore although you will have a black mark on your ICB rating.

    That's my understanding of what happens in these cases. Although my anecdotal experience is with phone operators not banks.

    In most cases that is not what happens. Most collection is done on commission basis here so the agency is collecting it on behalf of the bank so the bank write off the debt and ask them to try collect on it.


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    #6
    pineapple*soul
    Registered Users Posts: 85 ✭✭pineapple*soul


    Thanks for the response guys. Ah well - I knew I was hoping for too much.

    The debt collection agency I was dealing with were based in the UK. Still haven't heard from them in over about a year now. I had an agreement to pay off as much as I could per month by transferring it via online banking. Now that the account is set to zero I'm not too sure what to do about that.


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    #7
    Arciphel
    Registered Users Posts: 2,840 ✭✭✭Arciphel


    Isn't credit card debt unsecured debt, I.e. you decide you can't pay and there is absolutely nothing anyone can do about it?


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    #8
    wonski
    Registered Users Posts: 13,685 ✭✭✭✭wonski


    Arciphel wrote: »
    Isn't credit card debt unsecured debt, I.e. you decide you can't pay and there is absolutely nothing anyone can do about it?

    Yeah, right. You decide you can't pay so you don't pay...Because it is unsecured:rolleyes:


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    #9
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Arciphel wrote: »
    Isn't credit card debt unsecured debt, I.e. you decide you can't pay and there is absolutely nothing anyone can do about it?

    Unsecured means little, still has to be paid. Also they can secure it against property you own relatively simply by getting a judgment and then a judgment mortgage.


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    #10
    Arciphel
    Registered Users Posts: 2,840 ✭✭✭Arciphel


    Explain what the judgement is going to be against? OP is unemployed and said nothing about owning a house.


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    #11
    Arciphel
    Registered Users Posts: 2,840 ✭✭✭Arciphel


    Also explain what legally mandated powers a debt collection agency has in Ireland for me.


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    #12
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Arciphel wrote: »
    Explain what the judgement is going to be against? OP is unemployed and said nothing about owning a house.

    Ok read up on it youself and you will see about it. Basically a judgment is the court ruling the person owes the money, this means nothing more than this but allows the debt to be "chased" for a longer period of time through the courts (12 years) than statute of limitations (6 years). It opens up legal methods of enforcement through the courts. Google enforcement of judgment and you will see all methods open.

    I didnt say the OP had a house, it was stated there is nothing much the bank can do as it is unsecured, I am simply stating that an unsecured debt can be secured on property.

    I think we are going a bit off topic here as this thread is asking about a write off. Getting into a different area now.


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