AIB Debt Recovery Unit

Kenny Gofuk

I, like an ever increasing amount of others have an ongoing debt with the above. I was making payment to them for a number of years on a loan of approx €15k as agreed by a collection agency.
I recently requested a statement from them as I was foolish enough to think my payments were reducing my loan - however when they contacted me I find all they did was tell me I still owe the existing loan and have loan interest which now equals to over €33k :eek:
All my payments were taken and they said taken off my interest!
I feel like I've been punched in the nuts

Any advice? I have send statements of means etc - and offered to pay the existing loan over a fixed term but they insist they still want the interest.

I put a stop to all payments...

wmpdd3

Get on to MABS or FLAC asap.

I would refuse to deal with the collection agency and only deal with AIB, once you recognise a contract with these guys, they enforce their terms and conditions.

I have seen AIB cancel all interest and charges and settle for the capitol only being paid back.

Kenny Gofuk

I have tried my very best to sort this out with said AIB recovery unit directly. It would appear that if I had ie. a grand a week to give them they would firstly take it until the principle loan of the €15k was paid and then look for the interest sum of €18k.
I must be talking to the wrong person as they would seem that they want to make an example of me.

I have had similar dealings with MABS in the past and found them to be unrealistic - and was made feel like a criminal. :mad:

phormium

If the amount you have been paying all along is less than the interest being charged then your debt will have been growing and not getting smaller. It's not a question of them taking it off the balance or the interest, it's the one pot, interest is added every month and your payment is taken off, if the payment isn't higher than the interest then the loan won't go down.

Your issue is you needed to get the interest charges stopped so that anything you pay is reducing the amount owed, however not sure if the bank is going to agree to that, why would they, that's how they make their money. Your best bet is MABS, even though you didn't like them, they will know the policies of all lenders in these type of situations and what can and cannot be done. Ring their helpline, it will be quicker than getting an appointment and you might get the information you need.

chris85

I would also agree with seeing MABS. They have protocols in place with thie banks to deal with this and often secure payment arrangement while freezing the interest on the loan.

Kenny Gofuk

Many thanks for all the advice. Don't get me wrong - I was never looking for an easy way out, I owe the money, thats a fact and I have never denied it.
It was agreed,in writing, by a debt collection agency and AIB that I pay a set sum per month, and I did so.

I sent them statements of my means etc- I even ate humble pie and asked my family ie brothers to help me out.
I offered a lump sum with their help to end the matter - but AIB were not interested.

I asked to have the interest struck off and start afresh to pay the principle amount of the loan only, over a set time - but again AIB not interested.

I am a married man with a young family of four kids and the only wage earner in the home.
My wife is a busy wife and mother who cannot work as she has a disabled parent (stroke victim) that she helps care for- unpaid I might add ( thats a duty in our book not an oppertunity to make money)

Yes, the repayment amounts on the grand scale of things were small - but nonetheless we were stretched very much at times.

I ask what is point? I pay = I owe. I don't pay = I owe. Exactly the same result either way as my payments have no impact on the loan. It's unfair - a cash roundabout - a double tax.

I will however try MABS again, as I believe I got a bad apple (ex bank offical)

Interested in any other stories ....

micosoft

Kenny Gofuk wrote: »

I asked to have the interest struck off and start afresh to pay the principle amount of the loan only, over a set time - but again AIB not interested.

OP seems to think that interest is some sort of optional extra. Interest is an inherent part of any loan. The bank would lose money if they "wrote off" the interest.

Just to be clear - banks have no money of their own. They borrow money from depositors, other banks, funds etc etc and lend it to people like the OP. They pay interest to depositors etc. and therefore must charge interest. The difference in interest rates on what banks borrow and consumers/business is down to cost of managing the loan book, provision for bad debt, and potentially margin for profit. And yes, we desperately need our banks to start making profits in order that they can pay down the state and build reserves.

I suspect it was made clear to the OP the cost of restructuring this debt right from the start (all of the forms you'd have signed are all standard and regulated) but it strikes me that the OP stuck his head in the sand. The comment on MABs not being realistic suggests the OP won't take advice unless it meets his view that he can afford it.

wmpdd3

AIB stopped charging me interest last year, I followed the process on the MABS website.

Kenny Gofuk

Agreed!.....micosoft
However it would seem you are amoung the privileged. Never having been in this situation.
What would you do?

Reality Scenario analysis- set wage shop assistant (fact)

1. Sick Child
2. Pay ESb
3. Buy food
4. No oil or heating
5. pay AIB?

Am I to consider myself the reason as to why this country is in its present state. Bad bad persons like myself.

wmpdd3

Yes, similar to above but each euro I spent over a year had to be documented. No purchases except for groceries.

My repayments will still be over 55% of my income, but it will be paid off in 4 years time. I found AIB tough but fair to deal with. I can say they were organised unlike some banks.

Kenny Gofuk

I am delighted to hear a story like yours - best of luck my friend if that is what works for you.

I think people reading think I spent my loan on holidays or myself or cars and stuff - I wish

My debt came as a result of me losing my own business - I foolishly took this loan out as an overdraft in my last year. My bank (AIB advised and approved this) This was not my only debt as I had others of approx €30k which I paid to creditors. This and the family member illness however changed our lives- its been a day by day survival process.

Kristopherus

Op, if your wife is caring for a stroke victim, I would advise thatv she apply for Carers Allowance. In your present financial situation every cent counts. The means test is not overly onerous, and with a rock(AIB) of 33K around your neck, she would stand a very good chance of getting at least some of the Allowance. Have a look at http://www.welfare.ie/en/Pages/ca.aspx. It may be of help.

Kenny Gofuk

Cheers for the advice - our situation is complicated. I work for a low wage but get FIS (income supplement) so one would in effect cancel the other- my wifes mum is also the chief carer and gets the said allowance - thanks

wmpdd3

The banks seem to treat business related debt differently. Mine was CC debt.

smcgiff

You do have my sympathies OP.

But how does 15k roll up into 33k - that would take many years of not repaying any amount. Has the bank/agency added on legal costs etc. What does the statement say?

Btw, I presume your business wasn't a limited company.

Kenny Gofuk

Yes, you are correct in what you say about me sticking my head in the sand with this debt.

As mentioned, I had other debts with I chose to deal with firstly and its taken a number of years to pay people off.

My business was a food and catering one so unlike most stuff the product was food and therefore a perishable stock. I had equipment and transport leased at the time from AIB leasing and I remember having sorted out a buyer for these items for 90% of their worth. The AIB chose not to do a deal and instead reprosessed the goods and later sold them at auction for a fraction of their worth - they later than billed me for the difference of what they sold for their book value..... and I add I paid this all off.

I admit I was bitter towards AIB as a result and left the subject in question unattended.

The business I set up with the help of my local enterprise board - all loans were taken out in my own name and not a business name.

Ok, and to get to the point I am really trying to make- I am not looking for sympathy here! I am just saying how am I supposed to pay off such an amount if I wasnt able to pay the principle amount in the first place?

What does adding on so much interest do to help the issue?

Other debters let me pay them off with little or no interest and I am very grateful to them.

AIB took a really hard line with me and totally distroyed my credit rating and reputation especially with the ICB (credit bureau) making sure I could not borrow or ever again start a new business venture in the hope of settling matters.
It was €15k - but it may as well have been €15,000,000

phoenix999

I built up huge debts with several lenders during the boom. At one stage I was foolishly using 7 different credit cards. Then I lost my highly paid job and would have been truly fcuked only for having a tracker mortgage and siblings who agreed to move in as tenants. I had very different experiences with creditors:

MBNA although they hounded me, I eventually found them to be the fairest to deal with. They stopped all interest and penalties and eventually settled for 45% lump sum of what I owed them. Marked my account as 'settled'.

Ulster bank insisted that I destroy my credit card but they also froze interest and penalties. They also only asked for a token monthly payment which has been in force for over 6 months.

Tesco froze all interest on my credit card while still allowing me to use it. I make regular monthly payments.

Got zilch from AIB.

Bank of Ireland cancelled all my credit cards, my €5000 overdraft and gave me a loan at 14% interest rate to clear what I owed on my accounts.

Halifax, Bank of Scotland were the worst to deal with. Refused to stop interest or penalties or accept reduced payments. So I have refused to deal with them anymore.

Thankfully, my mortgage is up to date and my creditors (bar one) are getting back some of the money they threw at me during the boom.

wmpdd3

i had basicallly the same experience as you, rbs were that worst to deal with.
Op, i have heard similar stories about leasing, seems to be very unregulated. I presume many business fold and never pay so the bank has precedures in place to make as much money as possible from those that do pay.
You need professional advice on how to deal with these guys. It may be well worth you while paying for advice to see if there is a process available that you dont know about. my heart goes out to you, its hard to remain positive when you feel screwed over.