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Dublin: 11 °C Thursday 20 June, 2013

AIB commits to working out deals for mortgage holders in arrears

The bank said today it has built up a staff of 300 people dedicated to supporting customers in difficulty.

Image: Eamonn Farrell/Photocall Ireland

AIB HAS COMMITTED to working out a deal with its 33,000 customers who are in arrears on their mortgages. The bank has said it will begin contacting mortgage holders over the next few months to encourage them to go to the bank to agree a deal on payment.

Niamh Hennessy of AIB told TheJournal.ie today that AIB is “committed to working with customers in arrears and our overall aim is to help customers return to a sustainable financial position.”

“AIB has trained more than 2000 people to assist those in financial difficulty and built up a team of more than 300 staff at a dedicated mortgage arrears support unit who provide support in working with customers in difficulty,” she said.

The long-awaited Personal Insolvency Bill was published in December, paving the way for better legal protection of mortgage holders who are in arrears. The legislation calls for banks to have more engagement with homeowners who are struggling to pay their mortgages and in some cases will allow for a write-down of debt.

Taoiseach Enda Kenny has said that the new personal insolvency agency will open its doors in early summer but that he hoped banks would work with mortgage holders who are in arrears before that time.

Related: Personal insolvency agency to open ‘early in the summer’ – Taoiseach>
More: Patrick Honohan: ‘Household financial distress is at unprecedented levels>

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Comments (31 Comments)

  • Well, in my case I got a mortgage with AIB through a broker a few years ago on a fixed rate.

    Recently, as money was getting ever tighter, we asked them if we could change from monthly payments to every two weeks. This would serve two purposes;
    1) We could budget our money better
    2) We would save money on interest as the capital was being chipped away

    They wrote back and basically said “No”. Apparently, the system they have in there doesn’t allow them to accept payments other than on the basis of what was initially set up.

    I was considering what to do, when low and behold, a letter comes in from AIB, advising that they now had staff dedicated to working with customers and their mortgages to make sure that they were happy.

    I therefore took the opportunity to contact them again and point out the apparent contradiction between rejecting my request and this recent letter.

    Again, they came back with a flat no.

    Aesthetically, they want to appear that they have changed. In reality, they haven’t.

    Reply
  • Working out a deal satisfactory to the Bank. They can afterwards say they “engaged”.The crucial matter is actually dealing with , and solving , the real problems

    Reply
  • Somewhere in my house I have a blank cheque book sent to me sometime ago by PTSB (Before 2008) The letter with it stated that I had been pre-approved for a loan. But instead of having to apply etc. all I had to do was write out cheques for whatever sum I liked up to I think it was 25K and not to worry they would just add the amount onto my mortgage. Crazy, Crazy Days, Crazy Banks!!!!!

    Reply
  • This isn’t simply a matter of writing off mortgages, and reposessing homes. What about all the people who purchased properties that are now worth 25-50% of the mortgage value? For the market to recover, all this false economy needs to be removed/resolved, before the economy can stabilise.

    Reply
  • I hope banks realise they are the reason that so many people are in trouble, not only with arears due to cuts in earnings but also the high unemployment rates, emigration etc. A write down of 30% would solve most problems and would allow people to spend in the domestic economy again, probaly helping the retail sector to recover and reduce unemployment. If banks reduced premiums by 30% it would increase spending power in the economy by over 4 billion a year for the next 20-25 years. Recession over.

    Reply
  • It’s a step in the right direction and hopefully a good base to build on.

    Reply
  • i am paying what i can,, when i can,, i have a kid in school so not easy just to pick up and go,, i have owned my home for ten years, and its an old council house, not a big state of the art house, i have done alot of work to, and hate to have to walk away from it, it is a home not a house, its ours and we love it, i cant rent as renting is less than my mortgage, and i will be in debt for years paying back if i walk away and they sell at auction as wont sell for half what i owe,, i will keep trying and get my kids into college and then i wont worry so much,, biggest worry is food,heat and elec bill,,,, and if i give up my house and rent and jobless,, who is going to support me ,, the tax payer,, meeeeee ,, i have paid taxes for over 30years and never asked anyone for anything,,, and i am not asking for anything now either,, but i think mortgages should be written down if house aint worth what we are paying,, we did not bring this onto ourselves, water charges and home taxes will kick me out involuntarily as no way can i cope with that,

    Reply
  • If banks dropped interest rates altogether and people just payed what they owed , we would be out of this mess. At least people pay their debts without getting write downs . If people struggle with that option then unfortunately their house would have to be taking off them as the cant finance their loan .

    Reply
    • That is a write down, that loan at 0% could be making money elsewhere.

      The banks need to start repossessing these properties, not writing off peoples loans..

      You can be sure i wont get any refund for renting for the last 10 years patiently awaiting for all the feckless eejits who bought properties at 7-10X their incomes to be thrown out into rental accomodation.

      This state is so immoral its not funny.

      Reply
    • Don’t worry Micheal.
      “You will get your day of glory”
      A lot of the “feckless eejits” as you call them, have either emigrated or committed suicide due to the actions of corrupt/criminal banks.

      Reply
    • Did you ever consider getting a job in a banks collections department Micheal?
      You would be well suited.
      You’d fit in just fine.

      Reply
  • Banks can’t currently initiate new repossession cases even of they want to (lacuna created from the Dunne J ruling in Start v Gunne and ors). Probably a good reason why they are choosing to negotiate with borrowers.

    Reply
  • Banks sponsoring sports is surly immoral at a time when less well off are scarifying basic needs to support luxury items like sport and corporate privileges to banks. The government are yet again taking from the poorest to give to banks. When it states that AIB or BoI sponsor such and such an event like the Photographer of the year or other sports etc it should at least acknowledge the fact that the public have ACTUALLY sponsored these events. The nurses etc taking pay cuts and the Garda stations closing to give money to the banks so they can play the big shots in their corporate boxes. As for mortgage holders they are bottom of the list for concern. Millions given to sports and yet people are hungry and some will be homeless.

    Reply
  • So instead of paying your debt at 0% just what u took out. It’s better not to pay at all ? Yeah that makes perfect sense, and everyone who bought a house is a “feckless eejit ” good comment .

    Reply
  • thank god,, i am so behind with my mortgage,, and was paying bi weekly,, then weekly,, then roof tiles came off house,, so paying builders there bill, and no mortgage payments,, as quite impossibe to pay mortgage, insurances,,, feed kid, elec bill, heat, and internet is not my bill before smart ass comes on,, pc aint mine either,, mine broke,,, oh and 100 euro for mocks,,, tv licence,, and nope dont have skye,, those were the days,, i aint complaining but we do need some help,,, and i wont rent back my house,, unless they give me oil heat,, i am to old for dragging coal around,,,, i have found bank helpful but they need to be told to help in better ways with the way country is,,, and all money gone into banks that we are paying back ,, should be help and not make us give up and go to council house,,,

    Reply
    • I can readily sympathise with your fear of going to live on a council estate. You would have no hope of getting a council house anyway. If you don’t believe me try filling in one of the 10 page forms that you get from the council office when you try to go on the housing list. The Co. Co. are on the gravy train along with the government ministers, sitting in their offices twiddling their thumbs, looking at their watches, waiting for their lunch and coffee breaks.

      Reply
  • So if debt relief happens, even for some, can I go ahead and get a tax break and rent relief for not purchasing a house?

    Reply
    • joohn, rent relief is given to so many,, and they work,,,,, i lost my job,, i am nearly 50,, got 2 kids, bought a house 10 years ago,, i cant pay mortgage, mortgage insurance, house insurance, elec, heat and food,, so am i better off going on the system and getting them to pay for me,, i dont want that,,, i dont want council house,, i dont want to go to homeless shelter,, i want a job,,, i have advertised, walked the streets, applied for every job going, everything,, i have so many cv its getting beyond a joke,,,it really is hard on some people who want to work, who does not want to be on unemployment as it does not cover bills,,, why do people get rent allowance and no mortgage allowance,, this is our system showing its wrong,, i put my life savings down on my house,, i never asked anyone for anything, have always worked,, but they will pay for me to move into a flat,, my house i tried to sell and was offered alot less, i went to bank with the offer,, but i would still be held responsible for 30, ooo,,, lol,, i would have sold and moved to england,, but cant do that , i can rent my house for less than my mortgage,, i cant just move as a renter can,, rent allowance is my town is wonderful,, big 5 bedrooms houses to a couple with one kid,,, our council spending money on stone bollards a thousand a piece,, iron gates,, all over the place,, iron gates outside tesco,, they are just spending spending spending while our shops lay vacant,, guess they have to spend or not get next year is the policy for government officials,,, i am sick of it,,, i would move if i could,, i would like to have some heat besides xmas day and few others that we froze and pipes broke,, would love to be able to fix my door that is swinging from hinges half off,,, but i cant unless i go begging,, and that i wont,, i will get a job,, i am an honest hard worker all my life,, and until jobs come back to kerry their is not much one can do but sympathize with next person you meet that just lost theirs

      Reply
    • It’s not my fault though, and I don’t get rent relief on my rent. I choose not to buy, so why should someone get debt relief and handouts just because they bought a house?

      If you can’t afford it, give it up and move into rented property, that’s how it works.

      “until jobs come back to kerry” – why don’t you stop waiting for jobs to ‘come’ to you and be more proactive – maybe you need to sell your house and get a job somewhere else like Dublin, even when you pay off the 30k that you would owe on the house you would still be in a better position in a few years time.

      Reply
    • Tell me Joohn Riche?
      Just how much did you spend into the Irish economy last year
      on
      Household Charges,
      2nd Property Taxes,
      Home Insurance,
      Painting/Decorating,
      Maintainance,
      Service charges,
      Boiler and Gas Appliance Maintainance,
      Furniture/Electrical Appliance/Furnishings Repairs, Maintenance, Replacements and Servicing,
      Garden Maintainace,
      Gutter Cleaning and Power Washing,
      Contract Cleaning,
      Chimney Cleaning,
      Building levies,
      Legal Fees,
      Stamp Duty,
      Surveys,
      Valuation Fees,
      Co2 Monitors,
      Pest Control,
      Property Damage Not Covered By Insurance,
      Damage Due To Pyrite, Subsidence, Flooding Etc Not Covered By Insurance Or Homebond.
      General up keep etc.
      Not To Mention Physical and Psychological And Property Damage Caused By The Anti Social/Violent Renter Next Door.
      Etc
      Etc
      Etc……..?

      Reply
    • Not to Mention
      Interest Rate Hikes From Your “Friendly” Reckless Corrupt/Criminal Banker.
      Bank Fees.
      PPI.
      Mortgage Life Cover.
      Etc
      Etc
      Etc….?

      Reply
    • Don’t be such callous insensitive person. Here are people being honest and opening their hearts about their situation which is dire and having sleepless nights wondering how they’re going to feed clothe and keep their children warm not to mention the mental anguish of telling their family they have to move away from their friends school and the surroundings they have grown up with into a unfit for purpose hovil.
      This is real stress and depression the kind that kills. Grow up please you infuriate me.
      I would take Guess you don’t have children because one thing Children give you is the sense of compassion which you sir are completely devoid of.

      Reply
  • Bit early for April Fools Michelle?

    Reply

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