AIB figures show 1,900 people received 90% debt write-downs

James Cox

Around 1,900 AIB customers who have experienced difficulties repaying their loans have had their debt written down by over 90 per cent as part of final settlements.

The bank is before the Oireachtas Finance Committee today, in the wake of the agreement reached with former Kilkenny hurler DJ Carey.

Jim O'Keeffe, managing director of retail banking at AIB, will tell TDs and Senators that around 150,000 customers have been supported by deals with the Financial Services Group, which was established more than 10 years ago.

Mr O'Keeffe will tell the committee: "The number of borrowers, other than those who went through a bankruptcy or insolvency process, who have received a reduction of over 90 per cent of their loan amounted to circa 1,900. Compared to the circa 150,000 customer resolutions already referenced, this represents a ratio of just over 1 per cent."

He will also "robust criteria" is required for any debt write-down.

Mr O'Keeffe will also tell the committee: "We have been aware, obviously, of recent commentary about our approach to supporting customers in difficulty and the policies underpinning same. Unfortunately, many aspects of this commentary have been incomplete and have not presented the full picture. We have maintained our position that we are not enabled or entitled to discuss the details of any particular account regardless of the historic or current relationship with the customer involved.

"However, we have also reaffirmed that the bank has a proven track record in supporting customers in difficulty and, as a regulated entity, has a robust governance and policy framework in place that deals in a consistent and equitable manner with customers whose accounts become challenged. That framework prioritises restoring customers to a sustainable relationship with the bank on a consensual basis."

It has raised questions as to why other customers in mortgage distress did not receive similar treatment.

Aontú leader Peadar Tóibín will be among those quizzing AIB representatives - he said they have a duty to provide answers.

Mr Tóibín said: "So many people who were sick, who had cancer, who were in real trouble with the loss of jobs through no fault of their own, were pursued for every cent.

"I'm thinking of the people in Donegal who have serious mortgages on buildings that really are not more than a pile of mica rubble at the moment, and yet they're not receiving debt relief in relation to this."