AIB personal loan problems

Messyfinance19

New Member
Messages
4
I need some advice on how to sort this all out, please bear with me.
Borrowed €10k in 2016 over 5 years, repayments perfect until May 2018. I was actually 3 months ahead in repayments. I was involved in an accident and was out of work sick for 9 months and don’t get paid sick leave so the tedious waiting game that is illness benefit took months. So I fell into arrears and kept the bank informed at all times. Other half works so mortgage and bills were paid but he wouldn’t help me with my loan or anything so when illness benefit finally came thru I had to keep the grocery shopping, car and kids going. My 4 year old car is finance free so I am not an idiot.
So, AIB wouldn’t put a payment plan in place for me unless all arrears were paid & I was only able to do that 2 weeks ago and when I asked to go on DD they said no my loan is a bad debt with customer recoveries and I have to deal with them??, it’s a joke arrears cleared and I never ignored them. Also I got a letter off them last Nov that I over paid €1,500 in interest, that would have paid the arrears then, but they refused and put it off the balance and Alis refused to give me the money I had already paid them. They then closed my current account with no notice then after stress and horrible calls they opened me a new one but it’s restricted and my once excellent credit rating is shot and they are being horrible. I wrote them a letter last week time lining everything and officially complaining as a customer of 30 years. Can someone advise me on how I can get this out of customer recoveries and re negotiate. I am so upset. Sorry for the long post!.
 

elcato

Moderator
Messages
3,087
Well you have done the first thing which is make a complaint in writing. How much is outstanding ? What are they proposing you do to pay the remainder if they are refusing to put you on a DD ? Unfortunately, whether you like it or not, your missed payments for (possibly up to) 9 months so they are correct in passing you to their recovery section. What reason did they give for closing your current account ? Who told you that if you cleared the arrears you would get a payment plan ? Was it in writing ? If on the phone you can still request a copy of the recorded phone call (if it was which I'd imagine it was). You need to stay calm and only deal with these people in writing from now on or if they agree a deal insist on it in writing.Keep making monthly payments though as you will rack u0p interest charges by not doing so.
 

Allpartied

Registered User
Messages
42
Unfortunately, this is part of the "banking by algorithm" which has infested modern institutions. Despite all the pretty pictures, clever advertising, slick marketing, where actors pretend to listen to all your personal issues and tailor a solution, just for you, the banks are only interested in the bottom line.
Actually finding a human being, someone who can listen to all of your personal circumstances, who can deal with your issue, face to face is really difficult with modern banks.
Ask to speak to your local bank manager, ( I think they still exist) and sit down and go through everything with them. Tell them if you don't get a face to face meeting with a senior decision maker, you will complain to the Financial Ombudsman and seek compensation for unnecessary stress.
 

Messyfinance19

New Member
Messages
4
Balance outstanding is €6k. I now noticed today that the transaction log for the loan on my app is gone and just the outstanding balance is showing. I was told over the phone last July I could set up a payment plan with no mention from the customer services rep that the arrears had to be cleared before they would allow a repayment plan. I discovered this when I rang up looking for the dd mandate. My old current account was just closed on me and it was a shock as I got no warning by phone or in writing only found out when my card was rejected at atm when I checked online my current acct balance was 0.00 with a line on it “to close account”. I then had to inform child benefit and illness benefit I had no account to get my payments in. It went on for 2 weeks I had nothing. They even lied that they wrote to me they certainly did not. I was home all the time and got the post daily. I paid off the arrears with my first months salary when I went back to work and I want to repay and get back to normal, never hid from them and I have been treated appallingly. Also the matter of overpaid interest €1,500 that they just took off the balance when at the time it would have cleared the arrears why would they refuse after all I had physically paid that interest it was my money. I sent the letter last Thurs and no response or call yet. I am going to have to move banks to protect my salary etc they could do more damage. I can’t understand why they won’t engage with someone that took responsibility and wants to pay and cleared the arrears. I also sent a copy of the letter to the financial ombudsman. Hope it helps me.
 

Bronte

Frequent Poster
Messages
13,292
Does your credit rating matter?

I’m surprised your husband didn’t help you with the loan.

If your salary is going into a closed account how do you get access to the cash?
 

Messyfinance19

New Member
Messages
4
No I have a new current account now with visa debit and back to normal that was opened two weeks after they closed the other one I had for 20 years. I am fine with daily banking and salary but intend changing banks. My husband thinks because he pays the mortgage his pay outs stop there and leaves the rest to me. I should never have went into arrears he could have helped me out until my illness benefit kicked in. I am worried about my credit rating as I will have college fees next year and some works needs to be done on the house and there is no way i will get a loan now when I always had no problem as I am very careful and never miss payments. The accident turned my life upside down hit by an uninsured driver. Nightmare.
 

Bronte

Frequent Poster
Messages
13,292
So much for ‘in sickness and in health’ .

Just forget about doing anything on the house. Personal loans are a very expensive way to borrow. Do you also need to borrow for the college costs?
 

Messyfinance19

New Member
Messages
4
Not sure yet my oldest starting college next year so it will be expensive so I am saving the child benefit in the credit union from this month and hoping to build on that for when I need it. I have never borrowed from the CU before just saved for the likes of Xmas and holidays. I will do the house a job each month for now but my main concern is the banks refusing to put my loan back to the branch out of customer recoveries with the arrears cleared and my commitment to a new dd. They said standing order only and have not addressed the fact that I overpaid interest of €1500 & they just took it. Until this loan is cleared my credit rating is shot and it will be 5 years till I am clean again. I think the bank are being unreasonable especially as I never ignored it and contacted them the first
Month I knew I couldn’t meet the repayment and engaged regularly. My wrist was broken, cracked cheek bone and shoulder damage in the accident which had me off work for so long. It will be years before I see anything in relation to this due to the driver who drove head on into me was uninsured.
 

jackswift

Frequent Poster
Messages
210
Unfortunately, this is part of the "banking by algorithm" which has infested modern institutions. Despite all the pretty pictures, clever advertising, slick marketing, where actors pretend to listen to all your personal issues and tailor a solution, just for you, the banks are only interested in the bottom line.
Actually finding a human being, someone who can listen to all of your personal circumstances, who can deal with your issue, face to face is really difficult with modern banks.
Ask to speak to your local bank manager, ( I think they still exist) and sit down and go through everything with them. Tell them if you don't get a face to face meeting with a senior decision maker, you will complain to the Financial Ombudsman and seek compensation for unnecessary stress.
Spot on, I’m applying for a business loan since last month was told I’d have a decision in 48 hours, 1 month on ringing every day and they are still messing around with it. The time has passed now for what I wanted to purchase, well done AIB.
 
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