AIB has insisted that famous people who ask for debt write-downs do not get special treatment.
Officials are appearing before the Oireachtas Finance Committee this afternoon following media reports of a large debt write-down for former Kilkenny hurler DJ Carey.
The bank says 1,900 customers have had 90% of their debt waived - representing 1% of borrowers in financial difficulty.
AIB's Managing Director of Retail Banking Jim O'Keefe said everyone who finds themselves in trouble paying back loans goes through the same process – regardless of who they are.
“We have various lines of defences - as I mentioned a while ago - but I can categorically tell you, there are no special deals for special individuals coming to AIB,” Mr O’Keefe said.
“I do apologise to our customers who have been put through that torture, in that past week to 10 days, where they’ve been made to feel that they have been subject to something doesn’t happen to a wider group - I can assure you, that is not the case.”
'A very practical approach'
Speaking to Newstalk Breakfast this morning, Brendan Burgess, Founder of askaboutmoney.com, said debt write-downs are not unusual.
“All the banks take a very practical approach," he said.
"If somebody has no money and if somebody cooperates with the bank - for example... if somebody has investment properties and very large mortgages, and they agree to sell those investment properties, the shortfall is usually written off".
An AIB branch is seen in July 2012. Picture by: Sasko Lazarov/RollingNews.ieMr Burgess said the alternative is for an individual to file for bankruptcy.
"I can go down tomorrow and be bankrupt anyway," he said.
"We have the most favourable legislation for borrowers in this country - and for debtors.
"We had terrible legislation for years - you could be bankrupt and it lasted forever.
"Now bankruptcy lasts one year, so if you're in a situation that you stupidly got involved in property investment or you a ran a business that went bad... you can rock down to the Bankruptcy Court, and one year later you're out the other side".
Main image: An AIB ATM. Image: Sam Boal/RollingNews.ie
