Banks starting to set targest for ‘going legal’

(Original article appeared in the Irish Sun)

For thousands of property investors the time has finally come to assume the position, AIB have directed the debt collections teams in both AIB and EBS to have at least 10% of their arrears cases ‘gone legal’ by the end of April The Irish Sun has learned.

This is a massive departure from the idea of ‘forbearance’ which reigned supreme in the recent past. Customers will now be informed that there is no option for ‘interest only’ something that up to now has kept huge swathes of troubled borrowers afloat.

Senior sources in AIB have said that ‘there are no targets, there will never be any targets’ but the collectors on the coal face of this are saying the exact opposite.

The bank will honour existing interest only agreements, but any new applications for paying only interest will have to be proven to be only a short term ‘stop gap’ measure, and those who have already availed of a 12 month interest only period will be refused subsequent extensions which might provide vital …

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