AIB CC Debt

gline · 23-08-2011 3:58am #1

I had a credit card with aib when i was working, now trying to repay it on social welfare, I agreed a set payment each month with them and all was going fine, but I missed 2 non-consecutive payments, now they say it has been passed to a solicitor. Is there anything they can actually do? I still intend to pay the set amount, I just missed 2 payments as I literally didnt have it those months, but have continued after that to pay the agreed amount.
What are the chances of ending up in court and if so is there anything the courts can do, as I am on social welfare and every penny is outgoing on bills etc.
Anyone any experience with the same issue? How should I approach this?

matt70iu · 23-08-2011 10:53am

Hi

I had a similar experience with Bank of Ireland. I was on welfare and offered a payment I could afford. They didn't except it, but I kept paying that amount anyway.

They had already refered it to a solicitor who had sent me a letter saying they were commencing legal procedings against me. Heard nothing, got a job a few months later and incresed the payments.

Still haven't heard a thing and all this started 2 years ago. I think once you make an effort, there's a good chance it won't go to court.

Another thing to be aware of is social welfare does not count as income, so if the bank took you to court and you proved you were on welfare; the judge would more than likely throw the case out and even order the debt written off.

The bank know this, so are unlikely to go down that route while you are not in employment.

Hope it all works out, best of luck!

gline · 23-08-2011 12:24pm

matt70iu wrote: »

Hi

I had a similar experience with Bank of Ireland. I was on welfare and offered a payment I could afford. They didn't except it, but I kept paying that amount anyway.

They had already refered it to a solicitor who had sent me a letter saying they were commencing legal procedings against me. Heard nothing, got a job a few months later and incresed the payments.

Still haven't heard a thing and all this started 2 years ago. I think once you make an effort, there's a good chance it won't go to court.

Another thing to be aware of is social welfare does not count as income, so if the bank took you to court and you proved you were on welfare; the judge would more than likely throw the case out and even order the debt written off.

The bank know this, so are unlikely to go down that route while you are not in employment.

Hope it all works out, best of luck!

Thanks for the info, I didnt know social welfare wasnt counted as income to pay debts. Is that actually true that your debt can be written off in court? If so why would a bank even threaten court proceedings?

chris85 · 23-08-2011 12:46pm

gline wrote: »

Thanks for the info, I didnt know social welfare wasnt counted as income to pay debts. Is that actually true that your debt can be written off in court? If so why would a bank even threaten court proceedings?

Court dont have authority to write off debt. They first rule if you owe the money or not (judgment)

The bank can then enforce the judgment by getting a court order for payments. If this does happen you must pay as per orders of court.

Contact MABS if you are in bad way and try negotiate with the solicitors to see if can work out something.

Generally the bank have a lower limit they wont accept below but the solicitors will have a much more flexible instruction to accept repayment plans.

gline · 23-08-2011 12:54pm

chris85 wrote: »

Court dont have authority to write off debt. They first rule if you owe the money or not (judgment)

The bank can then enforce the judgment by getting a court order for payments. If this does happen you must pay as per orders of court.

Contact MABS if you are in bad way and try negotiate with the solicitors to see if can work out something.

Generally the bank have a lower limit they wont accept below but the solicitors will have a much more flexible instruction to accept repayment plans.

But if social welfare is not seen as income then there cant be a court order to pay? As technically I have no income as seen by the court?

The thing is I already agreed a set amount to pay back (i am with a debt management agency already, not mabs) and I have been paying it for years like that, I just missed 2 payments as I didnt have it, but am still paying the set amount. But because of the 2 missed payments it seems, they are now going down the solicitor route.

matt70iu · 23-08-2011 2:17pm

gline wrote: »

Thanks for the info, I didnt know social welfare wasnt counted as income to pay debts. Is that actually true that your debt can be written off in court? If so why would a bank even threaten court proceedings?

Mostly to try and get you to pay if you have the means before they take you to court. There are a lot of people out there who can pay, but choose not to.

As a result, those of us who are in genuiene hardship get painted with the same brush. If you can prove to the bank that you are on welfare, it helps your case also.

BOI's solicitors asked for proof from me, so I scanned and emailed a copy of the receipt the post office give me when I collect my payments. Heard nothing from the solicitors after that. Even when I increased my payments after finding steady employment.

gline · 23-08-2011 2:27pm

matt70iu wrote: »

Mostly to try and get you to pay if you have the means before they take you to court. There are a lot of people out there who can pay, but choose not to.

As a result, those of us who are in genuiene hardship get painted with the same brush. If you can prove to the bank that you are on welfare, it helps your case also.

BOI's solicitors asked for proof from me, so I scanned and emailed a copy of the receipt the post office give me when I collect my payments. Heard nothing from the solicitors after that. Even when I increased my payments after finding steady employment.

Thats a good idea, If I get a letter from a solicitor, il send them a registered letter back explaining the situation with a scanned copy of a solcial welfare recipt, its all I can do I suppose, its not as if I dont intend paying, I'm still going to pay the agreed amount I have been, so they cant say I'm making no effort to repay. The weird thing is I have other debt with AIB also (not credit card related) and they have no problems with the amount I'm paying back (even though I missed the 2 payments on those aswell), its just the CC debt they targeted.

matt70iu · 23-08-2011 2:57pm

Yeah that doesn't surprise me at all. The banks tend to see their credit card depts as a completely separate entity.

In my case, boi were quicker going the legal/solicitor route with a term loan that I had. The credit card came much later.

Just keep paying what you can, and always keep up to date with any letters they send you. As the saying goes, you can't squeeze blood from a stone, so as long as you pay what you can, you should be able to keep it out of court.

If they do take you to court, make sure you go to plead your case, otherwise, you may end up with a court order for an amount you cannot afford:)

gline · 23-08-2011 4:05pm

matt70iu wrote: »

Just keep paying what you can, and always keep up to date with any letters they send you. As the saying goes, you can't squeeze blood from a stone, so as long as you pay what you can, you should be able to keep it out of court.

If they do take you to court, make sure you go to plead your case, otherwise, you may end up with a court order for an amount you cannot afford:)

Will do. Thanks again for the info

chris85 · 23-08-2011 4:12pm

gline wrote: »

But if social welfare is not seen as income then there cant be a court order to pay? As technically I have no income as seen by the court?

The thing is I already agreed a set amount to pay back (i am with a debt management agency already, not mabs) and I have been paying it for years like that, I just missed 2 payments as I didnt have it, but am still paying the set amount. But because of the 2 missed payments it seems, they are now going down the solicitor route.

Welfare does count. Everything counts. The judge will make the call. They may order nothing be paid but more often than not they order a small payment based on your means be paid.

Also if the court orders nothing to be paid it doesnt mean you dont owe it anymore so the bank could register the judgment against your property (judgment mortgage) if they havent done already.

gline · 23-08-2011 4:38pm

chris85 wrote: »

Welfare does count. Everything counts. The judge will make the call. They may order nothing be paid but more often than not they order a small payment based on your means be paid.

Also if the court orders nothing to be paid it doesnt mean you dont owe it anymore so the bank could register the judgment against your property (judgment mortgage) if they havent done already.

Ive no mortgage, im renting. So is social welfare counted as income or not in court? conflicting comments here. Because if it isnt then the judge cant ask you to pay anything as technically you have no income. Obviously I realise it doesnt mean the debt is gone just because the judge might order nothing to be paid, the contract that i signed would still be in place to be paid at a future date. Im not that worried about court, because as I mentioned I am already paying a small amount each month anyway, so what can the judge say then? "continue paying it", I really dont think there is much aib can do, as said you cant squeeze blood from a stone, if there is no money there then they cant take it and I dont own any property, so that cant be used.

chris85 · 23-08-2011 7:56pm

gline wrote: »

Ive no mortgage, im renting. So is social welfare counted as income or not in court? conflicting comments here. Because if it isnt then the judge cant ask you to pay anything as technically you have no income. Obviously I realise it doesnt mean the debt is gone just because the judge might order nothing to be paid, the contract that i signed would still be in place to be paid at a future date. Im not that worried about court, because as I mentioned I am already paying a small amount each month anyway, so what can the judge say then? "continue paying it", I really dont think there is much aib can do, as said you cant squeeze blood from a stone, if there is no money there then they cant take it and I dont own any property, so that cant be used.

It is but no solicitor will seek a court order for someone on social welfare as judge wont entertain it much. social welfare does count as income but the judge will look and each individual case and determine if the person can pay a certain amount.

I would advise to see MABS. They have a protocol in place with the main banks and this would apply to their agents/solicitors to follow.

They have a long waiting list to contact them and get an appointment. Write to the solicitor and advise them you will continue with the payment you are making each month and review the matter with MABS when you get in with them.

gline · 23-08-2011 10:52pm

I havent been contacted by the solicitor yet, just aib saying that they have passed it to their solicitor to start proceedings. As soon as I do I will contact them. Also I am already with another debt management company (not mabs), so no need to get mabs involved. I called the debt management company today and they told me to send them any correspondance from the solicitor and they will contact them acting in my behalf. Its a bit of weight off my mind knowing that in all likelyhood IF (and thats a big if) it gets to court the judge wont force me to pay something unreasonable or demand full payment once I am still paying the same sum I have been for the past few years.

chris85 · 24-08-2011 4:16pm

gline wrote: »

I havent been contacted by the solicitor yet, just aib saying that they have passed it to their solicitor to start proceedings. As soon as I do I will contact them. Also I am already with another debt management company (not mabs), so no need to get mabs involved. I called the debt management company today and they told me to send them any correspondance from the solicitor and they will contact them acting in my behalf. Its a bit of weight off my mind knowing that in all likelyhood IF (and thats a big if) it gets to court the judge wont force me to pay something unreasonable or demand full payment once I am still paying the same sum I have been for the past few years.

You will be fine. You are handling the matter fine paying as best as you can which is all you can do. A judge wont order something to be paid which is beyond your means.

AIB CC Debt

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