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Repossessions are last resort – bank chief

AIB chief executive David Duffy has told Labour TDs that repossessions of the houses of the bank's 33,000 customers in mortgage arrears are a "last resort".

He spent over an hour answering questions at a special meeting of the Labour parliamentary party in Leinster House. While he said repossessions of houses were a last resort, he made it clear the bank was not ruling them out.

He told them that it might have to be used for some people who were "very difficult" and would not pay – as opposed to those who could not pay.

On the slow take-up of split mortgages – where the bank agrees to set aside a lump of the mortgage for a number of years to cut the cost of monthly repayments – Mr Duffy said AIB had made 1,400 such offers to customers but less than 30pc of them had been accepted. He said customers had been waiting to see if the personal insolvency legislation was going to provide them with a better option – but were now more likely to sign up to the deal.

Irish Independent