TDs have challenged AIB on its claims that a “consistent approach” is being applied to customers in financial distress after revealing how constituents have been in contact asking why they have not been afforded significant debt write-down deals.

AIB insisted “there are no special deals for special individuals” when it comes to its debt write-down policies.

The bank said it has repossessed eight family homes since 2017 and has a “genuine and consistent approach” when it comes to dealing with customers who are in financial trouble.

AIB appeared before the Oireachtas finance committee today and was asked whether the bank had been applying “one rule for people who are wealthy and famous and another rule for the rest of us”.

While AIB said it cannot comment on individual cases for legal and confidentiality reasons, it acknowledged that recent commentary on its debt write-downs has “caused a lot of heartbreak” for customers and that a number of people have been in touch with the bank.

It comes as it was revealed 1,900 people have received debt write-downs of more than 90pc since 2015.

However, when questioned how much debt those people were in and whether they were builders, property developers or farmers, the bank said it did not have this detail to hand and would have to revert at a later date.

The bank was asked to appear before the committee after it was revealed how Kilkenny hurling legend DJ Carey had a significant write-down on his €9.5m debts.

AIB received about €1.7m from the sale of Mr Carey’s properties in Mount Juliet in Kilkenny and the K Club in Kildare, and the bank subsequently agreed a payment of €60,000 in full and final settlement of the remaining debt — amounting to a write-down of around 80pc.

AIB said it has a consistent and robust approach when it comes to helping customers in debt.

However, TDs questioned whether consistency is being applied across the board.

Fianna Fáil TD Robert Troy said he was aware of constituents who were members of a three-way partnership.

They bought some sites, developed them and sold them on.

At the time of the crash, they owed AIB €750,000 and engaged extensively with the bank.

“I may have made representations at the time on their behalf. At the time they offered to pay €400,000, which is 52pc of what was owed and that was rejected outright,” Mr Troy said.

“All offers were rejected outright and that loan book was sold to a vulture fund who subsequently sold the properties for a lot less than what was originally offered by the developers.

"They looked on at the story over the last fortnight and wondered what they did wrong, that they could not achieve a similar arrangement.”

Fine Gael TD Bernard Durkan said he had been approached by a number of constituents who have questioned why some people appear to have received significant write-downs, while those who owe far less money do not get the same deals.

“Special deals for special people undermine the work we do for constituents who rely on us to speak up for them,” Mr Durkan said.

“It makes life difficult for those who tried to make a case on behalf of small operators who believe they should be entitled to the same treatment as bigger borrowers”.

Sinn Féin finance spokesperson Pearse Doherty said he has emails from people whose homes have been reduced to rubble because of the mica scandal, but they still have to pay a mortgage.

“I know a lot of people don’t live in Donegal and think Mica is over. We have had bulldozers come in and tumble family homes.

“There are still mortgages on those family homes. How do you explain to an individual that they have to pay a mortgage for what is now rubble on where their family home once was, but yet AIB is able to write off millions of euro for other individuals?”

AIB’s head of retail, Jim O’Keeffe, said: “The public want to know if we have a special deals arrangement. We do not. We deal with every case consistently and fairly.

"We have a regulator who quite correctly monitors our activity. I can categorically tell you there are no special deals for special individuals coming to AIB. I apologise for customers who have been made feel they weren’t subject to something that happens for a wider group.”

Mr O’Keeffe said the bank had also agreed 300 mortgage-to-rent deals where financially distressed borrowers remain in their homes as tenants with the bank taking ownership of the property.

People Before Profit-Solidarity TD Mick Barry claimed there was a bias in the bank’s approach to writing off debts for bigger borrowers because the sums owed were larger.

He quoted the old adage, that “if you owe €5,000 and can’t pay it back, you have a problem, but if you owe €5m and can’t pay it back, it’s the bank that has the problem.”

“Despite the fact no laws are being broken and everything is being done according to the book, the little guy is losing out due to the size of her debt,” he added.

Mr O’Keeffe said AIB had written off a total of €3.5bn in debts between 2015 and 2021.

Mr Doherty asked the bank about its policy on windfall clauses, which mean that if a person comes into significant income after a write-down, they have to alert the bank and put it towards their debts.

The Sinn Féin TD asked what happens if the bank learns that the person came into money but didn’t disclose it.

Mr O’Keeffe said the windfall clause usually lapses after a period of five years, but if a borrower failed to disclose during the five years that they came into money, that would amount to a breach of contract.

He also told the committee there are "robust criteria" for any debt write-down.

He said they are based on individual circumstances and a full disclosure of a customer’s financial affairs including assets and income and “any other relevant information required by the bank”.

Other criteria include the customer demonstrating a willingness to meet their “contractual obligations” while “maintaining a reasonable and benchmarked lifestyle".

Proposals must also address all of the borrower’s obligations with the bank and take into account any third-party debt.

The level of sustainable and unsustainable debt will be determined by the bank “based on an assessment of the borrower’s affordability”.