AIB sold a portfolio of delinquent mortgages to a Galway-based company, Everyday Finance.
The bank said the portfolio included 620 primary residential mortgages, 95% of which defaulted more than five years ago.
The portfolio would have a book value of 150 million euros, but the Bank did not disclose the discount applied for the sale.
It is understood that the sale has received the approval of the Central Bank and the Ministry of Finance.
Everyday Finance is part of a consortium of credit management companies called the Home Solutions Initiative. It was authorized by the Ministry of Housing in 2018 to operate the rental mortgage program.
In a statement released this afternoon, the Home Solutions Initiative welcomed the sale. It says its member companies offer a range of solutions “to help clients solve their mortgage difficulties” with the aim of “helping clients stay at home.”
The AIB customers concerned will be informed by mail of the sale. They will still be covered by the Central Bank’s consumer protection codes and regulations. The bank says customers need not take any action following today’s announcement.