Savings feared lost as firm closes

THOUSANDS of euro in savings are feared lost after Dublin-based Home Payments went bust.

The firm operated as a savings institution and paid bills for people from their savings. Customers would pay direct debit every month or would pay a collector who called to their door.

Staff were told on Tuesday evening that the company would cease operating with immediate effect.

However, that day collectors working for the company had gone door-to-door collecting payments from customers who were unaware of the difficulties at the firm, according to callers to yesterday’s Liveline programme on RTÉ. It is believed that hundreds of customers could be affected.

The company blamed failed investments in the property sector for the closure and say they are in discussions with lenders to restructure their debt.

“The decline in values in this sector has had a significant negative impact on the value of these investments. The company has been in discussions with its lenders to restructure its repayments,” a statement said.

The company said it is acting to protect its customers and to secure customers’ deposits and it is shutting down operations immediately.

“The directors have also been advised that this course of action is in the best interests of all their customers and creditors,” said the statement.

According to the latest accounts filed, Home Payments Limited recorded a loss of €129,525 in the year to the end of March 2010.

The directors said they expected bank facility terms to continue “as per their existing structures”.

“The company has not had any liquidity problems to date and the directors are satisfied that there are sufficient cash and other reserves to enable the company to continue to trade, as evidenced by the strong net asset position at 31 March 2010 of €2,822,486,” the accounts read.

The company called itself Ireland’s “leading household bill management company” and charged people €5.75 a week for their services. It also charged a “once-off fee” for a full consultation of €25 and a “once-off” set-up fee of €60.

The National Consumer Agency said customers of Home Payments should contact their bank to cancel any direct debits to this company.