Home Payments customers assured by agency

BANKS, insurance and utility companies have agreed to deal sympathetically with customers who have missed payments as a result of the closure of an unregulated firm which consolidated its clients bills and made payments on their behalf for a fee.

Home Payments Ltd, a household budgeting firm which folded last week, was set up in Dublin in the 1960s and had evolved into a nationwide budgeting and bill-paying service, consolidating bills into one fixed weekly or monthly payment.

The firm had 2,300 customers. More than 1,500 of those are owed less than €3,000. Approximately 700 customers are owed between €3,000 and €10,000, while 23 customers are owed in excess of €10,000.

The National Consumer Agency (NCA) has called a meeting with all bodies involved to come up with a plan for them.

Head of the NCA Ann Fitzgerald said customers of Home Payments Ltd need to act now and immediately contact all banks, insurance companies, utility companies and any other organisations they were making payments to through Home Payments Ltd and alert them to the fact that they are a Home Payments customer.

She said the NCA has been assured that customers will be treated sympathetically and receive help to manage their payments.

All bills up to the end of July have been paid and next week the firm’s liquidator will issue a statement of affairs to every customer advising them of their status.

Concerns have been raised over unregulated money lending, debt relief and bill consolidation companies.

Ms Fitzgerald urged consumers to ensure that any financial service they use is regulated.

“Any savings consumers have with banks, building societies or credit unions are covered by the deposit guarantee scheme, up to an amount of €100,000 per person, per institution. Any savings held with unregulated budgeting or bill payments services are not covered by the scheme,” she said.

Some 50 credit unions in Dublin operate either bill pay services, where customers can pay bills through their credit union, or budget accounts.

In addition, some banks operate accounts that help consumers smooth out their bill payments over the year.

Home Payments customers in financial difficulty should also contact their local office of the Money Advice and Budgeting Service to get help with budgeting and managing their money if they need it.