NCA warns Home Payments customers to cancel direct debits

The National Consumer Agency (NCA) today said customers of Home Payments Ltd. should immediately contact their bank to cancel any direct debits to this company.

The Dublin-based firm, which helped households to budget and spread out payments, said today it has ceased operating.

The directors of the Rathmines organisation blamed failed investments in the property sector for the closure, and say they are currently in discussions with lenders to restructure their debt.

The NCA warned that while Home Payments Ltd has ceased trading, the company is not in liquidation and until such time as a liquidator is appointed, customers of the company will not know how their funds will be treated.

"This is an appalling situation for the consumers involved, where they paid money to a company so that they could manage their household budget," said NCA Chief Executive Ann Fitzgerald.

"This is a clear case of an industry that urgently requires regulation so that clients’ funds are legally required to be ring-fenced and therefore protected in cases where a company ceases trading.

"This is a critical issue and applies not only to companies such as Home Payments Ltd., but also to the growing number of debt management companies, Christmas clubs and savings clubs.

"At present, none of these companies require regulation and we are calling on the Government to address this situation as a matter of urgency."

The NCA also called for Government to urgently legislate for the regulation of all companies that take money from consumers for debt management or payment and budget management.

“We strongly urge any consumer who needs help managing their budget to get advice before approaching any private debt or budgeting management company," Ms Fitzgerald said.

"The NCA has extensive resources available on their website, www.itsyourmoney.ie, to help consumers manage their budget and plan their finances."

Consumers can also get free, independent and confidential debt advice and money management services from the Money Advice and Budgeting Service (MABS), which is funded by the Department of Social and Family Affairs.