AIB rejects blame for Home Payments insolvency

AIB is denying that it is to blame for the insolvency of Home Payments - a bill payments and services company which went bust earlier this month.

The High Court heard today that the business - which was based in Rathmines, Dublin - owes its customers around €6m.

Judge Mary Laffoy officially wound up Home Payments this evening, appointing liquidators to the family firm which was set up in 1963 to help households manage their bills.

Provisional liquidators had already been put in place by the High Court earlier this month following a petition by the company directors.

However this evening AIB's lawyers took issue with a claim by one of the directors and said it was untrue that it was the bank's fault Home Payments went into insolvency.

The bank, which is owed €4m by the business, said it refused to allow the firm withdraw €2m on August 3 solely out of concern for Home Payments' 2,300 customers.

The court was told that thousands had to be drawn down from that account in order to pay ESB and other utility bills.

Home Payments disputes some of the matters raised by AIB but the case has been put back until October.