Customers of a bill-payment and budgeting firm that closed last week will be treated “sympathetically” by utilities and banks when next month’s bills fall due, the National Consumer Agency (NCA) has said.
The closure of Home Payments last Wednesday left 2,300 consumers exposed to financial losses.
Fears that many already vulnerable people would be struggle to pay their bills this month as a result prompted the National Consumer Agency to convene a meeting with regulatory and industry bodies with a view to minimising the impact of the closure.
The meeting was attended by representatives of the Central Bank, the credit unions, the Irish Insurance Federation, the Irish Banking Federation, the Commission for Communication Regulation, the Commission for Energy Regulation, MABS, the Irish Credit Bureau, the NCA, and KPMG and Leahy & Co who are the Court appointed liquidators of Home Payments.
National Consumer Agency chief executive Ann Fitzgerald said customers needed to immediately contact all banks, insurance companies, utility companies and any other organisations they were making payments to through Home Payments. “The NCA has been assured that customers will be treated sympathetically and receive help to manage their payments.”
She said bills up to the end of July have been paid and that late next week the liquidator will issue a statement of affairs to customers advising them of their current status.
For people who are looking for an alternative bill paying service, the NCA said 50 credit unions in Dublin operate either bill pay services, where customers can pay bills through their credit union, or budget accounts. A list of Dublin-based Credit Unions that offer these services has been published on the agency’s website at www.nca.ie.
“We are strongly urging 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 service are not covered by the scheme,” Ms Fitzgerald said.
She said that customers of the company who are in financial difficulty should contact their local office of Mabs to get help with budgeting and managing their money if they need it.
“It is important at this stage that affected consumers look at all the bills that are outstanding or due to be paid and not allow themselves to come under pressure to pay any one provider that is demanding payment. “
