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High Court approves €1.2m interim payout to Home Payments customers

The company had approximately €2.1 million in its accounts when it went into liquidation last year, and owed in the region of €6.7 million to customers.

Image: infomatique via Creative Commons/Flickr

THE HIGH COURT has approved an interim payment of €1.2 million to be distributed to the customers of the now-defunct Home Payments Ltd, which went into liquidation last year.

Joint Liquidators Eamonn Richardson of KPMG and Eamonn Leahy of Leahy & Co were appointed to the household and family management company after it collapsed and are currently in the process of commicating directly with customers affected by the failure of the business.

When Home Payments Ltd folded, it owed customers somewhere in the region of €6.7 million but had approximately €2.1 million in its accounts. Last year, the National Consumer Agency gave a grim warning to cumstomers, saying that “potentially thousands upon thousands” of domestic savers and people under financial duress may have seen their savings totally wiped out by the collapse of the company.

However, yesterday it was revealed that customers may receive between 20 per cent and 25 per cent of their money back.

In a statement released today, the Joint Liquidators said it was their view that the €2.1 million constituted funds held on trust for the customers of Home Payments.; the High Court approved a sum of €1.2 million to be paid now to customers as an interim distribution of funds from the trust monies.

The Court ruled that the interim payment will be on a pro rata basis “in that each customer should receive their due proportion of the monies in accordance with what monies were owning to them at the time of the liquidation of Home Payments Limited 12 months ago”.

The final share of the leftover funds to customers will be decided by the High Court following an examination of liquidation costs, the statement said. In relation to this desiscion, the Joint Liquidators have applied to the High Court relating to two matters:

  • To have the liquidation costs directly associated with the administration of customer-related matters to be paid from the trust funds
  • To establish whether or not it is appropriate for costs associated with the further investigation into the operation and management of the company prior to its liquidation to be paid from the trust funds

Home Payments Limited is next due before the High Court on 15 October 2012 for the purpose of seeking directions in relation to these matters.

The helpline for impacted customers remains open at 01 497 5795.

Read: Customers of Home Payments Ltd to be repaid some money>

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