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| Farepak bosses may face MPs quiz | Farepak bosses may face MPs quiz |
| (19 minutes later) | |
| The bankers and head of the company that owns of collapsed Christmas hamper firm Farepak may be quizzed by MPs. | |
| Labour MP Jim Devine has asked the Commons Scottish Affairs Committee to formally question the parties. | Labour MP Jim Devine has asked the Commons Scottish Affairs Committee to formally question the parties. |
| Earlier, the group's chairman, Sir Clive Thompson, blamed Halifax Bank of Scotland for the firm's collapse. HBOS has rejected the claims. | Earlier, the group's chairman, Sir Clive Thompson, blamed Halifax Bank of Scotland for the firm's collapse. HBOS has rejected the claims. |
| Swindon-based Farepak went into administration in October without offering compensation. | Swindon-based Farepak went into administration in October without offering compensation. |
| An estimated 150,000 customers - mainly on low incomes - have lost an average of £400 each through Farepak's collapse, although some have lost closer to £2,000. | An estimated 150,000 customers - mainly on low incomes - have lost an average of £400 each through Farepak's collapse, although some have lost closer to £2,000. |
| More than 100 Farepak savers have been to a meeting in West Lothian, with Mr Devine, the MP for Livingstone. | More than 100 Farepak savers have been to a meeting in West Lothian, with Mr Devine, the MP for Livingstone. |
| Mr Devine has said he wants Sir Clive and HBOS to "stand in front of Scottish MPs to answer questions we all want to hear". | Mr Devine has said he wants Sir Clive and HBOS to "stand in front of Scottish MPs to answer questions we all want to hear". |
| 'Hung out to dry' | 'Hung out to dry' |
| Sir Clive said HBOS refused to support Farepak because of a £1.5m funding shortfall, says the Sunday Telegraph. | Sir Clive said HBOS refused to support Farepak because of a £1.5m funding shortfall, says the Sunday Telegraph. |
| They're not considered financial products so the Financial Services Authority doesn't regulate them Ed Vaizey, Conservative MP | They're not considered financial products so the Financial Services Authority doesn't regulate them Ed Vaizey, Conservative MP |
| He was quoted by the Telegraph as saying Farepak's management was "hung out to dry" by HBOS. | He was quoted by the Telegraph as saying Farepak's management was "hung out to dry" by HBOS. |
| He also said the bank rejected five proposed rescue packages between May and October. | He also said the bank rejected five proposed rescue packages between May and October. |
| An HBOS spokesman said Farepak's requests for the bank to "ring fence" savers' money were not serious. | An HBOS spokesman said Farepak's requests for the bank to "ring fence" savers' money were not serious. |
| The fact is that there was no money to ring fence because the money was used as working capital by Farepak's owner European Home Retail (EHR), said the spokesman. | The fact is that there was no money to ring fence because the money was used as working capital by Farepak's owner European Home Retail (EHR), said the spokesman. |
| HBOS provided an overdraft facility to Farepak's owner, EHR. It was an HBOS decision not to extend EHR's overdraft that eventually led to administrators being called in. | HBOS provided an overdraft facility to Farepak's owner, EHR. It was an HBOS decision not to extend EHR's overdraft that eventually led to administrators being called in. |
| Response fund | Response fund |
| The Department of Trade and Industry has launched an investigation into what happened at Farepak. | The Department of Trade and Industry has launched an investigation into what happened at Farepak. |
| A fund has also been set up to help the thousands of families affected, firms that have promised to donate money include HBOS, Christmas hamper supplier Park Group and Marks & Spencer. | A fund has also been set up to help the thousands of families affected, firms that have promised to donate money include HBOS, Christmas hamper supplier Park Group and Marks & Spencer. |
| Paul Munn, a non-executive director of EHR, told the BBC the board had made "strenuous efforts" to tackle the problem, adding: "Clearly, we're very saddened by the situation. | Paul Munn, a non-executive director of EHR, told the BBC the board had made "strenuous efforts" to tackle the problem, adding: "Clearly, we're very saddened by the situation. |
| "No-one likes to see any company fail or let its customers down. That's absolutely to be regretted." | "No-one likes to see any company fail or let its customers down. That's absolutely to be regretted." |
| Let down | Let down |
| Farepak agent and customer Debbie Black said she thought the company bore the ultimate responsibility for the situation. | Farepak agent and customer Debbie Black said she thought the company bore the ultimate responsibility for the situation. |
| "At the end of the day we are putting our trust in Farepak and the parent company EHR and our money should have been safeguarded by them - they shouldn't rely on the bank to make safeguards. | "At the end of the day we are putting our trust in Farepak and the parent company EHR and our money should have been safeguarded by them - they shouldn't rely on the bank to make safeguards. |
| "It should be down to the directors of the company to do it anyway." | "It should be down to the directors of the company to do it anyway." |
| Meanwhile, Conservative MP Ed Vaizey said he was unhappy about the rules governing clubs such as Farepak. | Meanwhile, Conservative MP Ed Vaizey said he was unhappy about the rules governing clubs such as Farepak. |
| "They're not considered financial products so the Financial Services Authority doesn't regulate them," he said. | "They're not considered financial products so the Financial Services Authority doesn't regulate them," he said. |
| As a result, if such a company fails, it does not have to compensate its customers, he added. | As a result, if such a company fails, it does not have to compensate its customers, he added. |