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| Version 1 | Version 2 |
|---|---|
| Farepak customers' outlook bleak | Farepak customers' outlook bleak |
| (10 minutes later) | |
| The administrator of collapsed Christmas savings club Farepak, has said it has received claims for £38m from 113,000 customers and agents. | |
| But victims of the failed firm will receive no more than 5p in every pound they have lost, the administrator says. | |
| "It is clear that Farepak did not adequately protect the money paid in," the report to creditors said. | |
| More than 150,000 people lost an average of £400 each when the company went into administration in October. | |
| No protection | No protection |
| Farepak customers paid monthly sums to the firm or its agents towards food hampers for the festive season. | Farepak customers paid monthly sums to the firm or its agents towards food hampers for the festive season. |
| However the company went into administration leaving them with limited hopes of compensation. | However the company went into administration leaving them with limited hopes of compensation. |
| The report, from administrators BDO Stoy Hayward, makes it clear that savers' money was not ring-fenced. | The report, from administrators BDO Stoy Hayward, makes it clear that savers' money was not ring-fenced. |
| A voluntary fund set up in the run-up to Christmas raised about £7m to mitigate the effect of the collapse on Farepak savers. |