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Advice to prevent Farepak repeat | Advice to prevent Farepak repeat |
(about 1 hour later) | |
An information campaign has been launched to help people who put money into savings clubs and prevent a repeat of the Farepak disaster. | |
The hamper firm's collapse last year ruined Christmas for tens of thousands of people, who did not get the goods or gift vouchers they had saved for. | The hamper firm's collapse last year ruined Christmas for tens of thousands of people, who did not get the goods or gift vouchers they had saved for. |
Victims have been warned they will get no more than 5p in every pound saved. | Victims have been warned they will get no more than 5p in every pound saved. |
The Office of Fair Trading campaign will help consumers choose the safest options for Christmas saving. | The Office of Fair Trading campaign will help consumers choose the safest options for Christmas saving. |
More than 150,000 people lost an average of £400 when Swindon-based hamper operator Farepak failed. | More than 150,000 people lost an average of £400 when Swindon-based hamper operator Farepak failed. |
Following a government review earlier this year, money paid into similar Christmas savings schemes will from now on be kept in ring-fenced accounts so customers' money can be returned to them should the company go bust. | Following a government review earlier this year, money paid into similar Christmas savings schemes will from now on be kept in ring-fenced accounts so customers' money can be returned to them should the company go bust. |
The collapse of Farepak shows how important these decisions are for many consumers John Fingleton, OFT chief executive | The collapse of Farepak shows how important these decisions are for many consumers John Fingleton, OFT chief executive |
The £1m campaign, commissioned and funded by the Treasury, is designed to help consumers understand the full range of options when putting money away in the short term for events like Christmas. | The £1m campaign, commissioned and funded by the Treasury, is designed to help consumers understand the full range of options when putting money away in the short term for events like Christmas. |
These include unsecured schemes organised through a local milkman to the safest arrangements such as putting money into a bank or building society. | |
Important decisions | Important decisions |
"The collapse of Farepak when thousands of families lost money at a critical time, shows how important these decisions are for many consumers," said OFT chief executive John Fingleton at the launch, which was promoted by TV gardener Charlie Dimmock. | "The collapse of Farepak when thousands of families lost money at a critical time, shows how important these decisions are for many consumers," said OFT chief executive John Fingleton at the launch, which was promoted by TV gardener Charlie Dimmock. |
"The bulk of our work in this campaign will involve working with community groups on the ground to increase people's knowledge and skills about their choices." | "The bulk of our work in this campaign will involve working with community groups on the ground to increase people's knowledge and skills about their choices." |
Teresa Perchard, director of policy at Citizens Advice, welcomed the initiative. | Teresa Perchard, director of policy at Citizens Advice, welcomed the initiative. |
"We want to ensure that people who are saving up for Christmas know which forms of saving protect consumers' money and which do not," she said. | "We want to ensure that people who are saving up for Christmas know which forms of saving protect consumers' money and which do not," she said. |
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