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| Farepak victims miss festive cash | |
| (about 2 hours later) | |
| People owed money after the collapse of Farepak will not see any cash before Christmas, the BBC has learned. | People owed money after the collapse of Farepak will not see any cash before Christmas, the BBC has learned. |
| About 120,000 victims are expected to eventually receive about 5p for every £1 lost but it is still "early days", the firm's liquidators have said. | About 120,000 victims are expected to eventually receive about 5p for every £1 lost but it is still "early days", the firm's liquidators have said. |
| The "unprecedented number" of claimants has been partly blamed for the delay in salvaging any cash. | The "unprecedented number" of claimants has been partly blamed for the delay in salvaging any cash. |
| About £40m was lost when the savings club went into administration in October 2006. | About £40m was lost when the savings club went into administration in October 2006. |
| Customers of Farepak, owned by European Home Retail (EHR), paid money monthly to the company as a practical way to put cash aside for Christmas - receiving hampers and vouchers to use in shops. | Customers of Farepak, owned by European Home Retail (EHR), paid money monthly to the company as a practical way to put cash aside for Christmas - receiving hampers and vouchers to use in shops. |
| However, the company collapsed in October last year. | However, the company collapsed in October last year. |
| 'Social injustice' | 'Social injustice' |
| Separately, a report by Unison has suggested that low-paid women who suffered from the collapse were forced into a "cycle of debt" | Separately, a report by Unison has suggested that low-paid women who suffered from the collapse were forced into a "cycle of debt" |
| Feelings of "anger, anxiety and depression" were found among savers who lost money, it said. | Feelings of "anger, anxiety and depression" were found among savers who lost money, it said. |
| University of Birmingham researchers found that many had been forced to borrow from relatives or had taken out loans after losing money. | University of Birmingham researchers found that many had been forced to borrow from relatives or had taken out loans after losing money. |
| Director of the Centre for Crime and Justice Studies, Richard Garside, said that many victims felt they had been neglected. | Director of the Centre for Crime and Justice Studies, Richard Garside, said that many victims felt they had been neglected. |
| "Many are asking why, if the government was prepared to underwrite Northern Rock to the tune of billions of pounds, no comprehensive help has been forthcoming," he said. | "Many are asking why, if the government was prepared to underwrite Northern Rock to the tune of billions of pounds, no comprehensive help has been forthcoming," he said. |
| "As it is, a significant source of social injustice remains hidden and unaddressed by the government and the financial authorities. Without concerted action other Farepaks are inevitable." | "As it is, a significant source of social injustice remains hidden and unaddressed by the government and the financial authorities. Without concerted action other Farepaks are inevitable." |
| A Department of Business and Enterprise spokesman said that a Family Fund it had set up had distributed about £8m to victims and that its investigations would ensure anyone who acted improperly was held to account. | |
| He added that a number of steps - including putting in place protection for customers' prepayments - had already been taken. | |
| "The collapse of Farepak last Christmas was appalling and we have acted to ensure that nothing similar could happen again," the spokesman said. |