Victims of Farepak collapse take compensation case to UK Government

Victims of the collapsed Christmas savings company Farepak have taken their case for compensation to the UK Government.

They met with Business Secretary Vince Cable in an hour-long discussion which one MP described as "informative and very useful".

One of those who was affected when the company went bust was Louise McDaid from Ayrshire.

She lost £400 when the Swindon-based company collapsed in 2006. Ms McDaid and 114,000 others have yet to receive any compensation.

Ms McDaid said the creditors do not just want money but also recognition that companies like Farepak should be better regulated.

Earlier this month, liquidators BDO said they will make dividend payments to Farepak's creditors, including customers and agents, at the end of August.

They said that a payment of about 32p in the pound will be made, including the £8m which Lloyds Banking Group announced it was making available to former Farepak customers last week.

When added to the 17.5p in the pound given by the Farepak Response Fund charity, set up by the UK Government in 2006, customers will have received a total of approximately 50p in the pound, BDO said.

The liquidators said they will aim to make dividend payments to Farepak's creditors at the end of August, which will for them mark the end of the liquidation of Farepak.

The High Court in London previously heard that, following the firm's downfall six years ago, claims by customers and agents against Farepak amounted to about £37m.

People who read this story also read