Two years after the collapse of the Christmas saving company Farepak, local MP Katy Clark once again voiced her support for full compensation to be given to the victims of the Farepak fiasco.
Around 150,000 people across the UK lost their Christmas savings when Farepak went into administration in October 2006. At present customers of this saving scheme are only entitled to receive up to 5 pence in each pound in compensation –and they haven’t even received that yet due to court action being taken by the administrators .
Speaking on this issue Katy said, “It is appalling that families who put their trust and money into this saving scheme have not yet received any compensation.”
In November 2007 Katy Clark MP tabled a motion in parliament calling for those responsible to be held to account, compensation to be given to the victims of the collapse, and stronger government legislation in order to prevent this happening again. The motion has received cross party support with more than 250 MPs signing up to it.
Katy Clark said “We still do not have regulation to stop this happening again. We need Regulation to protect not just those using Christmas saving clubs but all those that use pre-payment saving schemes for example to save up to buy furniture.”
Katy said, “We must maintain the campaign for full compensation for Farepak victims. We must continue to exert pressure to ensure that all victims receive the compensation that they deserve.”
It is believed that there may well be prosecutions of those who ran the company.