Farepak customers to receive half of money owed

July 10, 2012
By

Customers of collapsed Christmas savings firm Farepak will eventually receive half of the money they lost when the company failed.

The Swindon-based company collapsed in 2006, leaving 114,000 people with total losses of £37m.
 
Liquidators BDO have confirmed the final payments of 50% of the money owed will be made by the end of August.
 
The government's Insolvency Service had argued that the high-profile collapse of Farepak had been the fault of nine former directors of the company, but this action was dropped after a recent High Court case.
 
BDO has confirmed that a payment of about 32p in the pound will be made, which includes a share of the £8m from Lloyds Banking Group.
 
When added to the 17.5p in the pound given by the Farepak Response Fund charity, set up by the government in 2006, customers will have received a total of approximately 50p in the pound, BDO said.
 
Former customers and agents who have changed their address since they made their original claim should inform the Farepak claims management team of the alteration.
 
Suzy Hall, who co-ordinated the Unfairpak campaign, said: "Never in my wildest imagination did I think we would get back 50p in the pound. Unfairpak believe we have won."
 
She also praised the liquidators, who have waived some of their fees and been "very mindful" of costs.
 
"The demographic of Farepak savers is low-income women so this is absolutely wonderful," she said.

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