You are here: Home - Uncategorized -

Farepak victims to protest

Written by:

People who have lost their Christmas savings in the collapse of savings club Farepak are to hold a protest outside the Edinburgh offices of Halifax Bank of Scotland (HBOS), a big provider of UK current accounts. The protest will coincide with a reception to be held by the bank.

HBOS has been severely criticised for offering business banking services to Farepak’s parent company, European Home Retail, while allegedly being aware of the firm’s serious financial problems. When Farepak collapsed in October, some 150,000 people lost up to £50m of savings earmarked for Christmas shopping. This equates to an average shortfall of around £400 each.

The Government has expressed concern that such an event could happen at all, and that the savings club sector is largely unregulated. There are no criteria available for people to compare saving accounts and it would like to see this changed, with legislation covering the area.

The Farepak Response Fund (FRF) has been launched to try to compensate savers for at least some of their losses. So that the business banking UK sector does not look too tarnished by the affair, HBOS has given £2m to the fund, which now totals £6.4m, still a significant way below the total amount lost.

HBOS is reportedly stepping up its security for the reception in readiness for the protests.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Brown gathering winter fuel windfalls

Chancellor Gordon Brown has resumed his attack on the nation’s motorists and haulage companies by raising fuel duty for the...