You are here: Home - Uncategorized -

Hamper scheme cash ring-fenced to stop losses

0
Written by:
29/03/2007

Cash paid into Christmas savings schemes, such as the crashed Farepak operation, will now be protected following a Government review.

The hamper industry has agreed that from now on customers’ savings will be kept in ring-fenced accounts that will not be affected if the company running them gets into trouble.

The Treasury review was undertaken after 150,000 people lost an average of £400 each when Farepak went under in 2006.

“Ring-fencing customers’ contributions will ensure that their money can only be returned to them and the agents if the company goes bust,” said consumer minister Ian McCartney.

“Families will then be able to put something aside for Christmas in the knowledge that their money is safe and there will never be another Farepak,” he added.

Sarah Miller of Citizens Advice said: “It is essential that people’s money is protected properly in the future to prevent the misery that thousands of Farepak customers, unfairly and unexpectedly, suffered last year.”

The Treasury review did not examine the causes of Farepak’s sudden collapse or make any suggestions as to how these schemes can be regulated in the future.

However, Farepak’s administrators, BDO Stoy Hayward, said that the collapse of the business was caused by the fact that £33m ‘lent’ to its parent company, European Home Retail, was not paid back.

 

 

 

Related Posts

Tagged:

Tag Box

Debt

Pension

Spending

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...

YourMoney.com 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:
European property boom fuelled by canny Brits

Foreign property markets are booming as more British purchasers look abroad, according to the Foreign Focus Index (FFI) launched this week by...

Close