West Cumbrian Farepak victims get compensation
Last updated at 12:18, Friday, 26 October 2012
Workington MP Sir Tony Cunningham has said he is “delighted” that West Cumbrian people have received compensation cheques for some of the money they lost following the collapse of a Christmas hamper company.
When Farepak collapsed in 2006, it left no money to pay back its customers and agents.
People in West Cumbria lost thousands of pounds through the collapse.
Thousands of people who had saved all year for Christmas were left devastated.
The joint liquidators of Farepak agreed to give customers and agents dividend payments of about 35p for every pound they put in. They started sending cheques out at the end of August.
Combined with earlier dividend payments, it means that customers and agents will get back around half of their money.
Sir Tony said: “I am pleased that people have got something back and it is more than we originally thought.
“I do feel that they should have got everything back and that the people behind this should’ve felt the full arm of the law.
“What they did was immoral and disgraceful as they were continuing to take money from people knowing that they couldn’t provide products and gifts.
“I have had calls from people who have received their cheque’s already to say thank you and I believe others will receive theirs soon as part of the process.”
He added: “It has been a long battle and my aim was always to keep Farepak in the spotlight and keep the pressure on.”
Victim Mary Davidson, of Needham Drive, Moorclose, Workington, was in the scheme with six others who were family and friends and she acted as agent for the group. They lost over £1,000.
She has received a cheque for around £98 and confirmed others in the group had received their compensation cheques..
Mrs Davidson said: “At least we got something back but we still feel the people who did this should be made to pay it all back.”
Sandra Wallace, 45, of Bow Flatts, Great Clifton, and her aunt Eileen Wallace lost around £1,500 from collecting Christmas vouchers for the scheme.
They are both waiting for their compensation cheque of around £500.
“We’ve not had our cheque yet but we do know a couple of other people on the estate who have so we’re just waiting to hear,” Sandra said.
“What we’ve ended up with is better than nothing but it’s disgusting that the people who did this to us have come out on top.”
First published at 11:56, Friday, 26 October 2012
Published by http://www.timesandstar.co.uk
Have your say
I was a Farepak victim, and to date I have still not received my cheque. My mum was the agent, and has phoned Farepak several times, to be told a different story everytime. It is a joke. I had Â£1500 worth of vouchers, and lost the lot,so you would think they would feel a little guilty, but I don't reckon they do. Very unhappy customer.
I received my payout last week.Now where near what i would have got in vouchers, but better than nothing.
But we should not have had to wait this long.The people behind Farepak, should be jailed, they knew long before customers final payments, that the company was in trouble.The reason people use companys like these, is to spread the cost over the year, and have the vouchers in time for christmas, and they took advantage of people.