‘NIGHTMARE OF CHRISTMAS PAST’

TIME FOR A FAIR DEAL FOR FAREPAK FAMILIES

Along with SNP colleagues Moray MP, Angus Robertson, has issued an appeal to the UK Government calling for compensation for Farepak families, who are still waiting for reparation four years after the collapse.

Comparing the UK Government’s response to bailing out the banks with Farepak, the SNP’s Work &  Pensions Spokesperson, Dr Eilidh Whiteford MP, has written to Business Secretary Vince Cable, asking why 20,000 Scottish customers, who lost their Christmas savings in 2006 are still out of pocket.

Backing Dr Whiteford local MP, Angus Robertson, says the situation is disgraceful, particularly when billions were used to bail out banks while ordinary families are still paying for Farepak’s failure.

Commenting the SNP’s Mr Robertson said:

“ The UK Government bent-over-backwards to bail out the banks but hasn’t found a single penny for the Farepak families, many of whom are in Moray. Many individuals were left significantly out of pocket and local agents, who were also unwitting customers, were left high and dry having sold hampers and vouchers in good faith to family and friends.

“ It is four years since Farepak collapsed, but that nightmare of Christmas past is still being felt by many low income families. Savers are likely to recover just 5p in the pound, while the final bill for the administrators and their legal advisers could reach 3 million pounds.

“ It is simply disgraceful that, years after the company collapsed, that customers are still waiting for their money back.

“ The UK Government needs to bring forward compensation for these families, particularly given that it was its failure to secure adequate consumer protection through regulation that allowed the Farepak Christmas crisis to happen.

“ UK Ministers should step in without further delay to secure compensation for those who lost out so badly.”