MACDONALD COMMENTS ON FAREPAK SETTLEMENT
Wednesday, 11 July 2012 09:45
Falkirk East MSP, Angus MacDonald, has commented on the news that customers and agents of Farepak, the Christmas savings firm, will ultimately receive half of the money they lost when the company collapsed – after liquidators BDO said that final payments will be made to those who lost out at the end of August.
Numerous savers and agents in were affected by the Farepak collapse, losing hundreds and even thousands of pounds in some cases.
Since the firm collapsed in October 2006 owing £37m to more than
119,000 savers (20,000 customers in Scotland) over 200 people have died before the lengthy liquidation process proceeded.
Mr MacDonald said:
“After a six year wait it is utterly shameful that customers and agents will only receive half their money back while administrators pocket millions and taxpayers pick up the tab for the company directors’ legal costs.
“The impact on families in who had put their Christmas savings in the trust of Farepak was devastating, causing real distress for people who could not have the family celebration they had planned.
“When you have worked hard and put money away for children’s presents and then to lose it all because of other’s failures was incredibly hard. Getting some of the money back is better than nothing but to only receive half and see much more going into the bank accounts of accountancy and legal firms is really galling.”