Co-op launch protected Christmas savings scheme

9 November 2012

Bitterwallet - robot santa in FuturamaRemember when hamper vendors, Farepak, went under and ruined everyone's Christmas? Well, the Co-operative group have announced that they'll be launching a Christmas savings scheme and, for the first time, the customers' money will be protected, to avoid any Farepak nonsense.

The scheme will be launched in time for people who want to put money aside for Christmas 2013.

Christmas savings schemes are not protected by the Financial Services Compensation Scheme (FSCS), which means that, should things go belly-up, you're screwed. In Farepak's case, £37m of customers' money was wiped.

Martyn Wates, deputy group chief executive of the Co-operative Group, said: "The memory and impact of Farepak's demise is still felt by many households within the UK. Members of the Farepak Victims Committee have, to their enormous credit, kept the issue of consumer protection alive and I am delighted that, as the UK's biggest consumer-owned business, we have been able to respond in this way."

Deb Harvey of the Farepak victims committee have been working with the Co-operative on this new scheme, saying: "We are overjoyed at the announcement. We have been campaigning for six years because, as former customers and agents, we know only too well of the heartache caused by the Farepak collapse."

"This is a massive step in the right direction and demonstrates how The Co-operative is putting the customer at the heart of its business."

TOPICS:   High Street News   Investments   Christmas   Banking


  • Dick
    Why not just get a bank account instead.
  • Richard
    Exactly, just open an online savings account. Takes less than 5 mins and it's a whole lot less restrictive and easier to manage.
  • pete
    Co-op stores have prices which mean it would be madness for those on low incomes to shop there. And people on low incomes are the ones who join Xmas savings clubs.

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