Farepak administrators set to make much more than savers

28 November 2011

farepak Remember Farepak? The Christmas savings club that went belly-up just ahead of the festive season in 2006? The name probably still sends a chill down your spine if you were one of the 120,000 savers who lost an average of £400 each when it collapsed.

You probably still haven’t received anything back yet either – the legal shenanigans have been rumbling on for five years now and the latest offer to savers was for 15p in the pound - £5.7m of the £38m that is owed to them.

Rather than being a Farepak saver, you should probably have become a lawyer, administrator, insurer or media relation executive involved in the administration and liquidation of the company. That lot have earned themselves fees totalling £8.2m throughout the whole fiasco. Good work lads and lasses!

Farepak was a Christmas savings club in whicih savers made monthly deposits in return for vouchers which they received  before Christmas. Its owner, European Home Retail, used savers’ money to fund the day-to-day running of the business, leading to the collapse in 2006.

TOPICS:   Motoring   Debt

15 comments

  • Harry S.
    Five years? A lot if the ripped off Grannies will be dead now.
  • Tom
    Lesson learned: Don't give your money away to somebody who might not be able to pay it back.
  • George O.
    @ Tom Shit. You mean like Greece, Ireland, Portugal, Italy, Romania, Hungary, Sudan, Uganda, Zimbabwe, and a bunch of other places?
  • JonB
    A better lesson to learn is that nothing is too big to fail. Keep your money safe at home.
  • Alexis
    Surely putting some away in an ISA would give you a better return? And who wants shop vouchers? It's an online world now.
  • Sicknote
    @alexis Be real about this, most of the people who lost money in this shocking case don't have access to mainstream banking let alone be able to discuss the performance of their ISA with their financial advisor. What hasn't been reported so loudly is that the largest wedge of the money pie went to the Inland Revenue; who as we all know get their fill before anyone else.
  • Tom
    It's sad as the kind of people hoe use these schemes are in the lowest income bracket.
  • andy y.
    eat the rich
  • Alexis
    @sicknote. Surely access shouldn't be an issue? If you want to squirrel money away, credit status shouldn't be much of a factor?
  • The B.
    @Alexis, I think it is, Banks credit check you before you can open up any sort of account (even a deposit account).
  • Dick
    Anyone that saved with them was ignorant, and the ignorant get screwed over. It happened then, it is happening now with many other schemes and financial products.
  • rob
    Everyone has access to an ISA, they're well advertised and you don't need a financial advisor to take one out.
  • Joe B.
    "Posted by Sicknote • November 28, 2011 at 12:53 pm largest wedge of the money pie went to the Inland Revenue; who as we all know get their fill before anyone else." Those of us who do know what is going on, know that HMRC lost its status as a preferential creditor in 2003. You really ought to keep up.
  • sidney s.
    phuck em' all! Yeah! More puds purleeeze!!!
  • Sicknote
    "Posted by Joe Bloggs • November 28, 2011 at 8:29 pm" Those of us who do know what is going on, know that HMRC lost its status as a preferential creditor in 2003. You really ought to keep up Thanks Joe. Point accepted but nonetheless, HMRC received payments from the disbursement of the account to the tune of £713,685.00 £74,208.00 £9,050.00

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