Newsroom

Farepak – An Unfair Deal For Savers

Monday 22 October 2007

Last Christmas was effectively cancelled for 1,200 local people who lost nearly £500,000 when Farepak went bust. The Consumer Council today launched its report into the crisis and called for the introduction of new legislation to protect savers’ money.

Carol Edwards, Head of Education at the Consumer Council said: “The Farepak collapse left savers devastated and out of pocket just weeks before Christmas.  At the time, we promised to provide practical help and advice and to work with savers, agents and others to come up with safer ways to save.  Our report - The Farepak Collapse – NI Savers’ Stories - makes recommendations to the Government, consumer bodies, banks and building societies to help make sure this scandal is never repeated.

“Following the collapse, we asked people affected to share their stories with us so that their views were heard and taken into account in the Government’s inquiry into the matter.  We are pleased that Baroness May Blood will be launching our report today and that she has promised to speak up for Farepak savers in Westminster.

“We are also pleased that our local Credit Unions and the Office of Fair Trading (OFT) will be attending the event.  The OFT will launch a new campaign designed to help people choose a savings option that suits them best and the Credit Union will be launching the “Easy Shares Account” which allows people to save safely.

“We must learn the lessons of the Farepak collapse and do all we can to make sure it never happens again.  This will need a partnership approach to help people to be aware of the risks of savings clubs and to develop safe and secure savings schemes.  The Consumer Council led the way in calling for action on this issue and we are pleased that people have stepped up to the mark to do their part.”

The Consumer Council’s report The Farepak Collapse – NI Savers’ Stories – will be launched by Baroness May Blood at the Stormont Hotel at 11am on Friday 19 October 2007.

  1. Consumer Council media contacts: Susie Brown, telephone, 028 9067 4807 or e-mail, sbrown@consumercouncil.org.ukor Gráinne Duffy, telephone 028 9067 4813 or e-mail, gduffy@consumerocuncil.org.uk
  2. The Consumer Council is an independent consumer organisation, working to bring about change to benefit Northern Ireland’s consumers. The Council campaigns for high standards of service and protection and a fair deal for all. It also carries out research, gives advice and publishes reports and other publications. It deals with individual complaints about electricity, natural gas, coal, passenger transport and water.
  3. For more information, visit our website at www.consumercouncil.org.uk

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