Saturday, 25 May 2013

More money for Farepak victims but savers still out of pocket

West Cumbrian people who lost thousands of pounds following the collapse of a Christmas hamper company have welcomed news of further compensation, but remain angry that the people responsible have not been brought to justice.

When Farepak collapsed in 2006, it left no money to pay back its customers and agents.

Thousands of people who had saved all year for Christmas were left devastated.

The joint liquidators of Farepak announced this week that customers and agents will receive dividend payments of about 32p for every pound they put in at the end of next month.

This, combined with earlier dividend payments, means that customers and agents will get back around half of their money.

Mary Davidson, of Needham Drive, Moorclose, Workington, was in the scheme with six others who were family and friends and she acted as agent for the group. They lost over £1,000.

She said: “I don’t think it’s enough really, we lost a lot of money, but it is better than nothing.

“I think the people who are responsible should pay back every last penny and be made to sell everything they have got to pay it back.”

Workington MP Sir Tony Cunningham has worked for years to try and get the victims all of their money back.

He said: “It should never have happened.

“The people responsible should have been jailed for what they did.

“It was absolutely despicable they continued to take money even though they knew they were going into administration and they knew they wouldn’t be able to pay.

“I am pleased that they got something, but justice will not be completely done until the people responsible are brought to justice.”

Janet Love, 47, of Westnewton, near Aspatria, lost around £400 to Farepak.

She said: “I am very pleased that after six years we are getting something more, as it has been a long time coming.

“The full amount would be nice but I am happy with 50p in the pound, I never thought we would get that much.

“It has been a very stressful situation for thousands of people.”

Christine Pattinson, 52, of Hinnings Road, Distington, lost nearly £1,000 in the scheme.

She said: “The most annoying thing was that they knew they were going bust and cashed my cheque anyway.

“The company haven’t helped at all but Sir Tony was absolutely fantastic and he pushed and pushed.

“I would definitely like to see the people responsible prosecuted, I don't see why they should get away with it.”

The dividend payment to Farepak’s 114,000 creditors at the end of next month will mark the end of the liquidation of Farepak.

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