Brown vow on Farepak Christmas hamper victims

Date published: 18/10/2007

Prime Minister Gordon Brown yesterday pledged to help ensure justice for victims of the Farepak collapse — a move expected to benefit dozens of local victims.

The promise follows criticism at the absence of compensation payouts on the first anniversary of the Christmas hamper firm’s collapse.

Farepak allowed people to save for festive hampers and vouchers. But it left an estimated 150,000 savers about £40 million out of pocket when it went into administration.

The creditors’ committee has also warned that no cash payments were likely to be made before this Christmas.

Raising the issue at Prime Minister’s question time, Labour’s Anne Snelgrove (South Swindon) said: "I have just met with the administrator who tells me she is unlikely to pay back any money before Christmas.

"In addition, none of the reports will be made public under law."

She appealed for a meeting with Mr Brown to discuss how to speed up the process.

He replied: "What happened to Farepak was completely unacceptable.

"We have worked very closely with all those people who have lost money as a result of Farepak and will continue to do so."