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Nr / Farepak - A Comparison

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Farepak victims demand cash aid

Why did the government help Northern Rock customers but not us, demand savers

Jamie Doward, home affairs editor

Sunday October 14, 2007

The Observer

Thousands of people who lost their savings when Farepak, the Christmas hamper company, collapsed a year ago believe they have been denied justice, according to research published today.

The victims want to know why the government stepped in to help Northern Rock last month but was not prepared to sort out the Farepak fiasco.................

· Most of the savers were women who were being 'prudent' and used the scheme to manage household finances, and have paid a high cost as a result.

· Many had saved with Farepak for decades and were given no warning their savings were at risk.

Some have been forced into a cycle of debt, despite being careful savers.

'Many Farepak victims feel that there has been no justice, just a lot of so-called money experts giving us advice on how we should save in future,' said the chairwoman of the Farepak Victims Campaign, Louise McDaid.

'It is a pity that they were unable to let us know that Farepak was not regulated in the first place. Government had and has a responsibility to protect Farepak victims. If the government could guarantee Northern Rock savers that their money was safe, then why could they not do the same for the Farepak victims?'

So, you are a wealthy investor with more than £35,000 stashed in a bank which even a modest amount of investigation would reveal has seriously dodgy finance. The rules are pretty clear that you will lose anything over the £35k if there are problems, or perhaps you are so daft that even with more than £35k to invest you don't bother with research or a financial advisor.

One day there are problems, the government steps in and guarantees every penny of your millions out of the taxpayers pocket.

Or, you are a poor person, so poor that saving for Christmas is a major logistical nightmare. You are so careful and frugal that you start saving in January. A visit to an IFA would cost most of a week's wages. One day there are problems.

The government........does nothing at all. Tough luck, your problem.

Thing is, if this was a Tory government, it would make sense. It wouldn't be nice, but it would be understandable.

Moral of the story, make sure you invest in financial instituions that are big employers in Labour constituencies.

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Got it in one.


Oh god I agree with him.

Labour have created a HUGE problem for themselves. Every union negotiator in the land is going to be saying the exact same thing over the next two years. Labour has no basis for telling their workers that "they want to keep inflation down" or "it's fiscal prudence" or "the money isn't there" any longer.

They couldn't have picked a better moment to drop this bollock either.

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