200 Farepak victims die without receiving compensation
Jan 22 2012 By Christine Lavelle
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MORE than 200 victims of the Farepak scandal have died without receiving a penny in compensation.
Around 120,000 families lost an average of £400 when the Christmas savings firm went bust five years ago.
But most of them are still waiting amid arguments over who should receive money.
Mike Weir, the SNP’s Westminster spokesman for consumer affairs, urged the Government to intervene and speed up payments.
The Angus MP said: “It is sad and unacceptable that, five years after Farepak collapsed, more than 200 customers have died waiting to receive any of their money back.
“Just like the banks, current UK insolvency regulation has failed. Part of the problem seems to be that the industry is largely self-regulated.
“UK ministers should step in without further delay to bring this sorry tale to an end and ensure that the savers receive a reasonable return.”
Liquidators BDO Stoy Hayward confirmed to Weir that 207 people affected by the collapse had died without getting their money back.
Around 122,000 customers made claims worth £38million. In 2009, payments worth a total of £240,000 were sent to 5900 customers whose money was put into trust just before the firm went under.
Victims were told to expect no more than 5p for every pound spent.
The liquidator’s letter said: “I can confirm that any dividends will be paid to the next of kin or, where applicable, the estate of the agent or customer.”