MPs demand action to prevent repeat of Farepak scandal

MPs demand action to prevent repeat of Farepak scandal

Commons Treasury Committee calls for evidence of substantial progress by the end of January

The Commons Treasury Committee has demanded urgent consideration of ways to
prevent a repeat of the Farepak scandal.

MPs called for ‘evidence of substantial progress by the end of January’ in a
report that demands for more to be done to end financial exclusion.

They urged the FSA, OFT and government ‘as a matter of urgency’ to consider
how to implement appropriate safeguards, including an examination of whether the
FSA’s responsibilities should be expanded to include savings clubs of the
Farepak ilk.

The report said the failure ‘has highlighted a serious lack of consumer
protection that could have much wider implications for savings products’.

Concerns include fears that the scandal has created more public
disillusionment over savings in the wake of difficulties with endowment
mortgages and failing pension schemes.

The MPs demanded the FSA do more to end financial exclusion, and blamed
restrictions designed to curb money laundering for excluding those with less
adequate identity documentation from access to financial services.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

5m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

5m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

6m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

6m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

6m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

6m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

7m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

7m Emma Smith, Managing Editor