Xmas savers' funds ringfenced after Farepak collapse
Christmas savings companies will have to ringfence customer savings in the future
Christmas savings companies will have to ringfence customers’ money to
protect the funds if the enterprise collapses.
A review into the collapse of
Farepak
has outlined plans to protect customers’ savings, reported Sky
News.
Farepak’s collapse has seen the vast majority of savings by 150,000 families
lost. Administrators from
BDO
Stoy Hayward said customers are likely to receive just a few pence
in the pound.
A trade association will also be set up to act as a watchdog for the
industry.
Further reading:
Farepak customers to get 5p
in the pound
BDO and DTI to investigate Farepak
collapse
Farepak parent company owes £80,000 to
directors