Hamper customers 'not protected'

HITA say their cash bond was never intended for refunds Watch: Rachel explains more

Hundreds of viewers have been further let down after finding out that collapsed Christmas hamper company Farepak is not covered by any refund guarantee.

The company was a member of the Hamper Industry Trade Association (HITA), which requires all member firms to lodge a cash bond.

"Our bond, which is in the value of £100,000... was never ever envisaged for use to refund customers and agents," Neil Henderson-Begg from HITA told BBC Working Lunch.

Customers and agents have lost thousands of pounds following the company's collapse and are furious that it has been allowed to continue trading despite warnings it was in trouble.

European Home Retail, which owns Farepak and a number of other companies, released a statement on their website in June saying that it would need to borrow a substantial amount of money in the autumn.

By August their shares were suspended because the additional financing could not be arranged.

I'm devastated, I have now got to tell my six children and grandaughter that there will be no Christmas presents A. Terry Christmas gloom for 100,000

The company runs a savings scheme where customers can put money aside for vouchers and Christmas hampers - but administrators now say that no orders will be fulfilled.

Dozens of viewers have emailed the programme claiming to be owed money by Farepak.

Within 24 hours of broadcasting the story Working Lunch had received emails with claims totalling over £135,000 - more than the entire value of the cash bond.

Ms Berry worked as an agent and had paid £3,730 on behalf of customers. She is planning to pay them back out of her own pocket.

"I too feel morally obligated to give my customers their money back... I have therefore taken a loan to do this, but am furious with the whole situation. As a single mother, this is a burden that could bury me."

Another disappointed customer, Adrian Hendry, has lost thousands of pounds saved up throughout the year.

"I have collected and banked £6,500 religiously over the last 10 months. These companies should not be able to have access to customers' money until all orders have been met."

Farepak: "Give your family the best ever Christmas"

Another Farepak customer, A. Terry, speaks of the disappointment and struggle the whole family is likely to endure.

"I'm devastated, I have now got to tell my six children and grandaughter that there will be no Christmas presents. I have saved all year struggling to find the money."

All people affected should keep an eye on the HITA and Farepak websites to check for any new information.

Concerned customers and agents can register a claim in the following ways.

Telephone: [phone]

Fax: [phone]

Email: [e-mail]

Address: Farepak Food & Gifts Limited - In Administration
Kings Wharf
20-30 Kings Road
Reading
RG1 3EX

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