Farepak: Your stories and views

We're here to warn away the financial sharks

Thank you for sending us your comments - here at Working Lunch we love to hear your views and ideas.

Here are some of your comments and personal stories on Farepak.

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FAREPAK HAMPERS

I volunteer for a small community credit union.

We have tried and tried to contact local Farepack agents to see if we can help anyone get through Christmas.

It seems individual customers and agents only know their own small network.

Please can anyone help - as we would like to be able to!

Jenn
Stroud Valleys Credit Union Ltd.

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The Farepak collapse has been given much time on your always-worthwhile show, and rightly so!

But I've yet to hear any word of sympathy or concern about those Farepak employees who have lost their jobs on the run-up to Christmas and maybe even their pensions!

Dave Ainsworth.

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Dear Mike Dalton,

When you invested in Marconi, you hoped to make a profit through the gamble of owning shares; people who put money into the Farepak scheme hoped to save some of their hard-earned money.

They did not ask for more money than they earned.

So please don't criticise their 'investment'.

Morag Gibson.

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We have unfortunately been forced to leave our property, we are currently living in an uncarpeted property in Barwell.

Now we face a christmas without a christmas dinner.I had ordered £400 worth of farepak vouchers.

£100 each to replace the childrens bikes which were stolen from the previous property, £100 for gifts for family and friends, £50 for christmas food and the remaining £50 was to be spent on gifts for my daughters birthday on 7th December.

Unfortunately i am unable to get credit so im in a right dilema as to what and how i am supposed to do to manage christmas.

Carla Knight.

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I saw your report about the Farepak fund on today's show, I think it's a great idea. I'm not a retailer - hell, I'm just a bloke in Coventry, but I'd like to donate to it.

Of all the appeals doing the rounds at the moment, surely this is more deserving of our money, these households used the scheme to spread the cost of Christmas responsibly, rather than getting needlessly into debt.

Why doesn't the National Lottery underwrite the cost of their Christmas, or the Treasury - imagine the long term impact of Santa setting up shop in Westminster for a year - that's 150,000 sets of young children from some of the poorest families, who will grow up knowing that we care about 'em.

We're always banging on about our virtuous society, if this was 150,000 Pakistanis or Boilivians then they'd be looked after in a heart beat.

Anyway, can you send me contact details for the fund, I can't get to Canada this year, so the money's just sitting there - might as well use it to bring Christmas to some kids.

Graeme.

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I am really upset at some of the negative comments people have made on your message board. They are hurtful and obviously come from people who have no true understanding of human nature and see the world through their own blinkered eyes.

I have lost a lot of money with Farepak, I have used hamper savings schemes for 11 years and do so not because I am too foolish to open a bank account and save or because I have no business sense.

What I have done is used a scheme that usually provides a good service. one where I can spread the cost of Christmas over a number of weeks. I don't have to go any further than my neighbour's house to deposit the money, then in November I get a big wad of vouchers and go on a spending spree without feeling the guilt of getting into debt.

So please stop with the comments that make ordinary people appear foolish.

Carol Young.

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I have unfortunately been caught up in the crisis how dare anybody call us stupid to trust our money with a third party. I have lost £800, my sister has lost £1,000 and my working mother of 74 lost £500.

How do we try to recoup our money in time for christmas? I have used this savings scheme for a number of years steadily building up the amount as we all know children's gifts cost more all the time and yes I am guilty of spoiling my children and family at christmas - who isn't - but at least I haven't stolen from anybody like I feel these people have stolen from so many of us.

We shouldn't let this go to sleep and become yesterday's news because next year it could be you who it affects. Any help from whichever source would be greatly appreciated. It makes my blood boil to read that 'I shouldn't expect to be bailed out'. Well, I didn't expect to be robbed at christmas.

Mrs P Beck.

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I go to your website every day and catch up on the fiasco known as Farepak.

A viewer stated that 'what we have here are a group of people who cannot trust themselves to put money into an account and gain interest and feel it necessary to send money to a third party and not get any interest and receive their initial amount back'.

I am married with two young children, my husband and myself work hard all year, to ensure that our family is provided for.

We have a savings account which we save in and we are both capable of saving money and not touching it.

This was not the reason why I saved with Farepak. I saved an amount every month to get vouchers at Christmas, which felt to me like a gift in themselves.

I could understand negative comments if we were trying to get rich quick i.e. pyramid schemes etc, but this to us had no risk at all and in our innocence we treated it as a savings account, i.e. put money in and get the same amount back, what could go wrong in that!

Wendy Wood.

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I thought this year would be great for my two daughters, I paid £2,094 for food and presents to farepak and £1,000 for vouchers for the greatest Xmas.

I have invited all my family around for dinner and my girls were going to get the presents they've wanted for a while.

I can't afford to just go out and get whatever my girls want, I need to save up throughout the year.

Now we all have nothing and no way of borrowing.

This is going to be the worst Xmas ever for myself and my two daughters.

I only wish this was a nightmare and I would open my eyes and it would all be gone.

Martina Coulstock.

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I too have lost money over this Farepak fiasco... over £2,000.

I am absolutely disgusted that this has happened and ruined so many people's Christmas.

I do not think anyone is going to rest until we have ALL our money back and know how this has happened.

I know that there are talks of high street shops helping out but we are still not guaranteed ALL our money back.

The lottery fund surely has millions of pounds sitting in an account waiting to go to good causes, surely this is one of them.

This is nothing short of theft!!

All of these companies are now going to suffer as everyone I know will not take the risk of ever doing this again.

Angela Geddes.

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While the British Retail Consortium is looking underneath the furniture for its apparently lost sense of collective consciousness, and while there is much talk of 'Big Business' being in a position to help Farepak's customers, it seemed to us that what was required was action from a small business.

We have set up a collection scheme at www.creativepaperwales.co.uk whereby we make a contribution when people buy our eco-Christmas cards.

We are not 'Big Business' and this is likely to be all or nearly all our profits on these sales this year.

However, we cannot solve the whole problem alone - other small businesses should now follow suit and show the people of the UK, contrary to Margaret Thatcher's now infamous remark, that there is indeed such a thing as society.

It is not an airy-fairy concept dreamed up in a sociology department, it is a conglomeration of people who care what happens to others.

Lawrence Toms.

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I was an agent for Farepak for over 10 years - this year I have paid in for myself and my customers nearly £2,000.

I think it's disgusting that Farepak were allowed to steal our money, and also steal our children's Christmas.

Who gives them the right to do that?

I paid in my last £100 online a week before they announced that they had gone bust...why did they keep taking our money?

Heidi Askew.

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My mum had been saving hard for our Christmas and has now lost all her money along with her friends' money too!

She is now very unhappy and sad about her friends and her money.

Why is this allowed to happen?

My dad always says we must be honest and truthful but why was Farepak able to take our money and get away with it. It is just wrong!

Please do something to help!

David John (aged 14).

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I am a single mother on benefits and was saving with Farepak through my cousin who was an agent.

Not only have I lost the £240 saved with them, now I have to find the money to get the food which I thought I had.

My cousin is in a terrible state and has hardly left the house since this has happened.

Michelle Alexander.

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I was a Farepak agent - all my customers were friends and family and between us we have lost £3,090.

We are all either parents or grandparents, working or pensioners trying to spread the cost of Christmas without getting into debt.

The unscrupulous people behind this shambles should be made to sell their assets and surrender their savings to the honest folk they have ripped off.

I bet they won't be going without anything at Christmas.

Amanda Young.

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I was watching your programme this lunchtime and caught your Farepak story.

I am one of the many agents who's been caught up in this scandal.

I am concerned about £800 in total with Farepak - £400 is for my family, £200 is for my 83 year old mother and £200 for a disabled friend.

Thank you Working Lunch for pushing this story, and thank you Max Clifford for any advice given to our champions.

I have never watched your programme before as I thought it was not really for me, it just happened to be on when I switched on the tv and heard Farepak mentioned.

I enjoyed the rest of the programme and will make a point of watching it from now on.

Janette Kingsbury.

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What on earth is all this rubbish about Farepack?

What we have here is a group of foolish people who are unable to trust themselves to put money aside without spending it.

So, instead of doing that and earning interest on the money they chose to put it with someone else who wasn't going to give them any interest at all.

That makes a lot of sense, doesn't it?

Mike Jupp.

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Surely it would be in the interests of companies who provide a similar service to get together and try to do something for those Farepak customers who have lost a lot of money.

If only to enhance their own reputations and protect the industry as a whole.

After all, they are going to need to counteract the bad publicity or next year (and ongoing) could be very hard for them.

Kris Jones.

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It is easy to sympathise with those people who have lost a lot of money in the collapse of Farepak but I think a bit more objectivity is called for from Working Lunch on this.

It is important to question where the money has gone to. It is also important to ask why the bonding system turned out to be completely useless as any sort of safeguard.

However, when you invite on the programme the likes of Max Clifford who was encouraging people to immorally blackmail innocent third parties like the supermarkets, then the programme is going too far.

The people who lost money cannot be compensated out of other people's pockets, whether it is the taxman or the supermarkets.

We can all make what turn out to be poor financial decisions, as I and many other people did when we bought our Marconi shares and lost a lot of money.

You have to learn by your mistakes, however serious and damaging, and not expect others to bail you out.

Mike Dalton.

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I have lost £1,300 in this scandal if this had a normal person who had spent the Christmas club money they would have been jailed - but not if you are a company director.

Eleanor McKee.

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I heard about Farepak when one of my customers called me having heard about this situation on the news.

I have a small group of customers, resulting in an order value of £3730.

Farepak took my last payment on Friday 13th, which as we now know is the day they became insolvent.

I too feel morally obligated to give my customers their money back so that their Christmas is not ruined as mine is.

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, and not something I expect from a company I have worked with for several years.

Devastated does not describe how I, and my customers feel.

Alison Berry.

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I am the main bread winner & Christmas time is often stressful & difficult.

I have been saving & paying into an account with Farepak since January 06.

I have only just recently sent out my last cheque to them.

Words fail me!

I am now left with the worry of Christmas shopping. Furthermore, I may as well have been robbed, this is what Farepk has done to me.

Where on earth will I get the £789.75 that I have paid to farepak with nothing to show for it in return?

Jane McClelland.

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I have not been affected by this but know some parents who are.

I am a member of a website for parents in the UK and there are some mums on there who can now not afford christmas for their children as they are on low incomes and paid to get everything from Farepak.

Myself and a few other members of the site have decided to set up hampers which will be made up of food, gifts and toys donated by members to be sent to those who would otherwise not have a christmas due to this shambles of a firm.

We also think it would be a good idea to make this public and encourage people to donate anything they can to ensure nobody loses out on such a special time of the year.

Michelle Weeks.

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Just to let you know that we are more people who have just found out the devastating news about Farepak.

How is it possible that all these hamper companies have not got something in place for these circumstances?

I hope they realise that anyone with an ounce of sense will never put into one of these companies again and this industry is going to collapse unless they can come up with some kind of guaranteed pay out for people.

Do they not realise that the people who put into these savings scheme's are the people who are on a very tight budget, many people have saved and gone without to put that £5 - £10 in every week.

We are appalled and horrified that this kind of behaviour is still allowed to happen in this day and age, these are good honest people who have been badly let down.

26 people here have lost £8,500 between them and like many agents our agent Theresa Deakin has put in her own money to get the vouchers delivered early for her customers.

What a pity there isn't the same kind of loyalty within these companies.

Lesley Harrison.

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I have been an agent of Farepak for 11 years, I have had to tell my friends and family that they will not be receiving their shopping vouchers this year.

In total we've lost out on £4500.

Carol Wakeling.

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I think the owners of these companies should be made to pay with all the assets they own as I bet they will have money this Christmas. If I owed them money they would send the courts to my house.

A very annoyed customer, Susan Frank.

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I have been making weekly payments of £10 to ensure I can manage at Christmas, this scheme really helped me last year. I am a single parent with two children one of whom has autism. I am on income support and carers allowance I don't know how I will manage this Christmas now with this news. I also carried on payments for a friend that moved out of the area and now I have lost £500.

Maria McInerney.

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I'm devastated. I have collected and banked £6,500 religiously over the last 10 months. The people responsible should face criminal charges. They must have seen this coming and the law needs to be changed to protect people from this ever happening again.

These companies should not be able to have access to customers' money until all orders have been met. Gutted!!!

Adrian Hendry.

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I am a previous employee of Farepak and project managed their websites. The whole issue has been down to a very poor senior management structure which has resulted in revenue being re-used by the parent company, European Home Retail. This has now meant a shortage to pay suppliers up front. This then means that they are unable to fulfill orders. This has been in the pipe-line for the past 6 months.

Kevin Pickup.

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I heard about Farepak when one of my customers called me having heard about this situation on the news. I have a small group of customers, resulting in an order value of £3,730.

Farepak took my last payment on Friday 13th, which as we now know is the day they became insolvent. I too feel morally obligated to give my customers their money back so that their Christmas is not ruined as mine is.

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, and not something I expect from a company I have worked with for several years. Devastated does not describe how I, and my customers feel.

Alison Berry.

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I have two young children whose birthdays are in December as well as the cost of Christmas.

This was the best way for me to manage money so they could receive birthday and Christmas presents without any financial stress. When you read that this is safe and reliable as well as Farepak being a member of HITA you expect to be covered for any eventuality. This is extremely upsetting and has put myself and thousands of others into financial uncertainty.

Many people may go into debt to cover the cost of Christmas that they already had saved for! I have lost over £1,000 which I can not replace before Christmas.

Yvonne Hanlon.

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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. Also my daughter has no presents for her two year old daughter. My cousin has to tell her two children there will be nothing for them either.

A. Terry.

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My partner and I have saved with Farepak for three years, this year we had saved £1,800 between us, we can't tell the kids that Christmas has been ruined. Why don't all the creditors let the customers get paid back first, as a gesture of good will, I'm sure companies can afford the losses more than each one of the customers that have been affected can.

Lindsey Naylor.

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I have paid £300 to Farepak via my sister who is an agent for them. I have two children and I am currently on maternity leave from work and can not afford another £300 for Christmas presents. What has Farepak done with my money?

Sarah Collins.

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My friend and agent for them collects money from a group of our friends and pays to Farepak up to October each year for vouchers paid out in November as we have done for the past five years.

By chance I found out that they had gone under but they have not written to agents to let them know yet and are stating on the voicemail (which is the only response we can get) that no payments or refunds will be made. Do you know, or can you find out how we stand?

We are owed in the region of £1,500 and I'm sure there are hundreds who are owed the same, if not more, and will not be able to have a Christmas without it.

Bev Carter.

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Yet again it appears the people who can least afford to lose money have been robbed. The very nature and structure of these 'businesses' prey upon people who have difficulty in budgeting for Xmas, they exploit this vulnerability through a network of 'relatives and friends'. Why can't these people be persuaded to get involved with local credit unions, even set some up if none are in their area. The agents must have some business sense. Could you not try and get affected viewers in contact with credit unions?

Dennis Williamson.

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I am (was) a Farepak agent, my customers and myself have saved £2,090 with Farepak. Friday 13th they went into administration.

What I would like to know is have I got any hope of getting any money back for myself and my customers? I would also like to know if there is any come back on the management, who must have known the company was in trouble and waited until two weeks before all payments were due to be paid in, to go into administration.

Where has the money gone, and do any of Farepak's customers have a cat in hell's chance of receiving anything?

Diane Thornton.