Farepak victims get cash boost from relief fund

Scores of Belfast victims who lost money in the collapse of the Farepak savings scheme have received a cash boost ahead of Christmas.

Farepak Response Fund shop vouchers worth £3,105 (€4,600) and food hampers have been issued to Linda Robinson, 36, who gathered money from friends and relatives for Christmas.

The group of 27 faced a holiday crisis after learning their kitty worth more than £19,500 (€29,000) when the company went into administration in October.

“It is a relief to receive this money but I will never get involved in anything like this again. It would make you very wary of things like savings stamps,” she said.

“We had money saved to take the kids away for a day out here and there and had to use it for Christmas. We have still received nothing back from Farepak and they are talking about returning four to five per cent so people with savings of say £200 (€300) will get eight or nine pounds back.”

The mother-of-one, who lives in south Belfast, had saved almost £3,000 (€4,500) herself and was one of an estimated 3,000 people around the North who lost out.

The aid was gathered after donations from companies like Sainsbury’s and individuals, including MPs.

South Belfast MP Alasdair McDonnell has spearheaded efforts in his part of Belfast.

About 150,000 people are estimated to have lost a total of up to £50m (€74.5m) when the firm went under.

Next year administrators who took over the running of the firm after its collapse expect to pay victims 4-5p for every £1 saved.

Ms Robinson added: “We also received three hampers. They had 30 bottles of beer, biscuits, sweets and Christmas puddings.

“I am very happy with the Response Fund, very happy that they took the trouble to help us because at the end of the day it was nothing to do with them. It was just a goodwill gesture and I and all the customers appreciate it.”

More than £5m (€7.4m) has been raised by the Response Fund for victims across the North and the UK.

Farepak’s demise has prompted calls for better consumer protection against companies folding.