Burt calls for protection for Christmas savings schemes

2.45.58pm GMT Fri 10th Nov 2006

West Midlands Liberal Democrats MP, Lorely Burt has spoken out in parliament calling for protection for savers following the collapse of Farepak, resulting in the loss of £40million from around 150,000 people saving to buy their Christmas presents.

Lorely, the Liberal Democrats small business spokesperson, attacked the companies involved and called on the Government to give customers better protection.

Commenting, Lorely said "Three Christmas scrooges have contributed to the prospect of a miserable Christmas for thousands of families:

"The British Retail Consortium should be ashamed of itself for initially agreeing to help Farepak customers, and then cruelly withdrawing this offer.

"Why did Halifax/Bank of Scotland allow HER (Farepak's parent company) to raid Farepak's coffers using savers money to prop up their own activities, when it should have known the company was insolvent?

"The receiver of EHR also recently sold assets worth £34m - will any of this reach Farepak customers?

"I welcome the announcement that the DTI is to investigate the circumstances of this collapse and I will be pressing for improved regulations to give the same protection for people in savings clubs that are currently given to those in credit unions ."