Anniversary of Farepak collapse - still no justice say savers. Embargo: 00.01 Sunday 14 October 2007 (12/10/07)
On the anniversary of the collapse of Farepak, the Christmas hamper company, new research based on interviews with Farepak victims reveals that they believe they have not had justice.
Early findings from research carried out by Dr Basia Spalek, of the University of Birmingham in collaboration with the Centre for Crime and Justice Studies at King's College and UNISON Welfare show that:
- Farepak victims say they have not had compensation and that because nobody has been held responsible they feel that they have not had justice.
- Most of the savers were women who were being `prudent' and used the scheme to manage household finances and paid a high cost as a result.
- Many had saved with Farepak for decades and were given no warning that their savings may be at risk.
- Some victims had been forced into a cycle of debt, despite being careful savers.
- Many victims still want to know where their money went and want those who ran Farepak to be held accountable for the loss of over £40 million.
Dr Basia Spalek of the University of Birmingham, who conducted the research said:
'The idea that Farepak savers could protect themselves from the company's collapse is clearly challenged by this research. Policy discussion should be focused on the long term impact of financial harm and the appropriate regulatory responses, rather than the constant obsession with the slackening of consumer rights and company responsibilities.'
Will McMahon, Policy Director of the Centre for Crime and Justice Studies, King's College London said:
'Farepak customers have still to receive compensation for the loss of their Christmas savings. Many are asking why, if the government was prepared to underwrite Northern Rock to the tune of billions of pounds, no comprehensive help has been forthcoming. As it is, a significant source of social injustice remains hidden and unaddressed by government and the financial authorities and other `Farepaks' are inevitable.'
Chair of the Farepak Victims Campaign Louise McDaid said:
`Many Farepak victims feel that there has been no justice, just a lot of so called money experts giving us advice on how we should save in future. It is a pity that they were unable to let us know that Farepak was not regulated in the first place. Government had and has a responsibility to protect Farepak victims. If Government could guarantee Northern Rock savers that their money was safe then why could they not do the same for the Farepak victims?'
She added:
`Why has no one been charged with stealing our money? If I had taken the money then I know for a fact that I would have been taken to the local police station charged, appeared in court and sentenced. Yet millions of pounds have disappeared from those who saved to help at Christmas and absolutely nothing has happened.'
For Further information:
To arrange interviews with the author or for further information contact:
Will McMahon, CCJS on 020 7848 1695 or 07968 950223
Notes to editors:
- There are no case studies for interview because of the confidential nature of the research process. The launch of the full research report, which will carry quotes from interviews of Farepak victims conducted in August and September 2007,will take place in the House of Commons on Monday November 19 2007. Over 150,000 Farepak savers lost Christmas savings when the company collapsed on Friday 13 October 2006.
- The research is co-funded by the Centre for Crime and Justice Studies and Unison Welfare (an charity for the benefit of UNISON members). Unison Welfare set up a fund to help UNISON members who were the victims of Farepak closure.
- The Centre for Crime and Justice Studies at King's College London is an independent charity that informs and educates about all aspects of crime and criminal justice. We provide information, produce research and carry out policy analysis to encourage and facilitate an understanding of the complex nature of issues concerning crime. www.crimeandjustice.org.uk
- The Farepak research is being conducted by Dr Basia Spalek of the University of Birmingham and is published as part of the Harm and Society project, a policy development project of the Centre for Crime and Justice Studies. The project aims to stimulate debate about the limitations of criminal justice and promote alternative perspectives on social harm, crime and social policy.
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