This Is Guernsey

By Tom Edwards

PEOPLE owed money after the collapse of Farepak will not see any money before Christmas. About £40m. was lost when the savings club went into administration in October 2006.

It was initially thought that 22 Guernsey families had lost about £10,000, but now it is believed the loss could run into hundreds of thousands.

Susan Robins said she was just one of possibly 50 agents operating here.

‘I couldn’t tell you exactly how many other agents there were in the island,’ she said. ‘I was just one and I had 22 customers whose combined loss was around £10,000, but I think you could be talking hundreds of thousands altogether.

‘I lost £1,600 myself, but luckily my husband works so we managed to just about salvage Christmas last year.’

Farepak customers paid money monthly to save for Christmas, receiving hampers or vouchers to spend in shops.

To date, more than 122,000 claims totalling approximately £38m. have been received from customers, according to the BBC.

Victims have been promised compensation eventually, but will receive only about 5p in the pound.

Farepak’s liquidators say they are unable to pay out because of the ‘unprecedented number’ of claimants.

‘I received a letter telling me that Farepak had sold off its assets and hopefully everyone will get 5% of their money by the end of January,’ said Mrs Robins.

‘But they have said before that it would be October and now they have delayed it so I’m not really that optimistic to be honest.

‘It’s only a small amount that we are getting back, but at least it’s something and it would have been nice to get it before Christmas.’

According to the BBC, University of Birmingham researchers found that many customers had been forced to borrow money from relatives or had taken out loans after losing money.

St Martin’s Marks and Spencer’s manager Cara Carre said she hadn’t expected to receive a penny from Farepak.

‘I lost £450 and I got £75 back in vouchers but I couldn’t use them anywhere other than Woolworths, and who does all their shopping there?

‘As far as I am concerned, to get anything else would be an unexpected bonus.

‘It’s due to everybody else who lost out and not just me, but it is our money and we are entitled to it.’