Banff & Buchan MP and SNP Work and Pensions spokesperson, Eilidh Whiteford, has issued a Christmas Eve appeal to the UK Government calling for compensation for Farepak families, who are still waiting for reparation four years after the collapse.
Comparing the UK Government’s response to bailing out the banks with Farepak, Dr Whiteford has written to Business Secretary Vince Cable, asking why 20,000 Scottish customers, who lost their Christmas savings in 2006 are still out of pocket.
Commenting, Dr Whiteford said:
“The UK Government bent-over-backwards to bail out the banks but hasn’t found a single penny for the Farepak families, many of whom are in Banff & Buchan.
“It is four years since Farepak collapsed, but that nightmare of Christmas past is still being felt by many low income families. Savers are likely to recover just 5p in the pound, while the final bill for the administrators and their legal advisers could reach £3m.
“It is simply disgraceful that, years after the company collapsed, that customers are still waiting for their money back.
“The UK Government needs to bring forward compensation for these families, particularly given that it was its failure to secure adequate consumer protection through regulation that allowed the Farepak Christmas crisis to happen.
“UK Ministers should step in without further delay to secure compensation for those who lost out so badly.”