Around 120,000 customers hit by the collapse of the Christmas hamper firm Farepak have been offered an estimated 15p for every pound they lost. The amount is three times what they were expecting to receive, but at a total of around £4m ($6.2m) it is well below the £38m they hoped for.
Farepak ran a savings scheme which helped people to spread the cost of Christmas provisions across the year. The business failed in 2006, leaving savers with an average loss of £400. (BBC)
Long term readers will be aware of my general loathing of Christmas clubs - but if you are not then read my post Money tip #3 – Don’t save with Christmas clubs. I thought this headline was worth brining to people's attention as thousands of people still use Christmas clubs despite the Farepak scandal. Admitedly the level of industry protection has improved but Christmas clubs still don't make financial sense.