Farepak Fiasco

I’ve been reading about the Farepak fiasco over the last couple of weeks and shaking my head in disbelief at the whole debacle. For those that are unsure what I am on about, Farepak was a hamper company where people paid in cash amounts to a scheme to receive a hampers and food vouchers for Christmas.

I must confess to thinking hampers were a thing of the past and just not in vogue anymore but it seems they are still in demand, surely with advent of massive supermarkets and internet home shopping they are surely to become defunct?

Anyway, people do still pay into hamper schemes – by the thousands. Farepak it seems had a good reputation, they had been established since 1969 and sold electrical goods as well as hampers, they employed over 35,000 agents across the UK.

The real reason why they have gone under is unclear as there seem conflicting stories but it began with a statement from representatives of the company who said “We have conducted an immediate review of the Farepak business and it is with real regret that it has been necessary to cease trading”. The end result More than 150,000 customers mainly on low incomes lost an average of £400 each, although some lost closer to £2,000. Following that stories were rife, the boss of Farepak Mr Gilodi-Johnson, whose father founded Farepak said he regretted the situation, and blamed HBOS which the bank denied, hardly comfort for people that were going to have a bleak Christmas. The day to day Boss of Farepak Mr Clive Thompson took a holiday to Argentina whilst speculation arose as to the whereabouts of 40 million of savers money. So following that a fund was set up to help the victims, HBOS the bank that refused to support Farepak because of a 1.5 million shortfall contributed (some said out of guilt), among many others but the contributions have hardly come thick and fast. The end result being that the fund is due to close soon with the schemes clients expecting to get 15p back for every pound they paid in. Only 10% of the money lost has been recouped by donations. There is of course and enquiry under way by the trading standards though this is little comfort for the people having to find cash all over again for Christmas.

But this is was bugs me; Only 70 politicians made donations. Why is so much given in foreign aid yet little given to our own in times of need? My dear gran capped it all off for me with a phrase she often uses “Charity begins at home”. Though in this instance it sadly isn’t right, people, businesses and organisations happily donate to people abroad, because it raises their profile, yet thousands will go without this Christmas in this country. To me that is truly shocking one of the worlds most giving nations cannot give to their own in times of need.