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Former Farepak customers to get half their cash
FORMER Farepak customers will be paid back about half the money they lost in the collapse of the Christmas hamper business, according to liquidators.
Business services firm BDO said they will make dividend payments to Farepak's creditors, including customers and agents, at the end of next month.
They confirmed that a payment of about 32p in the £1 will be made, including the £8 million which Lloyds Banking Group announced it was making available to former Farepak customers last week.
When added to the 17.5p in the pound given by the Farepak Response Fund charity, set up by the Government in 2006, customers will have received a total of approximately 50p in the pound, BDO said. The liquidators said they will aim to make dividend payments to Farepak's 114,000 creditors at the end of August, which will for them mark the end of the liquidation of Farepak.
Credit Union adivsor David McMullan, helped dozens of affected families in the Rossendale, when the firm crumbled six years ago.
He said: “This is great news for all those people affected.
“Those families directly affected should now recieve about a third of the amount they should.
“However it is a shame the people affected could not apply for compensation in the similar manor victims of crime can claim for criminal injury compensation.”