Rules must be tightened to prevent repeat of Farepak collapse

Commenting on the announcement that the investigation into the collapse of hamper company Farepak has been completed, Liberal Democrat Small Business Spokesperson, Lorely Burt said:

“There is an obvious inequality between the protection given to people who save with high street banks and those who put their money into schemes such as Farepak.

“If any wrongdoing can be proved, ministers must ensure that those responsible are brought to book.

“In these harsh economic times, when food and fuel prices are skyrocketing, it is crucial that the rules are tightened to ensure small savers are never again left high and dry in this way.”

It is estimated that 12,000 people in Wales lost their savings in the Farepak failure.