Protection for Christmas savers

24th July 2012 from Family Fund

The Christmas Prepayment Association (CPA) has updated its Code of Practice to ensure customers’ payments are placed with a Financial Services Authority (FSA) authorised institution. This means that in the event of a bank failure, the FSCS will be able to return the money to fulfil orders.
Chair of the Christmas Prepayment Association, Derek Walpole said: “The Christmas Clubs that are members of the CPA allow hard-working families to save for Christmas in the knowledge that their money is safe.  We are delighted that we have been able to provide this additional protection and prevent the crisis that devastated so many in 2006.”

The CPA was set up following the collapse of the Farepak in October 2006.  At this time, the Family Fund stepped in to help save Christmas for thousands of families.

More than 300 parents with disabled children who the Family Fund helped were also Farepak agents.  It was at this point that the Family Fund was determined to help, not just its own families but also others who had planned their festive spending in a responsible way only to find themselves in a crisis not of their making.

Early this month, some six years later, families received confirmation of compensation at the rate of 32pence to every £1 saved.  Together with the 17.5 pence for every £1 saved already received through the Farepak Response Fund, this is a total of 50pence to every £1 saved.

Within days of the collapse, a meeting was held and papers were signed to form the Farepak Response Fund, chaired by CPA Chair and former Family Fund Chief Executive, Derek Walpole. 

Derek said: “When the Family Fund heard how many families the Farepak collapse was affecting, we knew we had to do something to help.  The hard work and dedication of all involved in the Farepak Response Fund was integral to helping those families in crisis weeks before Christmas.  I was delighted at the success of the Farepak Response Fund whilst maintaining business as usual at the Family Fund during an intensely busy period.  It has taken a long time for those families affected to get compensation agreed.  Whilst they will be happy to get something back, many lost hundreds of pounds at the fault of others.”

Details of which schemes this enhanced protection applies to can be found on the FSCS website www.fscs.org.uk.  Letters have gone out to customers to inform them of the changes.