PRESS RELEASE
2 November 2006

Malcolm Moss stands by those affected by Farepak collapse

On Friday 13 October the hamper savings company Farepak went into administration after Halifax Bank of Scotland rejected rescue proposals. The demise of Farepak will leave thousands of families out in the cold this Christmas.

Local MP Malcolm Moss has signed an Early Day Motion in Parliament supporting all those who have been affected by the collapse of Farepak. EDM 2874 says “This House draws attention to the pivotal role HBOS has played in the collapse of Farepak, the Christmas savings scheme, whose bankruptcy blights the Christmas of half a million decent people, many of whom have been saving since January of this year.”

Mr Moss has also written to the Ian McCartney, Minister of Consumer Affairs at the Department of Trade and Industry, expressing his concern over the recent events and probing the Labour Government to take action.

Malcolm Moss MP says “I have had letters from constituents expressing concern over the loss of the money they have been saving. This Christmas will most likely not be one many of my constituents had planned. Money they had set aside, for what should be a time to celebrate, has effectively disappeared into thin air and that is not right.”

Halifax Bank of Scotland (HBOS), who in the last financial year reported a staggering pre-tax profit of £4.8 billion, are being held accountable for their role in the Farepak disaster. HBOS told Farepak back in August that they wouldn't lend them any more money. But the bank allowed the company to continue trading, and to carry on collecting customers' cash. The Early day motion MP’s have signed has called on HBOS to take responsibility for their pivotal role in the debacle and help the families who have lost out.

Malcolm Moss MP says “Christmas is an expensive time for most families. HBOS need to realize their role in Farepak’s demise and should act to correct these injustices.”