Farepak victims turn to doorstep lenders
Published On 28 November 2006
Those consumers who were caught out by the Farepak scandal are getting into financial difficulties and turning to doorstep lenders, according to a new report.Research by the BBC has found that many former Farepak customers are being targeted by loan sharks who charge extortionately high interest rates.
Janice Allen, National Consumer Council spokesperson, said: "It is a double scandal. The people who saved with Farepak thought they were doing the right thing. Now they find themselves forced onto expensive forms of credit."
Collapse of the Farepak hamper scheme has forced many families into debt as they have had to borrow funds to cover the expenses associated with the Christmas season.
Thankfully, some funds are being made available to assist those who have been left high and dry by Farepak's collapse in October.
Lisa Tuckwell, a consumer, told BBC investigators loan sharks had approached her with offers of high rate loans.
