Farepak pays out after six years of campaigning

After six long years, Farepak, the Christmas shopping saving scheme, has finally paid out.

When the company collapsed back in 2006, it left numerous people facing a miserable Christmas after thousands of pounds in savings were lost.

Workington MP Sir Tony Cunningham, a chief player in the campaign to get compensation for those who lost money, has welcomed the news.

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According to the newsandstar publication, he said: "Some people are going to be getting £100 just before Christmas - so they're delighted."

"The collapse of Farepak was in the news for quite a bit but we had to keep it going and we did. I'm pleased that people are getting something back - although it's not ideal."

When the company collapsed six years ago, almost 120,000 people lost an average of £400 each, prompting both the Office of Fair Trading and the Farepak Victims Committee to campaign for businesses which operate such schemes to establish measures that would protect their customers.

Following this, the Co-operative group has launched a scheme, which will be launched in the New Year and will be set up in such a way that will mean savers don't loose out in the event the company goes bust.