Committee chairman John McFall MP said: 'I want to see early action from the Government, the Office of Fair Trading (OFT) and the Financial Services Authority (FSA) to consider how appropriate safeguards can be introduced to ensure that such a situation never happens again.'
More than 150,000 Farepak customers lost millions when the Christmas savings club collapsed without compensation last month. Administrator BDO Stoy Hayward said customers are only likely to receive 4p to 5p for every£1 they paid in.
MPs are calling for watchdogs, such as the FSA and OFT, to have more powers to safeguard people's money. The committee said it wanted to see evidence of 'substantial progress' on consumer protection by the end of January.
According to an ICM poll conducted for Retail Week, three-quarters of the British public believe that Farepak's directors should compensate its customers.
The Farepak Response Fund, set up to compensate those who lost money after the saving's club collapsed, is due to close by the end of today.
The response fund has raised£5.8 million - only about 10 per cent of the money lost.
Farepak Response Fund chairwoman Shirley Young said she is 'very disappointed' that more has not been raised.
Dumfries Labour MSP Elaine Murray, who urged political colleagues to contribute, said she was also very disappointed by the response.
According to the fund, only 70 politicians made donations, despite pleas in the House of Commons, Scottish Parliament and Welsh Assembly.
No comments yet