High Street voucher company going bust.

[yvonne6]

I stand to lose £300.00 this Christmas because the idiots that run the company are incompetant. I am not the only one some people i know have lost a couple of thousand. The administrators have been called in and we have been told to 'wait' being a resident of the UK doesnt fill me with great hope as we seem to get stuffed at every opportunity. Has anyone else lost money? (its not the end of the world for me but it would have been nice to get the vouchers)

Peeved Yvonne

 

[CliveV]

Yvonne - we were just talking about this over the weekend - there but for the grace of God go ourselves. For many years my wife was a school administrator and they ran this Christmas club for all the staff. We saved a great deal and bought most of the childrens presents with the vouchers that were available. It seemed a good way to budget.

As I understand it there are many people at the school now who will have been caught

I feel very sorry for you - no doubt it will be a more difficult Christmas.

When I look back on it, we who saved with such schemes did not seem to get a lot more out of the scheme than we put in.

So I suggest for future reference a good cash ISA would probably be better. Requires a little bit more discipline not to take it out before Christmas but at least your capital is secure.

 

[Guest]

Have a look at the BBC Working Lunch web page. The programme has been featuring this Company for the last week and today it seems that a 'goodwill' package is being put together by some of the main retailers involved. What this will actually mean in terms of hard cash, I cannot say. Also it appears that Max Clifford is getting involved and hopes to get an 'awareness' campaign running in a newspaper. This may pressure the appropriate bodies to do something, but again don't hold your breath.

Evidently the Company concerned has lodged a 100k bond with its trade organisation, but what this is actually supposed to protect is unclear.

I can only hope that something is salvaged from this fiasco. No mention of the Company directors tho'.

 

[yvonne6]

I wonder if there will be any criminal proceedings taken against the directors. Apparantely

 

[Eddie1FromNottingham]

Hi.

I am just an old cynic, to think it strange, that a Christmas Club should go Bust in October, when all the money is in. As opposed to January when it it's spent!! I really do sympathise with the "Victims". As Scotch Lad says Keep an eye on working Lunch.

Eddie.

 

[Josef_374226726]

There was an article in the Sunday times this week about this company - a hamper costing

 

[Ogre]

I have a Golden Rule which has served me well over 60 years.

If you can't SEE what you are buying, and you can't CHECK the value and quality.....then don't have anything to do with it.

Some years ago, I broke this rule, and used a NW shoe Mail Order Firm. Site rules prevent me from naming the firm (unfortunately). They were the shoddiest, tattiest and most badly made shoes that I've ever seen. Absolute manure. The sole went through within a month, and the quality was an absolute joke.

It's like the lottery. Put

 

[CliveV]

I agree with what you say to a degree Kieth. But a jamjar of money is more vulnerable than a good savings account. After all your home can be burgled.

As for the scheme being a rip of - it wasn't for us.

We saved within the scheme and took the money out as vouchers to be spent at various stores. This worked well as our kids got older as they wanted the vouchers to spend in the post christmas sales!

As for the lottery - that is not saving - that is gambling and cannot be compared to any form of savings scheme.

My 20/20 hindsight view is that these schemes give you no interest on your money. Whereas the supermarket scheme we use at thye moment kicks off with a bonus

 

[Tina3]

What about the company(loan company) that is offering to loan people the amount they have lost at YES WAIT FOR IT 177% APR !!!!!!! Clive if you are out there surely this has got to be illegal ???????????

 

[Damian]

Tina, the offer of the money by the company and the extortionate interest rate is nothing more than preying on the already vulnerable, but people do not HAVE to take the offer

If they cannot see the difference between bank rates and the 117% as quoted, what hope is there for them.

Provident are notable for their interest charges on short term loans.

 

[Damian]

oops 177%

 

[CliveV]

Sadly Tina I do not think such horendous interest rates are in this country.

I am pretty certain that some EU countries put a cap on the APR that can be charged.

It's about time we did the same.

I have not heard of this company but it does not surprize me. If you have the name I will do some checking.

 

[CliveV]

Sadly Tina I do not think such horendous interest rates are in this country.

I am pretty certain that some EU countries put a cap on the APR that can be charged.

It's about time we did the same.

I have not heard of this company but it does not surprize me. If you have the name I will do some checking.

..are illegal in this country

OOPs dept

 

[Guest]

I don't know about the Company mentioned offering loans, however Credit Unions are offering loans, if people so wish, at interest rates of 2% per month. That is pretty high to me, but I suppose is similar to credit cards. I think the point that was being made was that this was not a scheme to just screw already distressed people, but a way, if they so wished, to replace the money lost in time for Xmas. Of course the debt still has to be paid off, and the money in the hamper Company is probably a dead loss, but as the individual loss seemed to run around 300 pounds then it may be a way for some people to get through Xmas, and then sort it all out. At the end of the day, it is a personal choice as to what you do. I am more concerned with the agents, who have in total innocence and of course were supported by friends and family, now be castigated by their peer group, and who also have lost personal money. A double whammy.

It is a very sad state of affairs, but in the context of people who have lost their whole pensions, possibly not so extreme.

 

[Tina3]

Sadly Tina I do not think such horendous interest rates are in this country.

I am pretty certain that some EU countries put a cap on the APR that can be charged.

It's about time we did the same.

I have not heard of this company but it does not surprize me. If you have the name I will do some checking.

Clive see above, the co. is mentioned ! quick though before we have another *&* disaster and its deleted !!!

Tina

 

[Tina3]

Hi Danian

I fully understand what you say ,but you and I are perhaps are in good financial positions,the fact that these people have to save weekly for toys for xmas suggests they find it a struggle,therfore unlikely to qualify for a bank loan! people WILL go to deperate (irrational)measures for their children,especially at xmas,and if thrown at them(these people have been hounded at home) will most likely succumb(?)

Even loan sharks dont charge 177%, credit cards have recently been ticked off,there should be as clive states a maximum APR allowed !

Tina xx

 

[Guest]

I think one may have to define poverty in this context. The people interiewed on the tv, for example, were neither rich, not dare I say it, on the breadline. They were ordinary people who had incomes. I suspect the majority had entered the scheme because of the social position. They either knew the agent, or entered through social interchange. similar to Tupperware parties for instance. It can be very easy to be 'persuaded' when your peer group are involved. Also as the scheme had been running successfully for many years, there would have appeared to be little risk. I think that is a question that needs to be answered. Why did a Company that had traded happily for many years suddenly?? go bust, especially after collecting the majority of a years supply of money. There were no overheads to speak of.

However, at the end of the day I don't believe it is practical to control money supply in the current world. People who are rejected will always find an alternative, even if that means the mafia. Interest rates are actually one way to restrict demand so to speak. As has been mentioned in this thread there are other ways to save money for a special occasion, and can be more profitable than just giving it to a third party organisation with no return of interest. That is why I suspect it was the social aspect that was the 'glue' in this affair.

 

[Eddie1FromNottingham]

I think one may have to define poverty in this context. The people interiewed on the tv, for example, were neither rich, not dare I say it, on the breadline. They were ordinary people who had incomes. I suspect the majority had entered the scheme because of the social position. They either knew the agent, or entered through social interchange. similar to Tupperware parties for instance. It can be very easy to be 'persuaded' when your peer group are involved. Also as the scheme had been running successfully for many years, there would have appeared to be little risk. I think that is a question that needs to be answered. Why did a Company that had traded happily for many years suddenly?? go bust, especially after collecting the majority of a years supply of money. There were no overheads to speak of.

However, at the end of the day I don't believe it is practical to control money supply in the current world. People who are rejected will always find an alternative, even if that means the mafia. Interest rates are actually one way to restrict demand so to speak. As has been mentioned in this thread there are other ways to save money for a special occasion, and can be more profitable than just giving it to a third party organisation with no return of interest. That is why I suspect it was the social aspect that was the 'glue' in this affair.

Hello, Scotch Lad.

Very well put. Your view was borne out by Working Lunch, who seem Determined to keep this on the Boil. It seems that for the Members of this type of Savings Club, that Saving to-gether is the impetus, the feeling of belonging, the old fashioned "Clubbiness". The Collection of the Weekly Ammount by a Friend or Relative, all this gives them the Determination to contribute their Weekly Subs, for, perhaps in their minds a missed Week will be seen as Bad Form by all the Others in that Group. Most people know and recognise that there are Dozens of alternative Savings Schemes available. Unfortunately with these you have to have the sense of purpose and commitment to take or Send your Cash to your Chosen Provider. Also the Drawback to this, is of course the Temptation to take the Money out before Christmas. I also think that some commentators have been a bit Harsh. "Christmas Clubs" have been around for Hundreds of years, my Granparents used them and indeed did my own Parents They have always provided a Service for People who for whatever reason feel unable to Save any other way, and to my knowlege have never failed untill now. It is this Correlation between Christmas and dissapointment that makes this seem so sad, Almost as if someone had Killed Santa. Seriously, I hope that before Next Year these type of "Clubs" are Regluated by the Finances Act and that measures are in place to prevent a re-occurence. If Not, then look for an alternative.

Eddie.1. From Nottingham

 

[yvonne6]

I dont think the practice of people putting away money every week suggests that they are poor, i think most save up for christmas just so that come November a huge chunk of their salary doesnt disappear in one go. My vouchers would have been used for the January sale at Debenhams, my main gripe was that the idiots that ran the company will be shortly off sunning themselves in some tropical location for christmas whilst some families do without a few things and they probably will not be made accountable for the huge loss of money. I think we caravanners should rise up and be a nation again put the Great back into Britain ohhh i come over all patriotic, need to go for a lay down in a dark corner!! By the way any ideas as to what could have happened to it?

 

[Tina3]

yes I agree with yvonne and scotch lad,didnt mean everybody that chooses this form of saving are poor, was thinking more about the single parents etc.. etc.. out there who DO use this method for xmas because they love thier kids and pressure makes them "keep up with the jones's" Dont want to sound like I am labelling everyone.

Tina x

 

[Guest]

For anuone who is lloking for further information on this, the following website may be helpful.

http://www.unfairpak.co.uk/
The BBC programme 'Working Lunch' has been covering a lot of this affair, but today all they could advise was that:

The DTI is looking into the affair

A 'goodwill' package is still being worked out

Cheques sent to the Company after 4.30 pm on Friday 13th will be returned uncashed

The directors are still 'unavailable'

Not a lot of comfort there I am afraid.