25-Nov-2006
FarePak - a kick in the teeth
One of the saddest stories to blog in the run up to Christmas must have been the story of FarePak going into administration with customers only likely to have received ~4p/£ in compensation following the collapse of the company.
FarePak attracted customers that would typically not be able to or not wish to place their money in traditional financial products. These customers were typically in the most financially disadvantaged group, but wiselt decided not to build additional debt and instead chose to invest for a great Christmas in a product that ought to have ring-fenced their cash and avoided them withdrawing in advance of Christmas.
The Daily Mail is reporting here that to add insult to injury, complainants are actually being charged 30p of FarePak's debt/minute to lodge a claim.....in other words they are writing off ~£7 of FarePaks liabilities with every minute that they spend on the phone trying to claim a 4p/£ compensation.
I don't know how many people saw it, but I was absolutely disgusted by a representative of Motley Fool on BBC News this morning. That correspondent showed a complete disregard to the circumstances of the FarePak customers and the circumstances which led them to FarePak's door, implying that it was an easy choice for them to choose another Financial product.
Whilst most of us take Christmas and all its treats for granted, it seems clear that the majority of FarePak's customers do not. Being able to make weekly or monthly deposits on account without the ability to withdraw the cash in advance of Christmas and protecting that investment was an important draw to these customers.. much like Tesco or Sainsbury saving stamps.
I will not denigrate companies that have not contributed to the 'fighting fund'; however I do applaud those that have unequivocally decided to make a contribution to the fund, helping some of the poorest in UK society that did not have a great choice in preparing for an extremely commercial Christmas.
Motley Fool..... I am ashamed of your representative on BBC News today. He showed absolutely no compassion or even an understanding of the circumstances of the vast majority of FarePak customers and was no way an ambassador for your company; instead he came across as arrogant and ignorant.
Shame on you Motley Fool - I have always held your site in the highest regard, but no more......!!
FarePak attracted customers that would typically not be able to or not wish to place their money in traditional financial products. These customers were typically in the most financially disadvantaged group, but wiselt decided not to build additional debt and instead chose to invest for a great Christmas in a product that ought to have ring-fenced their cash and avoided them withdrawing in advance of Christmas.
The Daily Mail is reporting here that to add insult to injury, complainants are actually being charged 30p of FarePak's debt/minute to lodge a claim.....in other words they are writing off ~£7 of FarePaks liabilities with every minute that they spend on the phone trying to claim a 4p/£ compensation.
I don't know how many people saw it, but I was absolutely disgusted by a representative of Motley Fool on BBC News this morning. That correspondent showed a complete disregard to the circumstances of the FarePak customers and the circumstances which led them to FarePak's door, implying that it was an easy choice for them to choose another Financial product.
Whilst most of us take Christmas and all its treats for granted, it seems clear that the majority of FarePak's customers do not. Being able to make weekly or monthly deposits on account without the ability to withdraw the cash in advance of Christmas and protecting that investment was an important draw to these customers.. much like Tesco or Sainsbury saving stamps.
I will not denigrate companies that have not contributed to the 'fighting fund'; however I do applaud those that have unequivocally decided to make a contribution to the fund, helping some of the poorest in UK society that did not have a great choice in preparing for an extremely commercial Christmas.
Motley Fool..... I am ashamed of your representative on BBC News today. He showed absolutely no compassion or even an understanding of the circumstances of the vast majority of FarePak customers and was no way an ambassador for your company; instead he came across as arrogant and ignorant.
Shame on you Motley Fool - I have always held your site in the highest regard, but no more......!!
Labels: administration, FarePak, Motley Fool
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