Post by admin on Nov 27, 2006 13:17:48 GMT 1
CUSTOMERS of a hamper company, which went bankrupt, have been offered a lifeline by the Rossendale credit unions.
The financial institution is offering low cost loans, subject to committee approval, to the hundreds of people who can prove they lost out when national company Farepak Hampers collapsed.
In Bacup it is known one agent had collected £16,000 and in Whitworth another had collected £9,000 from customers who expected to receive a £400-£600 hamper full of food, goods and vouchers at Christmas. Now they will receive nothing.
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But people who have lost out can take their proof of payments into the local credit unions and they will offer a loan to the value of the lost money at a rate of just 1.5 per cent interest.
Diane Myrtle collected for Farepak Hampers in the Water and Lumb area. She had banked £13,000 for the company when she was told by a customer that they had gone bankrupt.
Diane, of East Bank, Water, said: ‘I spent the Monday and Tuesday going round all of my customers’ houses to tell them what had happened and I left in tears.
‘I had orders worth more than £14,000 and have been doing this for 22 years in the village. People had spent from £50 to £800 and it is very upsetting for me because these customers are friends and all people I know.
‘I lost £600 myself and my commission, but I am not bothered about that, it is the losses other people have had that is my main concern.’
When she was told of the offer from the credit unions Diane went to visit all her customers to explain it to them.
Assistant loans manager for Bacup Credit Union Michele Tarrant said: ‘We are offering people a loan if they can bring in their payment card, we will offer a loan equivalent to what they have put in, subject to approval.
‘The average doorstep lender will charge a much higher rate. I have known people loan just £200 but have to pay back £300, but if people are struggling for money they will do it and take out money from these lenders.’
David McMullan, development officer for East Lancashire Finance which incorporates all of Rossendale’s credit unions, said: ‘We want to ensure people can still have their Christmas and hopefully get them into a new habit.
‘I have had one of these hampers before and the food and drink is all names you have never heard of. They are giving the money to the company and gaining no interest from it. If they put the money into the credit union instead they would be able to earn a dividend as well as save and then use the money to buy better products by manufacturers they know.’
For more details call in at the credit unions in Bacup, Rawtenstall and Haslingden and Helmshore or call 601809.
Catherine Smyth
First published by the Rossendale Free Press
The financial institution is offering low cost loans, subject to committee approval, to the hundreds of people who can prove they lost out when national company Farepak Hampers collapsed.
In Bacup it is known one agent had collected £16,000 and in Whitworth another had collected £9,000 from customers who expected to receive a £400-£600 hamper full of food, goods and vouchers at Christmas. Now they will receive nothing.
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But people who have lost out can take their proof of payments into the local credit unions and they will offer a loan to the value of the lost money at a rate of just 1.5 per cent interest.
Diane Myrtle collected for Farepak Hampers in the Water and Lumb area. She had banked £13,000 for the company when she was told by a customer that they had gone bankrupt.
Diane, of East Bank, Water, said: ‘I spent the Monday and Tuesday going round all of my customers’ houses to tell them what had happened and I left in tears.
‘I had orders worth more than £14,000 and have been doing this for 22 years in the village. People had spent from £50 to £800 and it is very upsetting for me because these customers are friends and all people I know.
‘I lost £600 myself and my commission, but I am not bothered about that, it is the losses other people have had that is my main concern.’
When she was told of the offer from the credit unions Diane went to visit all her customers to explain it to them.
Assistant loans manager for Bacup Credit Union Michele Tarrant said: ‘We are offering people a loan if they can bring in their payment card, we will offer a loan equivalent to what they have put in, subject to approval.
‘The average doorstep lender will charge a much higher rate. I have known people loan just £200 but have to pay back £300, but if people are struggling for money they will do it and take out money from these lenders.’
David McMullan, development officer for East Lancashire Finance which incorporates all of Rossendale’s credit unions, said: ‘We want to ensure people can still have their Christmas and hopefully get them into a new habit.
‘I have had one of these hampers before and the food and drink is all names you have never heard of. They are giving the money to the company and gaining no interest from it. If they put the money into the credit union instead they would be able to earn a dividend as well as save and then use the money to buy better products by manufacturers they know.’
For more details call in at the credit unions in Bacup, Rawtenstall and Haslingden and Helmshore or call 601809.
Catherine Smyth
First published by the Rossendale Free Press