Victims of the 2006 collapse of Farepak will be receiving cheques over the next two weeks of between £5 and £50.

The joint liquidators of failed Christmas savings scheme Farepak have announced that thousands of victims will get some money back, three years after the firm went bust.

A High Court judge has ruled that cash from a trust fund set up shortly before Farepak’s parent firm went bust can finally be paid out.

There has been a lengthy delay in confirming whether the Trust fund would be paid out as it had not been set up correctly and needed a court to decide whether it was a Trust at all.

According to reports, pay-outs of between £5 and £50 will be paid out to approximately 5,900 customers over the next two weeks – totalling £240,000 – just a fraction of the £40 million lost when the firm collapsed in 2006. 

In a statement from the liquidators, it said that the cheques, and High Court ruling, would not affect the estimated dividend payout to customers of 5p in the £1, “but any Customer who receives a cheque will have their claim reduced to take into account that they have received a cheque from the Trust.

The collapse of Farepak has not deterred people from using the schemes as an efficient way to save for Christmas. Park Christmas Savings is one of those schemes which is benefiting from a rise in customers following the implementation of new rules to protect savers’ cash.

Mark Lucius of Park, said: “People are realising they cannot live outside their means. We currently have 420,000 customers and we’re hoping to attract half a million for 2009.”

The joint liquidators – BDO Stoy Hayward – have said that although all claims from agents and customers have been finalised, if anyone wishes to submit a claim but hasn’t already done so can write to the Claims Management Team.

For the claim address and further Q&A’s, please visit: www.farepak.co.uk