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OFT 'save xmas' campaign comes to Scotland

OFFICE OF FAIR TRADING News Release (105/07) issued by The Government News Network on 25 July 2007

Following the collapse of the Farepak Hamper company last year, the OFT is launching a pilot scheme in Scotland on Friday (July 27) to help consumers decide how best to ensure they can afford to pay for Christmas.

The OFT was asked to carry out an awareness programme to help consumers understand their options when saving for Christmas by the Treasury. The pilot scheme in Scotland, where 31,000 consumers lost money after the Farepak collapse, involves working with Scottish community groups and partners to explain what options are available when saving for Christmas.

Materials include a leaflet, a short film, presentations, research findings, a leaflet and background information. A copy of the 'Save Xmas' leaflet can be downloaded at http://www.oft.gov. uk.

Radio and poster advertising will support the educational materials to help deliver the programme to user groups and consumers generally. Groups which are supporting the campaign include Citizens Advice Scotland, the Scottish Centre for Financial Education, and Young Scot. Following the Scottish pilot, activities will extend to other parts of the UK later in the year.

Kyla Brand, OFT representative in Scotland, said:

'Thousands of Scottish consumers were affected by the collapse of Farepak and community groups provided advice and options. The OFT is committed to working with such groups on the ground to increase knowledge and skills about savings, not only for this Christmas but for many more to come.'

Sue Cook, Head of Consumer and Business Education at the OFT, said:

'The programme aims to help families saving for Christmas to know and understand the characteristics of different ways of putting money aside.

If we can all develop skills to analyse and compare the different options it's easier to make the best choices for us and our families for Christmas and other short term saving.'

Kaliani Lyle, chief executive of Citizens Advice Scotland, said:

'The tragedy of Farepak was that its customers were doing everything right. They were prudently saving in advance for Christmas and were entitled to assume their money was secure. Understandably, some may have lost faith in such savings schemes. That's why it's more important than ever that people don't over-burden themselves with debt over Christmas. That's why we support this campaign.'

Councillor Robert Aldridge Edinburgh City Council Executive Member for Environment with special responsibility for trading standards, said:
'It is vitally important that families who want to set aside savings for the festive season get information about the options available to them. Hundreds of people were dealt a devastating blow with the collapse of Farepak last Christmas. Any help and advice we can give to residents to prevent a similar occurrence in the future must be warmly welcomed.'

NOTES

1. The 'Save Xmas' campaign will include working with community groups and partners across the UK to develop consumer education resources for organisations to use with consumers in their local areas. Consumer education is a key element of the campaign, which in the long term aims to equip consumers with the skills to: analyse the options available to them, make comparisons between different choices, make balanced judgements, assess levels of risk, research relevant information to make the best choice for them.

2. The UK campaign was launched on 1 June 2007 in response to the Farepak collapse last year. See press release http://www.oft.gov.uk/news/press/2007/79-07.

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