Directors of Farepak face legal action

DIRECTORS of the collapsed savings club Farepak could face legal action, it emerged today.

An official investigation into the firm by the Companies Investigations Branch of the Department for Business, Enterprise and Regulatory Reform has now been completed, Consumer Minister Gareth Thomas said.

In a written ministerial statement, Mr Thomas said the CIB was now taking independent advice on whether the evidence in its report warranted legal action.

He said: "The collapse of Farepak was dreadful for the thousands of people who lost money.

"The Government is working hard to prevent other families suffering similar problems in the future.

"We initiated a comprehensive investigation to establish the facts. We are now getting legal advice on whether there are grounds for further action."

Some 150,000 families lost about £40 million savings when the Swindon-based firm went into administration in October 2006.

Creditors, including customers, are only expected to get about 5p in every pound returned.