The hamper schemes are forms of lay-by. So if the company goes bust you might not get your money back, although you are classified as a creditor with priority over unsecured creditors and even some secured creditors.
Mrs Christmas folded in 2009, although rival Chrisco picked up its customers and provided them with a comparable hamper from its catalogue. However, Chrisco customers are similarly vulnerable under our Layby Sales Act.
For the schemes that are cards or vouchers, the recent collapse of Total Experience – a company which provided vouchers for Christmas gifts and services and was still trading 3 weeks before going into liquidation – is a warning to consumers of the risks they run. This issue is in the news again with the Whitcoulls and Borders book chains going into voluntary administration.
Hampsta says the funds invested in its Christmas shopping card are held with the Public Trust.
Report by Amanda Lyons.
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