4 December 2006
Consumers who were caught up in the Farepak collapse and paid for their saving via their credit cards are being urged to check whether they are entitled to refunds.
Credit card transactions over £100 are automatically insured by the consumers' credit lender so that if the retailer you paid does not produce the goods, the consumer can claim the money back from their credit card company.
For credit cards, the legislation is legally binding under the Credit Consumer Act of 1974. The system is known as charge back and can also apply to some debit cards.
HSBC, the lender that processed all debit and credit card payments to Farepak and so is liable to pay out under the chargeback scheme, has told the Telegraph that about 30,000 customers who are entitled to claim their money back have yet to do so.
Despite having the customers' postcodes and credit card details, HSBC has not been allowed to tell many of the consumers the good news because of data protection issues, so it has appealed to them through the press and by posting notices on its website.
HSBC has already paid out £800,000 and could be liable for as much as £4 million. Anyone who feels they are entitled to a refund has been told to contact their card provider who in turn, will contact HSBC.