Published on:
25
September 2014
Many people spread the cost of Christmas by saving throughout the year. Clackmannanshire Council Trading Standards Service is recommending savers use a bank, building society or a credit union to do this after local people lost their savings following the collapse of a popular Clackmannanshire business.
Trading Standards have been approached by an Alloa pensioner who had been saving for Christmas with a local company which has been dissolved. As a result of the shop closing and the company dissolving the pensioner has lost all of the money she had saved.
Christmas savings clubs and schemes are not regulated by the Financial Conduct Authority. This means you can't take complaints to the Financial Ombudsman Service, nor can
you get money from the Financial Services Compensation Scheme if your Christmas savings provider goes bust.
Some Christmas savings clubs are members of the Christmas Prepayment Association (CPA) which has developed a code of practice for the industry which includes rules about how their members must look after your money once you've handed it over. You can check if a savings club is a member of the CPA scheme by visiting www.cpa-advice.co.uk. Unfortunately, the Alloa business which has collapsed was not a member of the CPA.
Councillor Donald Balsillie, Enterprise and Environment Convener, said: "If you are looking to save small sums for Christmas, or another event, then you should consider using a bank, building society or Clackmannanshire Credit Union where your savings are covered by the Government-backed Financial Services Compensation Scheme."
You can find more information about Clackmannanshire Credit Union on ClacksWeb.
You can contact Clackmannanshire Council Trading Standards Service by emailing consumeradvice@stirling.gov.uk or by calling 01786 443322 for advice on savings as well as any other queries relating to fair trading and consumer protection.