A SINGLE mum who worked for collapsed Christmas savings club Farepak remortgaged her home so she could pay back savers out of her own pocket.

Alison Berry, 33, was so upset at seeing friends and neighbours lose out when the company collapsed a year ago that she borrowed nearly £4,000 against her Wigan home.

The former agent gave the money to savers and has taken on two nursing jobs so she can keep up the repayments.

Mum-of-two Alison said: "A lot of my customers were close friends, or people I had known for years, and I felt responsible. "I re-mortgaged my home and it has put me in a difficult position, but I had to do it."

Alison's selflessness emerged as administrators said 122,000 Farepak customers can expect to receive just 5p in every pound they saved with the company. It means a typical customer, who paid in around £400, will receive just £20.

Alison said she hopes the Farepak directors will face legal action as a result of the collapse of the firm.

She said: "It has taken too long. There's going to be another Christmas gone by and had I not done what I have done with my customers they would still be waiting. I would be disgusted if there was to be no legal action."

Alison had nine customers who had saved money with Farepak and she offered to compensate all of them but some declined the offer. She paid back £3,730.

Among the customers Alison offered compensation to was Sue Smith, 40, from Standish, who lost £350. She said: "I refused to take Alison's money as I did not believe that it was her responsibility. But I would imagine that for many people, the money Alison paid out of her own pocket was a lifeline.

"I'm still very angry with Farepak and feel that they have a moral duty to fully compensate their victims."

Administrators BDO Stoy Hayward moved the company into liquidation last week. They will conduct a more detailed investigation into the reasons for the collapse with claims totalling £38m and whether any individuals should face legal action.

Suzy Hall, of lobby group Unfarepak, praised Alison's action.

She said: "It is exceptional to find someone doing this.

"Agents felt very guilty because they were the ones taking the payments. But it had nothing to do with them. They couldn't have predicted what happened."

Suzy, who is a member of the Christmas Prepayment Association (CPA), said savers need to be careful if they are considering contributing to a Christmas savings plan.

The CPA is drawing up a code of practice and she recommends that savers only pay into companies where money is held in trust accounts, which are controlled by independent trustees.

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