The Co-operative Group has this week launched a pioneering new savings scheme trust, becoming the first retailer to protect customers paying into a saving stamps scheme.
The trust, which sets a new benchmark in consumer protection following the Farepak collapse, has been created to provide additional security to thousands of Co-operative Food customers using the scheme, many of whom buy stamps to help spread the cost of Christmas.
Customers’ money will be transferred into a trust account (managed by an independent trustee), which will provide protection for their funds. There is heightened interest in such schemes against the backdrop of a retail environment where a number of high-street names have collapsed, leaving their customers out of pocket.
The Co-operative has been working closely on the new scheme with representatives of the Farepak Victims Committee, set up after the Christmas club collapsed in 2006 and leading to nearly 120,000 people, many from low-income households, losing on average £400 each.
For more information, shoppers can visit www.co-operativefood.co.uk/savingstamps or contact The Co-operative Customer Careline on (freephone) 0800 0686 727