THE collapse of Christmas savings firm Farepak has highlighted a serious lack of protection for consumers, an influential group of MPs warned today.
The Treasury Select Committee urged early action from the Government to make sure similar situations did not happen again.
About 150,000 Farepak customers in the UK - many of them on low incomes - each lost an average of £400 when the company went into administration last month.
The Government has faced criticism that regulatory procedures were not strong enough to defend the interests of consumers.
Launching a report on financial exclusion by the select committee today, chairman John McFall said: "It is vital that people are given confidence that their savings will be protected.
"The Farepak case has highlighted a serious lack of consumer protection in this area. I want to see early action from the Government, the OFT (Office of Fair Trading) and the FSA (Financial Services Authority) to consider how appropriate safeguards can be introduced."