To think park vouchers etc are a very dodgy way of saving for Christmas?

[Whoknowswhocares]

A few people have mentioned on here they plan to save for next year with one of these type of companies.

I think this is highly risky. Unlike savings in a bank, there is no safety net in place and if the company go bust, you will lose all your money. It happened to what was the biggest firm in the market only about 3-4 years ago. Most people who use these schemes are finding things tough already and cannot afford to lose their money. Please, please save your money in a bank, or even a sealed tin to break open next year

Unless iabu and the rules have changed. So am I?

5% of Park's sales are hampers. The majority of sales are vouchers.

If you miss one week of say 40 weeks (You're saving for a £400 booklet) then you get £390 instead. Or if you have a good agent like me I let you pay when you like.

"Cash in Christmas savings schemes still isn't safe if the club goes bust, despite a trade association outlining more protection.

The Christmas Prepayment Association (CPA) now insists customers' payments must be placed with an institution authorised by the Financial Services Authority.

This, in turn, means the money will then be protected by the Financial Services Compensation Scheme (FSCS).

But this move would not have saved cash in the failed Farepak and would not protect money in any similar scheme if it was to hit trouble."

www.moneysavingexpert.com/news/banking/2012/07/christmas-club-savers-cash-to-be-better-protected

custardo just got regulated yikes are you ok?

How do they make money? not a charity i take it?

Should have said Park sales are 5% goods, 5% hampers the rest vouchers.

I don't think it's a valid point in any way, shape or form.

You get the vouchers you pay for BTW so if you miss a payment it is simply deducted from the total amount saved.

I said earlier in the thread that hampers are a rip off. Watchdog did a story about hampers a few years ago where they went and bought everything (or nearest equivalent) and the price difference was astonishing. Over a £100 if I recall. That was 5-6 years ago. Probably worse now.

Also the gifts they sell are a rip off. £45 for a Coleen Rooney stink set last year.

I have a sealed tin which i open on the 1st of Dec every year. This year I had just under £500 in it

I also said the hampers are a rip off.

custardo I think they will bulk buy 'vouchers' from high street stores and receive a discount from those stores then seek them at face value to us.

They in effect act as an agent for the consortium of shops that take part in the scheme by supplying them with sales if you like by selling their communal voucher.

It makes sense I my head.

Praise the. Self co trol of tinker, se first choc takeaway craving I got that would be cracked opens, I knows what I have to do for me n mine nthats all that matter at the end if the -scheme- day.

V mucho amber

As I said, MSN were challenged over this article. What they were asked to change was "Cash in Christmas saving schemes....." to "Cash in Christmas saving schemes outwith the remit of the Christmas Prepayment Assocation still ........" and they refused albeit they knew and still know today that their article is ambiguous.

Since the introduction of the CPA in 2007 when consumers' monies had to be placed in trust accounts savers with members of the CPA have been safe. Working with the FSCS was simply to improve security further. The more you can secure funds, the better it is for the consumer and obviously the business. Both Park and Variety founded the CPA with government and the Insolvency Service in BIS. There is real care there for security of consumers' monies whereas the likes of supermarkets, who make immense profits, will not regulate at all.

Now who's the naughty people now?

Park own Love 2 Shop vouchers which they sell to corporate customers also.

Are you ok, Detached? You do keep going on about that when the point had been discussed more than once way earlier in the thread.

I can only make comments based on the individuals that I know personally who use such schemes. And the people that I know that use them are, by their own admission, not great with money and wouldnt have the self-discipline to save regularly themselves and not touch it. Those people are happy to admit that fact and tell me that's why they find them useful but there are plenty of people on here getting very touchy about the merest hint of a suggestion that people who ARE "good" with money do not have any need for the schemes.

supermarkets are indeed fuckers

I have often wondered that CUstardo, but tbh as long as I pay £500 in and £500 out (and actually a bit more thanks to commission) then I dont care how they make their money! They obviously make a fortune on hampers and game consoles though.

No I have lost all control, all of it, gone gone gone.

They won't actually make too much Bogey because sales of hampers and goods are falling all the time. I think they will end up purely voucher based in the near future.

Although there are still people that like to have their hampers delivered at Christmas but as I said previously, hampers only account for 5% of sales.

The company my sil works for rewards the staff with Love2shop vouchers. She gave them to me as she was too embarrassed to spend them just in case the cashier in Debenhams thought she was poor. True story...

Zsas, yeah so when the retailer redeems the voucher it will be for a % less than face value, the different is what Park keep as their profit.

I have used Park in the past.

I started saving in my local Credit Union (although i have credit cards and two bank accounts). They now do a Christmas Savings scheme, it is calculated seperately from the regular savings and is insured.

Where i live, you couldn't risk having any money in the house.

The only reason i pointed out that i had CC and bank accounts is because i don't think it is a matter of being short of money to use any savings scheme.

It is good planning.

I would venture to say that someone who is saving in advance for Xmas is better with money than someone who spends on their credit card.