History Daily

1261: Saturday Matinee: Cautionary Tales

Dec 6, 2025
In this episode, economist and storyteller Tim Harford reveals the cautionary tale of Farepak, a Christmas savings club that collapsed, leaving many families in despair. He explains how social pressures led vulnerable customers to use the service, and details the unfortunate bankruptcy and its impact. The conversation also touches on holiday gift-giving problems, emphasizing that many gifts are worth less than their cost. Tim offers insights into better spending habits, urging a shift towards meaningful gifts and open communication about expectations.
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ANECDOTE

Agent Loses Christmas Savings

  • Susie Hall collected weekly savings as a Fairpack agent to fund Christmas for her family and customers.
  • On Friday the 13th, 2006, Fairpack collapsed and she learned no hampers, vouchers, or goods would be sent.
ANECDOTE

Family Savings Vanish Before Christmas

  • Lee and Margaret Trimble saved with Fairpack after losing a child, hoping to give their younger children a special Christmas.
  • When Fairpack folded most of their Christmas money vanished, threatening their plans.
INSIGHT

Savings Clubs Lack Bank Protections

  • Savings clubs often lock money up without interest or regulatory protections that banks provide.
  • Legally payments to Fairpack were prepayments for goods, so customers lacked deposit safeguards.
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