A MOTHER and daughter - who lost hundreds of pounds in the collapse of a mail order gift company - have slammed credit companies offering high interest rates.

Mum-of-two Joanne Jones and her mother Tina Tapp, both from Wellington, sent off cash throughout the year to Farepak Food and Gifts Ltd to avoid getting into debt come Christmas.

But the collapse of the company left Joanne £716 out of pocket and Tina £620 lighter - money meant for the children's presents.

Since the demise of Farepak, Joanne and Tina claims that credit companies are targeting people now facing a bleak future.

Last week, the Gazette reported that a Moorvale, a local community bank run by volunteers, was offering loans to people who had lost money with Farepak, with interest rates of 25.36% APR and 12.68% APR.

Joanne told the Gazette: "I am on a low income, I have two children and I struggle to get food throughout the year.

"I have been in trouble with credit companies in the past and taken loans out to pay them off. I paid money into Farepak so I wouldn't get in that situation again.

"When you see companies offering loans with interest rates of 25.36%, it is just appalling."

And mum Tina said: "Once you have signed for it, you can't get out of it. We all saved this money with Farepak so we wouldn't get into debt. We have to work hard for our money and the credit companies seem to have no idea of how the other half lives. Trying to pay back these interest rates is just ludicrous."

Bob Andrews, loans committee chairman for Moorvale, told the Gazette: "We have been in contact with these people and, although we can't help them with their loss from Farepak, we can offer them possible help with a credit union loan.

"Our normal rules are that people have to save with us for a few weeks but this is a special fund for those people who have lost money."

Mr Andrews said they were trying help low earners who often took out doorstop loans and got themselves into serious debt with interest rates over 100% APR.