A constituent from Neenton (between Bridgnorth and Ludlow) managed to recover everything she had paid into Farepak because her payments had been made by Visa debit card.
Even if only a small sum was paid to Farepak on a credit card, and the total paid was over £100, then protection is provided for the full amount under section 75 of the Consumer Credit Act 1974. If paid on a Visa debit card, then a 'chargeback' can secure the cash refund.
According to banks, HBOS has so far paid out £1.2m to its credit card customers. Lloyds TSB has paid out about £300,000 and Barclaycard more than £100,000.
Mr Dunne said: "I sympathise deeply with those who have lost their Christmas savings through failure of this scheme. Many are from vulnerable groups such as the elderly and those on low incomes. They tried to do the right thing by saving for Christmas, but now face a bleak holiday period ahead.
This will not help all Farepak customers and agents, but for some there could be real hope of a better Christmas than they had feared. I urge anyone who paid by either credit or debit card to contact their bank or card issuer immediately. It may be you are entitled to a full refund."
