DONATIONS from individuals to the emergency fund set up following the collapse of the hamper firm Farepak has topped £78,000.

Staff at the York-based Family Fund, at Monks Cross, launched the Farepak Response Fund after the Swindon-based firm failed last month, with savers losing an estimated £40 million.

Victims could receive as little as 4p for every £1 they paid into the scheme, it emerged.

Administrators BDO Stoy Hayward also confirmed customers are not expected to get their hands on the cash until after the festive season.

The Response Fund tally includes anonymous donations ranging between £5,000 and £10,000, as well as telephone donations through the Charities Aid Foundation, and cheques through the post.

The fund was set up to help victims, many of whom are low-income families. An estimated 150,000 customers lost an average of £400, although some lost closer to £2,000.

Contributions from retailers are up to £4.3 million. Vouchers for major high street retailers and supermarkets will be paid out by December 18. It has not yet been announced how these will be shared out.

Money experts are cautioning people against relying on any unregulated mail-order catalogue, community or work-based savings organisation.

They are also urging anyone tempted to take out a doorstep loan rather than face a bleak Christmas to turn to more reliable organisations such as York Credit Union (YCU).

The YCU could organise a loan to tide people over. Unlike other lenders, it does not charge set-up costs, there are no early redemption fees and it does not insist on payment protection insurances.

YCU manager Mike Horncastle said it charged a flat interest rate at 18 per cent (19.6 per cent APR) and provided free loan protection insurance to all eligible borrowers.

York Citizens Advice Bureau (CAB), which has been contacted by a number of people affected, said this week that debt had overtaken benefits as the top concern among those who contact the service.

Michael Beckett, service manager at York and District CAB, said: "We strongly recommend the credit union, having seen first hand on numerous occasions the effects of doorstep lenders, both legitimate and illegal, and bailiffs operating within the law and those who, on occasion, have bent the law."

The Family Fund usually provides support to families with severely disabled children living at home, many of whom have been in touch with the fund.

To donate to the Response Fund by credit or debit card, phone 0845 2601096 or log on to www.farepakresponsefund.org.uk The closing date for donations is Friday. Anyone affected by the collapse of Farepak should register with the administrator, by phoning 0870 0669826.

For debt advice, phone York and District CAB on 01904 623648.