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Talks on protection for coupon holders

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The Consumer Council is meeting coupon-issuing companies to work out how to protect customers' interests.

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The council and video rental chain KPS will discuss proposals aimed at safeguarding coupon holders' interests in the event of more company collapses.

Bakery shops issuing cake vouchers also backed the establishment of a protection mechanism yesterday.

A Trade and Industry Bureau spokesman said it would study proposals submitted by the council.

Ideas include depositing the revenue from coupons into a trustee account, allowing companies to receive the money as the products are redeemed.

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KPS Retail Stores' director of legal and business affairs, Christopher Britton, who will meet the council today, said a better idea might be to ask companies to pay a premium to an independent insurer to cover the risk.

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