Families feeling the pinch this Christmas and those who lost their savings in the collapse of hamper firm Farepak are being warned to stay clear of doorstep money lenders.

Leaflets have been distributed to homes across Greater Leys, Oxford, from a firm called Greenwood Personal Finance offering people credit to buy gift vouchers with repayments incurring up to 222 per cent interest.

Many families from across Oxford and the estate lost hundreds of pounds in Christmas savings when festive hamper firm Farepak called in the administrators in October.

Provident Financial, the parent company for Greenwood Personal Finance, has denied that it is targeting Farepak customers or vulnerable residents.

But Blackbird Leys councillor Stuart Craft said: "I understand the temptation to buy now and pay later, especially when you don't have the money to give the family the Christmas they deserve, but these companies are only interested in parting you and your money.

"Those who fell victim to the Farepak scandal could be at risk.

"I would urge them to stay clear of doorstep money lenders."

David Troth, of Deer Walk, Greater Leys, received a leaflet through his letter box last week and fears people are being encouraged into debt.

Joanne Barker, spokesman for Provident Financial, said the company was not able to provide information on how many customers it has in Oxford.

But she said a recent national customer survey revealed 95 per cent were satisfied with the home credit service.

She added that the company had been offering loans in Britain for the past 126 years.