People 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 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."

The interest incurred is almost 10 times more expensive than the Blackbird Leys Credit Union at the Leys Linx Centre which offers cash loans at 26 per cent annual interest.

Jim Hewitt, of the credit union, said: "The difference in interest is enormous.

"I would like to say to people come to us but at the moment we are overwhelmed by the response to recent publicity following Farepak.

"Our advice would be if things are tight have a quiet Christmas and look forward to a much better one next year free from debt and the interest."

David Troth, of Deer Walk, Greater Leys, received a leaflet through his letter box last week and fears people are being encouraged into debt. He said last night: "They should not be allowed to get away with it year after year."

The leaflets offer vouchers for hundreds of shops ranging from DIY to electrical, toys, fashions and holidays, with repayments from £2.50 a week.

Voucher offers are open to tenants, people with county court judgements and those who are unemployed. The leaflets explain the typical interest is 222.7 per cent per year.

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.

Ms Barker said: "Our home credit is quite a good choice for people who are self-employed or are on low incomes and need to manage their budget carefully.

"The slightly higher cost is not just interest but cost of the agent visiting the customer.

"The customer knows that amount is not going to go up. We have not instructed any of our agents to specifically make offers to Farepak customers because we've got no way of finding out who they are."