Belfast Telegraph

Farepak campaigners are set to push for more compensation from HBOS

By Jamie Grierson

Farepak campaigners could press HBOS for an additional £10m in compensation for customers hit by the collapse of the Christmas hamper business.

Unfairpak will call for another £10m from HBOS, now part of Lloyds Banking Group, the Mail on Sunday said, despite the bank already paying out £10m to date, including £8m last week.

Lloyds made the payment after High Court judge Mr Justice Peter Smith pointed the finger at Farepak's bankers during a hearing in London.

Unfairpak is part of a delegation that will meet business secretary Vince Cable later this week to discuss what the Government could do next. Proceedings to disqualify the former directors of European Home Retail, which owned Farepak, were thrown out but the judge suggested the bank looked to its morals for compensation.

HBOS has said in a statement that it chose to make an ex-gratia payment of £8m "in the light of recent comments from Mr Justice Smith".

It said it emphasised that HBOS acted legally, but said the group had "wider responsibilities" to the community as well as legal and financial obligations.

The bank previously said its staff "acted entirely appropriately" throughout its relationship with European Home Retail, which went into administration.

The court heard that following the collapse, claims by customers and "agents" against Farepak amounted to about £37m.