Member Article

Former Farepak customers to receive 50% refund

Investors in the collapsed Christmas savings from firm Farepak are to receive half their money back, six years after the business folded.

In 2006 114,000 people were left with total losses of £37 milling after the company collapsed.

Customers and agents are now set to receive 32p to every pound invested, including a payment of £8 million from Lloyds Banking Group.

Lloyds agreed to pay following allegations in court that its subsidiary HBPS had played “hardball” with Farepak, and was in part responsible for the collapse of the company.

A further 17.5p will come from the Farepak Response Fund Charity. This was set up by the Department for Trade and Industry in 2006.

This comes after the collapse of the case brought by the government’s Insolvency Service against nine Farepak directors, which meant that liquidators were able to close the investigation.

Creditors are now set to be paid in August.

This was posted in Bdaily's Members' News section by Ruth Mitchell .