01/Sep/2014 - Last News Update: 14:03

Farepak customers to receive half of money owed

Category: Scotland

Published: 10th Jul 2012 11:34:45

Customers and agents of Farepak, the Christmas savings firm, will ultimately receive half of the money they lost when the company collapsed.

Swindon-based Farepak collapsed in 2006, leaving 114,000 people with total losses of £37m.

Now liquidators BDO have confirmed that final payments will be made to those who lost out at the end of August.

Customers have waited for the end of court cases to see a final settlement reached.

The government's Insolvency Service had argued that the high-profile collapse of Farepak had been the fault of nine former directors of the company.

At a recent High Court hearing, the service had to admit that its case did not stand up, and the action was dropped.

However, the judge argued that HBOS bank had taken a "hardball" attitude in dealing with the company and was partially to blame for the collapse.

This led to Lloyds Banking Group, which now owns HBOS, to make an £8m payment to the Farepak compensation fund.

This has allowed the joint liquidators to bring their investigations to an end, and finalise payment levels.

Farepak collapsed leaving no money available to creditors. However, BDO has confirmed that a payment of about 32p in the pound will be made, which includes a share of the £8m from Lloyds Banking Group.

When added to the 17.5p in the pound given by the Farepak Response Fund charity, set up by the government in 2006, customers will have received a total of approximately 50p in the pound, BDO said.

Former customers and agents who have changed their address since they made their original claim should inform the Farepak claims management team of the alteration.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Farepak customers to receive half of money owed [Online] (Updated 10th Jul 2012)
Available at: http://www.ukwirednews.com/news/1439654/Farepak-customers-to-receive-half-of-money-owed [Accessed 1st Sep 2014]

News In Other Categories

  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Body in canal in Pontardawe prompts police inquiry

    The body of a man has been found in a Swansea Valley canal.
  • Electronic nose 'sniffs faeces to detect infection'

    Sniffing faeces with an "electronic nose" can detect strains of bacteria that can cause deadly infections, say UK researchers.
  • WAO: Cardiff council 'is not planning effectively'

    Cardiff council is failing to improve its services because of "fragmented leadership and management", says Wales' public spending watchdog.
  • Binchester Roman Fort development fears allayed

    The owners of a Roman fort near Bishop Auckland, County Durham, have moved to allay fears that it could be developed following it being put up for sale.
  • In Pictures: British Wildlife Photography Awards

    The 2014 British Wildlife Photography Awards have been selected from thousands of entries, with a brooding shot of a greylag goose under a stormy London sky named the overall winner.