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Found 5 results

  1. Well tomorrow is the last day of August, Cheques supposed to arrive at the end of August, I am not holding my breath though
  2. Judge criticises Farepak's bank HBOS for continuing to collect deposits after it knew Christmas savings club was in trouble. Savers who lost money when the hamper firm Farepak collapsed are to receive compensation totalling £8m from Lloyds Banking Group. More than 116,000 families lost money when the firm – which offered consumers the opportunity to spread the cost of Christmas by making regular payments which were converted into vouchers or hampers – went into administration in 2006, wiping out almost £40m in the process Farepak's bank HBOS, which is now part of the Lloyds Banking group, has been heavily criticised for its handling of the savers' money, after it emerged that it had refused a request to ringfence the cash and continued to take deposits when it knew Farepak was in serious trouble. Customers had saved an average of £400 each, but eventually received just 15p in the £1 as compensation. The new fund is the equivalent of around £66 for each saver, although it is not yet clear how it will be distributed. The announcement of an ex-gratia payment of £8m follows the collapse in June of a high court case against Farepak's directors taken by the Insolvency Service. The judge who heard the case, Mr Justice Peter Smith, was critical of HBOS, saying it had benefited to the tune of £10m in the final months of the company's existence. "The bank had, as I have said, almost a pride in their strong attitude, but they went beyond that, of course, because they in effect forced the directors to carry on in September/October collecting deposits … at a time when they believed [the bank would go bust]," he added. Following the case the business secretary, Vince Cable, wrote to the bank asking for its reaction to the judge's statement and to "understand what the next steps might be, especially when it comes to the matter of increasing the compensation fund". He also wrote to the City regulator, the Financial Services Authority. in the months after Farepak's demise, HBOS made a £2m payment into the compensation fund; the new payment will mean it has reimbursed the £10m referred to by the judge. Lloyds TSB said it was also meeting its own legal fees for the failed court case, rather than reclaiming around £1m to cover them from the liquidators. Lloyds TSB is working with the Department for Business to decide how the compensation will be delivered to those who out. It is not known yet if the money will be split equally between Farepak's customers, or based on how much they had saved. A statement from Lloyds Banking Group said: "While HBOS acted legally in its dealing with the company, as the judge himself acknowledged, we are mindful that, in acquiring HBOS in 2009, the group took on not only its legal and financial obligations, but also wider responsibilities. "We have a crucial role to play in supporting business and the communities in which we operate. In making our decision we have looked carefully at the very specific circumstances surrounding the failure of Farepak and the economic and social impact resulting from it." However, Deborah Harvey, co-founder of the Farepak Victims Committee was not impressed at the offer. "This may sound ungrateful, but if you take into account the fact that £38.2m was taken by HBOS to pay off European Home Retail [Farepak's holding company] including Farepak's overdraught back in 2006, making an ex-gratia payment of £8m is neither here or there." More: http://www.guardian.co.uk/money/2012/jul/06/farepak-victims-get-compensation
  3. HBOS should repay millions of pounds to depositors in the failed Christmas saving company Farepak, after being found to have played “hardball” in the months leading up to its collapse. A High Court judge warned that the bank, now part of Lloyds Banking Group, risked being seen to have acted “unacceptably” by forcing directors of Farepak to take £10m from customers in a matter of weeks, despite knowing that the company was heading for insolvency. While fully exonerating directors of Farepak, Mr Justice Smith pointed the finger of blame at HBOS for precipitating the collapse of the company with overall losses of up to £35m for 120,000 depositors. Justice Smith said: “I would suggest that HBOS [...] seriously consider whether or not they ought to make a further substantial contribution to the compensation fund. It seems to me that what happened here, whilst apparently legally acceptable, might not be regarded in the public’s eyes as being acceptable.” The judge was speaking after the case brought by the Secretary of State for Business, Vince Cable, to have seven Farepak directors banned collapsed. Mr Cable’s department was roundly criticised for errors in preparing the case. The prosecution, led by the Insolvency Service, had relied on witness statements which were unfairly “slanted against the defendants”, said the judge, listing statements from City figures such as Oliver Hemsley, chief executive of broker Numis and David Farrow, then at ABN Amro, all of which were tainted in some way. Justice Smith said he did not believe the witnesses were dishonest but they had not seen crucial pieces of evidence. The seven former directors of Farepak, including Sir Clive Thompson, former president of the CBI, are now expected to pursue the Department for Business for millions of pounds in costs. Link; http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9347400/HBOS-took-Farepak-cash-in-knowledge-company-was-heading-for-the-brink.html
  4. The losses of £37million incurred by the 116,000 people who were left high and dry when Farepak collapsed in 2006 may look trivial in the greater scheme of things. But when one considers that among this group – disparaged by their bankers as Doris’ – are some of the least well-off in the country, who scraped and saved for a wonderful family Christmas, it is hard not to feel the most enormous sympathy. What is really disturbing about this sorry tale is the role played by Halifax Bank of Scotland (HBOS), the rotten bank that was saved from the knackers’ yard by Lloyds TSB and then the Government in 2008-09. Read more: http://www.dailymail.co.uk/money/news/article-2162891/ALEX-BRUMMER-Banking-morals-hits-Farepak-victims.html#ixzz1yfpMsK36
  5. Dear All Just to let you know that the trial of the 7 remaining directors (2 directors took voluntary disqualification) begins this coming Monday 21 May 2012. It is at the High Court, London and is set down for 6 weeks. We have updated Unfairpak to include live Twitter feeds, a blog which we will update each day to sum up what has happened in Court and contact details if you need any help. We also still have the Forum running and can advise you and help you with any aspects of the Liquidation of Farepak. You can also follow us on Twitter @unfairpak Hopefully there will be an end to this debacle soon as it is now 5 1/2 long years since Farepak went into administration. If we can do anything to help anyone affected by Farepak or wanting to know more about the case against directors then please get in touch. Kind Regards from all the team at Unfairpak P.S. I hope we are in the right place to post! I cannot post the link to Unfairpak as I have to have more than 10 posts to do so.
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