FAREPAK RECOMMENDATIONS

EMBARGOED UNTIL 1.45PM – 4 DECEMBER 2012

FAREPAK DISQUALIFICATION – RECOMMENDATIONS/ AFFIRMATION OF CURRENT  PRACTICE

 

  INSOLVENCY SERVICE – INVESTIGATION & ENFORCEMENT TEAM
  Recommendations/affirmation of current practice How we will take forward
 

1

 

Improve the sense and understanding of ownership of the investigation   and final affidavit in section 8 disqualification cases

 

 

The Service will review the process by which section 8   disqualification cases are handled to ensure that

a) ownership of the disqualification  proceedings is clearly understood and   assigned

b) the evidence requirements for the disqualification (as   opposed to the section 447 report) are clearly understood and assigned.

c) the    responsibility of each director for the conduct complained of is   clearly understood and evidenced.

2 Increase the focus on any lessening of the public interest   in progressing disqualification proceeding as the case develops and as time   elapses. The Service will introduce a more structured process   whereby decisions at key points (for example receipt of defences, withdrawal   of allegations, decisions to proceed/discontinue etc) are recorded in a   structured way which demonstrates the public interest of that decision. The   time elapsed will be part of that consideration. [1]
3 Strengthening   assurance that witnesses are familiar with their evidence, its relevance and   significance (including all exhibits) and are clear about the process and   what is expected of them, especially where third parties my have prepared or   assisted in preparation of affidavits and where witnesses may be unfamiliar   with giving evidence. a)Any likely issues regarding the  availability of witnesses will be   highlighted prior to proceedings being considered.

b) Witnesses will continue to be appropriately supported   through the process with a new system of confirmation in place

c) Solicitors will continue to ensure that witnesses are   familiar with their affidavits and exhibits and what is expected of them   during the trial with a new system of confirmation in place.

4 Whilst it is not the Secretary   of State’s role to speculate on what actions directors might have taken,   explicit consideration should be given as to how the defendant ought to have   behaved.  In the majority of cases  the answer may be obvious but nevertheless   the exercise may be of value. This may prompt rewording or a recasting of the   affidavit and allegations.

 

This will be added to guidance and considered during the   process.  It is not suggested that this   be added into the affidavit itself.
5 Continuing   with the common practice that  Ministers   and others are informed regularly of the progress of high profile cases On   high profile cases that have clear Ministerial/public/media interest a   regular  ‘for information’  light   touch progress update will be provided to BIS, Ministerial offices and press   office

 

6 Ensure   that the contingent liabilities for cases are  reviewed regularly by the audit committee   and management board in the Service and regularly communicated through   the monthly forecasting process to BIS.

 

The Service will produce a register for cases that have   incurred significant cost or have the likelihood of significant adverse costs


[1] The lessons learned review panel recognised that this case was conducted under S8 CDDA 1986, where there is no statutory time limit to commence proceedings; the vast majority of disqualification cases brought by the Service are under S6 CDDA which requires proceedings to be brought within two years from the date of the company’s failure.

FAREPAK DIVIDEND 35 PENCE IN £ NOW IN POSTAL SYSTEM

Martha H Thompson and Dermot Power of BDO LLP, Kings Wharf, 20-30 Kings Road, Reading, Berkshire, RG1 3EX were appointed Joint Liquidators of Farepak Food & Gifts Limited on 4 October 2007 Farepak Food & Gifts Limited Correspondence Address: Claims Management Team, PO Box 3404, Swindon, SN2 9EQ Registered Office: BDO LLP, Kings Wharf, 20-30 Kings Road, Reading, RG1 3EX Registered Number: 4740401 1 October 2012 Farepak Food & Gifts Limited – In Creditors’ Voluntary Liquidation (“Farepak”)

 

The Joint Liquidators of Farepak have today sent cheques to Farepak’s agents and customers. Below are some answers to questions you might have about the amount you were owed by Farepak or the cheque you have received.

 

What is the cheque that I have received?

 

The cheque is a final payment in relation to your claim in the Liquidation of Farepak.

 

How much have I been paid?

 

You have been paid approximately 35p for every £1 you were owed by Farepak.

 

How is the amount of the cheque made up?

 

The sum of money on the cheque you have been sent is made up of two parts: • A payment, known as a dividend, of approximately 14p in the £ from the Liquidation. • An ex-gratia (voluntary) payment by Lloyds Banking Group of approximately 21p in the £.

 

Why have I not received all of my money back?

 

When Farepak collapsed, there was no money in its bank account to pay back the agents and customers – known as ‘creditors’ – who had been saving money. As a result of the work done by the Liquidators, enough money has been recovered, in addition to the voluntary payment by Lloyds Banking Group, to send you this cheque.

 

Will I get any more money?

 

This payment represents all the money that is available to pay to Farepak’s creditors, which includes agents and customers. You will not receive any further payments.

 

How was my claim worked out?

 

Your claim was worked out from the forms you and your agent previously filled in and returned to the Liquidators, and from looking at the information that was in Farepak’s records at the time Farepak went into Administration.

 

Can an agent or customer provide new details of their claim now?

 

The claims have been finalised so it is not possible to provide new evidence now. If new claims are made now we will not be able to pay them.

 

What has happened during the Liquidation?

 

When Farepak collapsed, there was no money in its bank account to pay to its creditors, which includes agents and customers. As ordered by the Court and approved by Farepak’s creditors, including agents and customers, a Liquidation Committee was set up. This is a group of people who were owed money by Farepak and who represent all those who lost money as a result of the collapse of Farepak, including representatives of the agents and customers. As directed by the Liquidation Committee, we have been working throughout the course of the Administration and Liquidation to recover as much money as possible. The Liquidation Committee asked the Liquidators to do certain work, including taking legal action, to try to get money for the benefit of Farepak’s creditors, including agents and customers. This work can take a long time but is now finished. As a result of the work done by the Liquidators, enough money has been recovered to send you the dividend payment of approximately 14p in the £. In addition the Liquidators have sent out an exgratia (voluntary) payment by Lloyds Banking Group of approximately 21p in the £.

 

How long do I have to bank my cheque?

 

You will need to bank your cheque within 6 months of the date on the cheque.

 

I have changed name so cannot bank the cheque. What should I do?

 

Please send your cheque back and send us evidence of your change of name, for example a copy of a marriage certificate. These should be sent to: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ. We can then arrange for a replacement cheque to be sent to you.

 

A Farepak agent/customer has died. What should I do?

 

In order for a new cheque to be sent to the agent’s or customer’s next of kin, please return the cheque and provide a copy of the death certificate. These should be sent to: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ. We can then arrange for a replacement cheque to be sent to you.

 

I have read about a further 17.5p paid by the Farepak Response Fund in 2006, bringing the total paid to approximately 50p in the £. What is this?

 

Some vouchers and hampers were sent out by a charity called the Farepak Response Fund in 2006. The Joint Liquidators were not involved with this process and have no more information on it so cannot help further.

 

Additional Information By law, the Joint Liquidators are required to set out some additional information about the Liquidation: • The total amount distributed by the Liquidators is approximately £5.5 million. In addition, an £8 million exgratia (voluntary) payment made by Lloyds Banking Group was sent out by the Liquidators. • There are no unsettled claims and no funds have been retained other than to meet the final expenses of the Liquidation. • There will be no further dividend payment available following this first and final dividend payment. • A summary of the Liquidators’ Receipts and Payments can be viewed on the Farepak website (www.farepak.co.uk). More detailed information about the Liquidation can be viewed on the Farepak website (www.farepak.co.uk). If you have any questions about your cheque, please contact the Claims Management Team using the details below: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ claims@farepak.co.uk

APPEAL

Unfairpak have campaigned for truth and justice for Farepak victims for almost 6 long years now.

 

The case against the Directors of European Home Retail and Farepak Food & Gifts Limited collapsed spectacularly earlier on this year and Mr Justice Peter Smith slated the way that HBOS had acted in the whole debacle.

 

There are still questions to be answered regarding the collapse of the Group and Unfairpak believe HBOS hold those answers.

 

Unfairpak were well aware that Park II could have rescued Christmas, not only for 116,429 savers but also for Farepak Food & Gifts Limited itself.  However, HBOS, at its most senior level and having initially called it a “neat solution” then proceeded to ‘sit’ on it for 6 weeks before pulling the plug on the entire Group. Peter Cummings was quoted by Mr Justice Peter Smith as being the “ultimate arbiter”. The moment his decision was made he knowingly allowed extra subscriptions to be received when he also knew those receipts would be exclusively destined for his bank, without warning to the depositors.

 

This is NOT the first time HBOS have acted in this way.  The people involved in this debacle must be exposed.  Farepak savers were known as “Doris”, they are not the only ones to be called that by HBOS.

 

Back in February of this year, our National Campaign Coordinator wrote an article in the Times wherein she stated “The outcry over politicians’ expenses and bankers’ bonuses shows that society is no longer willing to sit back and let the “fat cats” get away with it any more. We are becoming a classless, less deferential society and the Farepak fight back is another example of how the voices of the “little people” will be heard. If any good can come from the debacle, this could be it. This week a loud message has been sent: no one is above the law and, though it may take time, justice will prevail.”  Suzy Hall 17th February 2011.

 

Unfairpak were originally told that it would cost £15,000 to obtain the transcripts from the trial.  The majority of Farepak savers were women on low incomes and simply could not afford this amount. We have since been informed copy transcripts will cost considerably less and probably hundred as opposed to thousands of pounds.

 

Accordingly, we are asking anyone who feels inclined to help us continue the fight for justice, to support us in our quest to obtain these transcripts which may help to further highlight potentially illicit activity at HBOS. We need as many people as possible to donate £1 (or more) to our PayPal www.paypal.com account info@unfairpak.co.uk in order to obtain the transcripts and give us a fighting fund to investigate HBOS’s role further. We might even be able to get legal advice on how to proceed. We will keep a running account of what is received and how it is disbursed, on the Unfairpak site http://www.unfairpak.co.uk/ .

 

Many thanks.

 

What our supporters have to say:-

“What happened with Farepak is absolutely outrageous and I’m not even sure it’s legal. But regardless of legalities, HBOS should pay back every penny to the victims”…Paul Moore, HBOS Whistleblower 17th August 2012

“HBOS’s handling of the Farepak and European Home Retail situation in September and October 2006 confirms that, two years prior to its own narrowly averted collapse, the bank had become congenitally incapable of acting honourably, morally or ethically — especially in view of the fact it continued to take in ‘deposits’ in September and October 2006, in the full knowledge that Farepak and EHR were headed for insolvency.”…Ian Fraser, Financial Journalist 17th August 2012

It is crucial to the future of UK banking that all the ‘baggage’ about HBOS is exposed, dealt with appropriately and that such behaviour is banished from the UK financial system before we become a laughing stock. Of all the HBOS scandals, this may not have been the biggest but it was certainly one of the shoddiest. One wonders if the HBOS bosses enjoyed their Christmas dinners in 2006? Even Scrooge may have found this one a step too far? Positively “ill founded and misconceived.”…Paul Turner 17th August 2012.

LIQUIDATION OF FAREPAK – THE FACTS

Unfairpak wish to clear up in-factual information that is being put out into the World Wide Web.

All Agents of Farepak receive an Annual Report each year it is a shortened version of that which is sent to trade suppliers and former employees of Farepak.  The Agents are asked to show their customers said Reports in order to keep the costs down.  Alternatively, if customers have access to the internet, they can download these reports at www.farepak.co.uk .

If you were an Agent and are still receiving Annual Reports then your claim is registered!  You only need to notify The Claims Management Team if you have changed your name or address.  You need to write to  Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404 , Swindon, SN2 9EQ with details of your new address or new name.  If you have been married send a photocopy of your marriage certificate.  If your are the next of kin of an Agent who has sadly died, please send a photocopy of their death certificate to the Claims Management Team.

If you were a customer of Farepak, please check with your Agent that they submitted your claim in 2006/2007.  If your Agent confirms that they did and you have not changed your name or address since 2006 then you have to do nothing.  If you have changed your name or address since 2006 you need to write to  Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404 , Swindon, SN2 9EQ with details of your old address and new address.  If you have gotten married you need to send a photocopy of your Marriage Certificate.  If sadly, you are next of kin of a customer who has died, then you have to send a photocopy of the Death Certificate to the Claims Management Team.

Unfairpak are fully equipped to deal with all matters relating to Farepak and we can answer all questions in respect of same.  The difference between Unfairpak answering questions and the Claims Management Team is the fact it saves time and money.  The Claims Management Team are inundated, as are Unfairpak.  However, Unfairpak works on a purely voluntary basis and by contacting us you are not adding to the costs of the liquidation.

If people are advising you to write direct or in fact email people at BDO, these people are actually causing you to incur costs in respect of the liquidation.  Again, Unfairpak would stress that we have a direct line to BDO and if we cannot answer your question ourselves, we can have a response within basically an hour to your question.

Regarding the non receipt of Farepak Response Fund vouchers prior to Christmas 2006.  Please DO NOT submit a claim to BDO.  This is false and inaccurate information which is being given out.  The issue of the non receipt of vouchers is being looked into and Unfairpak should be in a position next week to advise in respect of same.  What Unfairpak would like to point out is the fact that it was vouchers that were sent out prior to Christmas 2006 NOT cash.  Accordingly, please think back and ask yourself “did I receive vouchers from my Agent prior to Christmas 2006”.  The vouchers were Love 2 Shop vouchers and were distributed registered delivery by Park Group Plc.

If there is anything we can do to help, please ask.  As we have stated, if we cannot answer your question directly, we can have a response, during normal working hours, within an hour at the latest.

 

Farepak Website Updated 17 July 2012

http://www.farepak.co.uk/

Unfairpak can advise that the cut off date for registering claims, updating names, changes of address etcetera has been extended until 7 August 2012 due to the volume of calls, emails etcetera by customers querying various points.

Please note that a PHOTOCOPY will suffice when you have to provide copy death certificate.

Same applies for a Marriage Certificate, a PHOTOCOPY will suffice.

Cheques will now begin to go out in September instead of August.

Updated 17 July 2012

 

Martha H Thompson and Dermot Power of BDO LLP, Kings Wharf, 20-30 Kings Road, Reading, Berkshire, RG1 3EX were appointed Joint Liquidators of Farepak on 4 October 2007.

This follows the appointment of Martha H Thompson and Shagun Dubey of BDO LLP, Kings Wharf, 20-30 Kings Road, Reading, Berkshire, RG1 3EX as Joint Administrators over the assets and business of Farepak on 13 October 2006.

Extension of Final Deadline to Submit Customer and Agent Claims

Following the announcement that the Joint Liquidators will be making dividend payments to creditors, including customers and agents, a number of people have asked for additional time so that they can make sure they have sent in their claims and have updated their personal details.

The Joint Liquidators can confirm that they will give customers and agents an additional three weeks, up to 7 August 2012, to make sure their claims and details are correct.

Because customers and agents are being allowed this extra time, this will mean that the Joint Liquidators will send out cheques during September.

Customers and agents who need to contact the Claims Management Team to submit a claim or to update their details should do so by 7 August 2012 by writing to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ.

After 7 August 2012, the Joint Liquidators will begin the process of producing cheques and all of the money held by the Liquidators will be paid to creditors, including customers and agents, during September. This will mean that the Joint Liquidators will not be able to accept new claims from customers and agents that are sent in after 7 August 2012.

Joint Liquidators announce dividend payment

The Joint Liquidators of Farepak have announced that they will be making dividend payments to Farepak’s creditors, including customers and agents. In addition, the Joint Liquidators will at the same time distribute the £8million ex-gratia payment to customers and agents made by Lloyds Banking Group. The ex-gratia payment will be issued by the Joint Liquidators at no additional cost. The dividend payment – approved by the Liquidation Committee – marks the end of the liquidation of Farepak for creditors.

The Joint Liquidators have been working throughout the liquidation to recover as much money as possible for creditors as directed by the Liquidation Committee, which was set up by court order to represent all those who lost money as a result of the collapse of Farepak. This work has required the Joint Liquidators to investigate a number of possible claims and engage in legal proceedings with third parties. The Joint Liquidators have now finished their investigations and recovered as much money as possible for creditors and are in a position to pay a dividend.

Farepak collapsed leaving no money to pay a dividend to its creditors. The Joint Liquidators are now able to confirm that a payment will be made to customers and agents of approximately 32p in the £. This sum includes the dividend payment of approximately 13p in the £ secured by the Joint Liquidators and the £8million ex-gratia payment made by Lloyds Banking Group. The Joint Liquidators will aim to make payments to Farepak’s 114,000 creditors during September.

When added to the 17.5p in the £ given to all customers and agents by the Farepak Response Fund charity, set up by the Department for Trade and Industry in 2006, the dividend payment means that customers and agents of Farepak will have received a total of approximately 50p in the £.

Further details on dividend payments

By law, the Joint Liquidators must take certain steps during the time between the announcement of the dividend payment, and when the cheques are sent out to all creditors including customers and agents.

The Joint Liquidators have also agreed to give customers and agents an extra three weeks to allow them to provide information about their claims and to update their personal details.

Based on the time needed to complete the above, the Joint Liquidators will aim to make payments during September.

 

1. How much money will I get? 

The work undertaken by the Joint Liquidators has increased the dividend payable to approximately 13p in the £, compared to nothing when Farepak went into administration. The Joint Liquidators will also distribute the £8m ex-gratia payment to customers and agents made by Lloyds Banking Group at the same time as the dividend payments, This will mean that customers and agents will receive a total payment of approximately 32p in the £.

This will mean that, for example:

– a customer or agent with a claim of £100 will receive approximately £32;

– a customer or agent with a claim of £500 will receive approximately £160; and

– a customer or agent with a claim of £1,000 will receive approximately £320.

The Joint Liquidators will aim to make payments to Farepak’s 114,000 creditors during September.

 

2. Why are payments being made by cheque, and not directly into bank accounts?

 

The Joint Liquidators are making the dividend payments by cheque because it is the best way of ensuring the money reaches the right person in this case.

 

3. Is this the final payment I will receive?

 

The dividend payment is the total and final payment that will be made to creditors. The dividend payment marks the end of the liquidation of Farepak for creditors, including customers and agents.

 

4. Why has the estimated dividend changed?

 

As with all administration and liquidation processes, it is not possible to calculate the exact dividend payment until all monies are recovered, the final number of creditors is known and all work is completed. For this reason, all dividend figures that have been shared by the Joint Liquidators (formerly Joint Administrators) to date have been based on projections and clearly set out as estimates.

 

As directed by the Liquidation Committee, which was set up by court order to represent all those who lost money as a result of the collapse of Farepak, the Joint Liquidators have been working throughout the course of the administration and liquidation to recover as much money as possible for creditors, including customers and agents. This work has required the Joint Liquidators to investigate a number of possible claims and engage in legal proceedings with third parties. The Joint Liquidators have now finished their investigations and are in a position to pay a dividend.

 

The work undertaken by the Joint Liquidators has increased the dividend payable to approximately 13p in the £, compared to nothing when Farepak went into administration. The Joint Liquidators will also distribute the £8million ex-gratia payment to customers and agents made by Lloyds Banking Group at the same time as the dividend payment. This means that customers and agents will receive a total payment of approximately 32p in the £.

 

Changes of personal details

 

Changes of name

 

Creditors who have changed their name since submitting their original claim but not notified the Claims Management Team should register their change of name by sending details of their name, their agent’s number, the amount of their claim, a copy of their marriage certificate or copies of other documentation and their signature to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ by 7 August. The Claims Management Team is not able to deal with changes of name over the telephone or via email for security reasons. The Joint Liquidators can confirm that customers and agents do not need to send in original certificates.

 

 

Changes of address

 

Creditors who have changed their address since submitting their original claim but not notified the Claims Management Team should register their change of address by sending details of their name, their agent’s number, the amount of their claim, their old address, their new address and their signature to Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404, Swindon, SN2 9EQ by 7 August. The Claims Management Team is not able to deal with changes of address over the telephone or via email for security reasons.

 

Notification of customer / agent death

 

We are not able to deal with notifications of death over the telephone for security reasons. If you wish to notify us of the death of an agent or customer, please send a copy of the death certificate and the new address for correspondence together with the agent’s number (if known), to: Claims Management Team, Farepak Food & Gifts Limited – In Liquidation, PO Box 3404 , Swindon, SN2 9EQ. The Joint Liquidators can confirm that customers and agents do not need to send in original certificates.

 

Report to Creditors

Please click here for information about the 2011 report to creditors

Trust Monies

Please click here for information about the Trust monies ruling on 31 July 2009.

Media Reporting Farepak “victims” to get 50% back – FACTS

There are many media reports circulating with headlines such as “Farepak customers will get half their money back”; “Farepak victims to receive 50 p for every £ saved”; “Farepak customers to receive half of money owed” etcetera.

Unfairpak would like to state that we have been contacted by customers in excess of 400 by various means.  They have been quite clear on what is being reported.  They know they are to receive a further 32 pence in the £.  Some of these customers have acknowledged they received the 17.5 pence in the £ prior to Christmas 2006 and some are stating they did not receive same. 

What Unfairpak can confirm is the fact that the liquidators sent a “mirrored image” of the Farepak database to the Farepak Response Fund.  The vouchers were then sent out to Agents on the database to distribute to their customers.  These vouchers were sent registered delivery by Park Group Plc. 

We [liquidators and Unfairpak] are looking into possible reasons why some people may have not received same and hope to have an answer early next week which we will report on.

Unfairpak concede that some of the headlines are “misleading” in the media but as aforesaid, over 400 customers who have contacted us ARE clear it is 32 pence they are to receive.

When our National Campaign Co-ordinator spoke to the Press Association, this is what she said:-

Suzy Hall, national co-ordinator for campaign group Unfairpak, hailed today’s announcement as a victory.

She said: “To think we started in 2006 with zero. To finally be able to pay out an extra 32p is a fantastic result. Never in my wildest imagination did I think we would get back 50p in the pound. Unfairpak believe we have won.”

Suzy has NEVER stated to any newspaper that customers are to RECEIVE 50 pence back in the £.  She has clearly given a breakdown of the 50 pence in the £ and every newspaper that we have seen have reported the 17.5 pence in the £ will bring the total payout to 50 pence in the £.  Being pedantic, the figure is actually 49.5 pence in £ although we have obviously not used half pennies for years now.

 

Unfairpak’s Response to £8 million from Lloyds

It would have cost roughly £3 to £5 million for HBOS to ‘save’ Farepak but HBOS wanted their money back and they got it, leaving 116,439 customers with claims totalling £37 million out of pocket and facing a miserable Christmas in 2006.

Unfairpak held a demonstration outside HBOS’s HQ in Edinburgh on 11 December 2006 with a large media presence.  We had our fantastic laminated ‘UNFAIRPAK’, banner and Colin Fox, former MSP, came up with the wonderful slogan ‘Hand Back Our Savings’!

We also had a petition with thousands of signatures and many emails from MSP’s stating that they would not be attending the Champagne Reception that HBOS were holding on that very cold December night.

Unfairpak knew then that HBOS had our savings and we wanted them back.  The bank, on the other hand, decided, very kindly, to give us Shane O’Riordain with an ‘open’ letter to Unfairpak which our National Campaign Co-ordinator read to the demonstrators.

Shane very quickly became known and called as ‘Shame on Shane’ and it was truly ‘shame on Shane’ as he was the one sent out to spin HBOS’s poor, pathetic attempt at discrediting Unfairpak and in fact Suzy herself.  HBOS were “very disappointed” that Suzy stated that the £2 million donation, being the single largest donation, to the Farepak Response Fund (if we heard that once, we heard it one hundred times from Shame on Shane) “disgusted her”.  HBOS went onto state that they “broke the golden rule of banking” as banks hardly ever made a charitable donation to companies that had collapsed and they had provided finance to same.  However, that is exactly what it was, a charitable, guilty donation and now Lloyds wish to ‘top it up’ by £8 million to the £10 million suggested in court by Mr Justice Peter Smith.

Lloyds are now ‘responsible’ for HBOS’s greed due to the fact that it is a wholly owned subsidiary of the Lloyds Banking Group.  However, don’t feel sorry for Lloyds, as they were later, along with other banks, to be bailed out by the taxpayer and owes said taxpayer around £20 billion – YES £20 BILLION!

Unfairpak firmly believe that Lloyds should actually be paying £10,251,000.  We reach this figure as this is the amount that was swept up from Farepak to HBOS from suspension of EHR’s shares on 23 August 2006 until the Group’s collapse.  If you look at Woolworths as a comparison, when they suspended their shares they put the firm into administration, EHR, on the other hand, continued to trade.  This is the date that Unfairpak feel we can say categorically that EHR should have been put into administration but was not.

Now some people will read this and think “£10,251,000, are you crazy……”?  What we have to remember is that HBOS did NOT act illegally.  They did however act wholly immorally especially with the Park II rescue plan, which, as Unfairpak stated at the beginning of this post, would have cost HBOS £3 to £5 million to ‘save’ Farepak.  HBOS ‘sat on’ Park II for 6 weeks, initially calling it a “neat solution…..” only later to pull the plug completely on the Group.

Suzy Hall along with Yvonne Fovargue and Ian McCartney are meeting with Mr Vince Cable on Thursday 12 July 2012 to discuss “the case”.  Mr Cable has stated today that “My department and Lloyds will work to make sure this money gets to the victims as quickly as possible.”  There are several ways this can be done, the simplest being through BDO.  Now some people are going to get a little tetchy that Unfairpak should even dare mention BDO and money in the same sentence.  What people have to realise is that they have no idea what goes on behind the scenes of an administration/liquidation and Unfairpak appreciate that must be extremely frustrating.  However, BDO are the best equipped to deal with distributing the funds.   BDO actually waived their fee in respect of dealing with the Farepak Response Fund.  Unfairpak are NOT suggesting that BDO would waive a fee dealing with Lloyds but we are pointing out that they have done so before.

To bring this blog to a close, Unfairpak would urge Lloyds to up their offer to £10,251,000 and lastly, we expect and shall demand that ALL senior management of HBOS from 2006 involved with Farepak are brought before the Treasury Select Committee to answer questions on their actions.  They have called our savings “Doris” that comment may prove to be “Deadly” especially when they are fighting a group that completely deserved Scottish Herald Politician Campaign of the Year Award in 2007.