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| Version 1 | Version 2 |
|---|---|
| HBOS to give £2m to Farepak fund | HBOS to give £2m to Farepak fund |
| (about 2 hours later) | |
| Banking group HBOS is to donate £2m to Farepak customers after the Christmas hamper and voucher firm collapsed. | Banking group HBOS is to donate £2m to Farepak customers after the Christmas hamper and voucher firm collapsed. |
| Halifax, which formed HBOS when it merged with the Bank of Scotland, has been criticised for its role as banker to Farepak's parent company. | Halifax, which formed HBOS when it merged with the Bank of Scotland, has been criticised for its role as banker to Farepak's parent company. |
| Critics say Farepak was allowed to continue trading despite its problems. | Critics say Farepak was allowed to continue trading despite its problems. |
| Swindon-based Farepak ran a savings scheme for about 150,000 people, but collapsed in October without offering its customers compensation. | Swindon-based Farepak ran a savings scheme for about 150,000 people, but collapsed in October without offering its customers compensation. |
| HBOS provided the overdraft facility to Farepak's owner, European Home Retail (EHR). It was an HBOS decision not to extend EHR's overdraft that eventually led to administrators being called in. | HBOS provided the overdraft facility to Farepak's owner, European Home Retail (EHR). It was an HBOS decision not to extend EHR's overdraft that eventually led to administrators being called in. |
| "As banker to EHR, the company which owned Farepak, HBOS at all times sought to help its customer through difficult financial circumstances," the banking group said. | "As banker to EHR, the company which owned Farepak, HBOS at all times sought to help its customer through difficult financial circumstances," the banking group said. |
| "It is right that the group helps Farepak customers as well at this difficult time." | "It is right that the group helps Farepak customers as well at this difficult time." |
| Financial difficulties | Financial difficulties |
| Suzy Hall, who has been leading a campaign for compensation, told the BBC that she was "absolutely disgusted" with the sum that HBOS had offered to pay. | Suzy Hall, who has been leading a campaign for compensation, told the BBC that she was "absolutely disgusted" with the sum that HBOS had offered to pay. |
| "EHR announced financial difficulty in June. Why did they not pull the plug in June?" she asked. | "EHR announced financial difficulty in June. Why did they not pull the plug in June?" she asked. |
| "People who have saved hard for Christmas, have literally had Christmas 2006 ripped from under them," she said. | "People who have saved hard for Christmas, have literally had Christmas 2006 ripped from under them," she said. |
| Farepak customers are estimated to have lost about £400 each on average, though some are thought to have lost closer to £2,000. | Farepak customers are estimated to have lost about £400 each on average, though some are thought to have lost closer to £2,000. |
| On Tuesday, Ian McCartney, the Minister for Consumer Affairs, described the situation as a "national emergency" and announced that the Farepak Response Fund was being established with help from York-based charity Family Fund. | On Tuesday, Ian McCartney, the Minister for Consumer Affairs, described the situation as a "national emergency" and announced that the Farepak Response Fund was being established with help from York-based charity Family Fund. |
| Supermarket giant Tesco has pledged £250,000 to the fund and called on other firms to help. Marks & Spencer also offered £250,000, and Morrisons is donating £150,000. | |
| In another effort to help, High Street firms Sainsbury's and John Lewis have agreed that Farepak customers can get 25% of the value of their savings in Sainsbury's vouchers. |