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Farepak victims plan bank protest | Farepak victims plan bank protest |
(about 12 hours later) | |
Farepak customers are set to protest outside Halifax Bank of Scotland's offices later, over what they see as its role in the savings club's demise. | Farepak customers are set to protest outside Halifax Bank of Scotland's offices later, over what they see as its role in the savings club's demise. |
Victims of Farepak's collapse, which led 150,000 people to lose up to £50m, are expected to protest in Edinburgh as the bank holds a reception. | |
HBOS was criticised for acting as banker to Farepak's parent firm while its troubled subsdiary stayed trading, | |
HBOS said it was in no way responsible for Farepak's collapse. | |
Donation | |
The demonstration is being led by Suzy Hall, who lost £1,000 following Farepak's collapse. | |
Ms Hall said she expected 200 people to attend the event, set to be held outside the bank's Edinburgh headquarters. | |
Ms Hall is wrong in claiming HBOS was somehow responsible for what happened at Farepak HB0S statement | |
HBOS provided the overdraft facility to European Home Retail - Farepak's owner - and its decision not to extend this eventually led to administrators being called in. | |
A Response Fund launched to help Farepak customers has raised £6.4m in contributions from the public and companies. | |
HBOS gave £2m to the fund but some critics have said the amount was small given its role in the collapse. | HBOS gave £2m to the fund but some critics have said the amount was small given its role in the collapse. |
Right to protest | |
But HBOS said it was not responsible for how Farepak was run as a business and that claims it pocketed savings belonging to Farepak customers were "completely untrue". | |
"Banks provide loan facilities, they do not own or run companies," it said. | |
"Ms Hall is, therefore, wrong in claiming HBOS was somewhere responsible for what happened at Farepak." | |
HBOS said it defended the right to peaceful protest but added that its right to go about its business must also be upheld. | |
In the wake of Farepak's collapse, the Treasury is set to launch a review of how Christmas saving clubs - which tend to be highly unregulated - work. | |
On average Farepak customers are estimated to have lost about £400 each, but some are thought to have lost nearer £2,000. | On average Farepak customers are estimated to have lost about £400 each, but some are thought to have lost nearer £2,000. |