This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6188867.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| High Court ruling for Farepak £1m | High Court ruling for Farepak £1m |
| (about 5 hours later) | |
| A High Court ruling is set to decide if a select number of Farepak subscribers will be able to share a £1m refund. | A High Court ruling is set to decide if a select number of Farepak subscribers will be able to share a £1m refund. |
| At stake is the legal status of money accrued between the collapse of the savings club in October and the time it went into administration soon after. | At stake is the legal status of money accrued between the collapse of the savings club in October and the time it went into administration soon after. |
| The court may rule the money belongs to customers, but, if so, it appears there would be a delay in any award after the judge highlighted "technical" issues. | |
| The case was adjourned in early afternoon to discuss legal arguments. | |
| Farepak's collapse led 150,000 people to lose a total of up to £50m. | Farepak's collapse led 150,000 people to lose a total of up to £50m. |
| 'Great joy' | 'Great joy' |
| The ruling, to be decided by Mr Justice Mann, focuses on whether local agents held the money in the interim fund "in trust" on the firm's behalf or whether it held the money for the customers. | The ruling, to be decided by Mr Justice Mann, focuses on whether local agents held the money in the interim fund "in trust" on the firm's behalf or whether it held the money for the customers. |
| If it is decided the latter applies, then former Farepak savers should receive that money. | |
| If not, then the money will go into a general fund to be shared between all the company's creditors. | If not, then the money will go into a general fund to be shared between all the company's creditors. |
| Lexa Hilliard, the administrators' counsel, has said the final decision could mean hundreds of people getting more money to spend during the Christmas and New Year period. | |
| The range of money agents could receive ranges from between £17 and £1,500, for distribution to customers. | The range of money agents could receive ranges from between £17 and £1,500, for distribution to customers. |
| For them "it will be a source of great satisfaction and great joy," said the counsel. | For them "it will be a source of great satisfaction and great joy," said the counsel. |
| The Treasury is set to launch a review of Christmas saving clubs and the lack of regulations governing them, following Farepak's collapse. | The Treasury is set to launch a review of Christmas saving clubs and the lack of regulations governing them, following Farepak's collapse. |
| 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. |