Farepak customers to get half of lost cash back in failed savings club

Former Farepak customers will be paid back around half the money they lost in the collapse of the Christmas hamper business.

Liquidators BDO said they will make dividend payments to Farepak's creditors, including customers and agents, at the end of August.

Around 25,000 Scots lost their money when the company went out of business in October 2006.

They confirmed that a payment of about 32p in the Pound will be made, including the £8m which Lloyds Banking Group announced it was making available to former Farepak customers last week.

When added to the 17.5p in the pound given by the Farepak Response Fund charity, set up by the UK Government in 2006, customers will have received a total of approximately 50p in the pound, BDO said.

The liquidators said they will aim to make dividend payments to Farepak's 114,000 creditors at the end of August, which will for them mark the end of the liquidation of Farepak.

The High Court in London previously heard that, following the firm's downfall six years ago, claims by customers and agents against Farepak amounted to about £37m.

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