Customers of Christmas savings club Farepak will receive half the money they invested in the firm before it collapsed back.

Dividends of about 32p in the pound will be made to creditors, including customers and agents.  Those funds will be added to the 17.5p in the pound which the Government will pay out through the Farepak Response Fund charity.

The payout includes £8m from Lloyds Banking Group. The bank now owns HBOS, which was widely criticised for its role in Farepak’s collapse in 2006.

The Christmas hamper firm has 114,000 creditors.

Topics