HBOS hit by £50 Compensation Claim

 

£50m compensation claim is the latest to hit HBOS over the fraud saga, which centres on a the period between 2002 and 2007. Back in in February a number of people, were jailed for a total of 47 years over the fraud.

Lloyds, which rescued HBOS in 2009, has set aside £100m to pay “fair and appropriate compensation” for clients’ losses. If sustained, the claim by Noel Edmonds, would absorb half of the pot set aside on its own.

In his letter to António Horta-Osório, Lloyds chief executive, Mr Edmonds argues that his reputation as an entrepreneur “was destroyed by humiliating media coverage that surrounded the collapse of the business”. His claim against Lloyds includes an element for the loss of promotional speaking income, which was running at £1m a year before Unique’s collapse. That, added to the decline in Unique’s value, plus the direct losses attributable to the fraud, led his legal team to estimate the total cost as potentially amounting to more than £50m.

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