Victims hit out at compensation panel for HBOS scandal

The Foskett Panel was formed after Lloyds' original response to the scandal was deemed 'neither fair nor reasonable' by a former judge

A panel reviewing a botched compensation scheme for victims of Britain’s biggest banking scandal is in danger of becoming “another face-saving attempt” by Lloyds Bank, a lawyer for victims has claimed.

The Foskett Panel was formed by Lloyds after Sir Ross Cranston, a former High Court judge, found the bank’s original response to the £245m scandal at the Reading branch of Halifax-Bank of Scotland was “neither fair nor reasonable”.

Victims and campaigners claim the panel, led by another former judge, Sir David Foskett, is narrowing the scope of the fresh review.

In a letter to Sir David last week, barrister David McIlroy said the panel seemed to be excluding victims from receiving compensation if Quayside Corporate Services was not involved in their case.

He claimed victims who appeared to be excluded from getting payouts from the panel were being asked to enter the review anyway and to waive their right to take future legal action.

Paul Pascoe, one of the customers affected, said: “I feel like Snow White being offered the shiny red apple.”

Mr McIlroy said the panel risked being seen as “another face-saving attempt” by Lloyds.

A Foskett Panel spokesman strenuously denied that it had restricted the review process or was interpreting Sir Ross’s recommendations narrowly. He said customers would not be ineligible for compensation even where QCS was not directly involved in their case.

A Lloyds spokesman said it intended to provide “fair and generous compensation”. The methodology and scope for the fresh review was determined by Sir Ross and the Foskett Panel after consulting stakeholders, he added.