Farepak compensation boosted by extra £8m from Lloyds
Lloyds Banking Group has donated an extra £8m to the Farepak compensation fund.
The move comes in response to demands from a High Court judge last month who partially blamed the bank's "hardball" attitude for the collapse of the Christmas savings firm in 2006.
The extra money will go to 116,000 who lost £37m between them.
Lloyds said it was making the payments to acknowledge its "wider responsibilities".
"We are now working to ensure that this money goes directly to those customers," the bank said.
"While HBOS acted legally in its dealing with the company, as the judge himself acknowledged, we are mindful that, in acquiring HBOS in 2009, the group took on not only its legal and financial obligations, but also wider responsibilities."
The business secretary Vince Cable, who failed in his attempt last month to prosecute the Farepak directors, welcomed the bank's donation.
"The result of the legal proceedings case against the former directors was disappointing, but this increased compensation will go some way in helping those who were left considerably out of pocket by Farepak's collapse," Mr Cable said.
"I will be meeting a group of Farepak's creditors and MPs next week to discuss the case," he added.