Photo via Daily Record
TV star Noel Edmonds offered to accept the compensation amounting to £10m from Lloyds Banking Group in connection with the HBOS scandal, a fraction of the £300m that he was originally asking.
However, the bank rejected this amount at a mediation process in November and came back with a much lower counter-offer, prompting Edmonds and his legal team to walk out of the talks.
The Deal or No Deal presenter claims that the bank which was taken over by Lloyds during the financial crisis, HBOS, was responsible for the collapse of Unique Group, his media company, in 2007.
Edmonds and his lawyers will now be starting legal proceedings against the bank early next year.
“The next time we meet with the bank will be under completely different circumstances, and they will certainly not be able to settle at £10m,” stated Edmonds’ lawyer at Keystone Law, Jonathan Coad.
Six people have already been put in jail for their role in the said fraud, which involved piling clients with debt that is then asset-stripping them as they broke under the weight. Lloyds has set aside £100m in order to compensate the victims, under a scheme that is run by Professor Russel Griggs who supervised an independent inquiry into the handling of the bank regarding the claims.
Edmonds was originally asking £300m from Lloyds, an amount which was arrived at in the original claim against the bank before the appointment of forensic accountants.
The case was put into mediation because of the significant compensation that was sought, and forensic accountants that were paid for by litigation funding were appointed and assessed that the damages suffered by Edmonds were closer to £70m.
By the close of the mediation process, the TV presenter said that he was willing to accept only £10m to drop the claim. However, the counter-offer of Lloyds was much lower.
“We recognise Mr Edmonds suffered personal distress and inconvenience as a result of him interacting almost a decade ago with an ex-HBOS employee convicted earlier this year in relation to criminal conduct at HBOS Reading Impaired Assets office,” stated a spokesperson from Lloyds. “However, we strongly refute that this caused his business to collapse.”