Compensation for Farepak customers
It has emerged that Farepak customers will receive an estimated 15p for every pound they lost in the 2006 collapse of the Christmas savings club.
The planned payout follows the company's former directors' agreement to pay £4 million in compensation, despite not having admitted liability.
While the 15p in the pound is higher than previously forecast, the proposed figure is a tenth of the £40 million lost by 120,000 former customers.
The Wiltshire-based firm ran a savings scheme which helped people to spread the cost of Christmas spending across the year.
Many of the people hurt by the company's collapse were on low incomes or pensioners.
After the Farepak and its parent European Home Retail went into administration in October 2006, the victims - who lost an average of £400 each - were left with little hope of compensation.
Administrators BDO told the Sunday Times: "The settlement will increase the estimated dividend payable to creditors. Based on current information, we estimate that the dividend will increase from about 5p in the pound to about 15p."
Some customers have already received money from Farepak's administrators after they took legal action.