Equitable Life victims could receive payout
Wednesday 14th January 2009, 12:51PM GMT.
Equitable Life victims are to receive compensation from the government after almost a decade, a report has suggested.
The Treasury has confirmed an announcement will be made this week on the findings of a four-year inquiry into the government’s role in Equitable Life’s collapse.
In July last year, a report by the parliamentary ombudsman said the government should pay compensation to a million Equitable Life customers who lost up to 50 per cent of their savings when the firm almost collapsed in 2000.
However, the government has always denied accountability and said it would not rush into a decision.
According to the Telegraph, the Treasury is set to admit at least partial blame for the scandal, entitling some victims to a payout.
A tribunal is expected to be set up to determine the level of compensation for those who lost their cash.
However, not all campaigners – who have demanded £4 billion from the government – will be satisfied with the decision.
Paul Braithwaite of the Equitable Members Action Group told the newspaper: “The risk of a tribunal is that we will face further delays for what is now a terribly overdue necessity. We are not seeking charity, this is about a right to justice.”
Equitable Life is accused of overpaying investment returns in the 1980s and 1990s, which meant it had inadequate reserves to meet its obligations.
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