Unfairpak will call for another £10m from HBOS, which is now part of Lloyds Banking Group, reports said, despite the bank already having paid out £10m to date, including £8m last week.
Lloyds made the payment after High Court judge Mr Justice Peter Smith pointed the finger at Farepak’s bankers during a hearing in London.
Unfairpak is part of a delegation that will meet Business Secretary Vince Cable this week to discuss what the government could do next. Proceedings to disqualify the former directors of Farepak owner European Home Retail were thrown out, but the judge suggested the bank looked to its morals for further compensation.
HBOS said in a statement last week that it chose to make an ex-gratia payment of £8m “in the light of recent comments from Mr Justice Smith”.
It said it emphasised that HBOS had acted legally, but said the group had “wider responsibilities” to the community as well as legal and financial obligations.
The bank previously said its staff “acted entirely appropriately” throughout its relationship with European Home Retail, which also went into administration.