Cable asks FSA to look at role of HBOS in collapse of Farepak Business Secretary Vince Cable has referred HBOS, now part of Lloyds Banking Group, to the FSA after his prosecution of the Farepak directors collapsed last week. In a statement Mr Cable also said he would also be contacting HBOS to establish how they would respond to calls for the bank to pay more into the Farepak creditors" compensation fund. "I have written to the bank involved - HBOS - to seek their views on the statement of the judge in the case and to understand what the next steps might be, especially when it comes to the matter of increasing the compensation fund," he said. I have also written to the FSA to seek their views on the comments made by the judge in respect of the bank. Mr Justice Smith exonerated the seven directors of Farepak of any blame for the collapse of Farepak, pointing the finger firmly at HBOS instead. He said the bank played "hardball" with the company forcing it to carry on accepting customer cash in the knowledge the company was heading for insolvency. The decision helped the bank escape with its debts fully repaid. Farepak customers saving for Christmas vouchers have yet to receive anything from the company. After the disqualification case against the directors collapsed Justice Smith said: "I would suggest that HBOS seriously consider whether or not they ought to make a further substantial contribution to the compensation fund. It seems to me that what happened here, whilst apparently legally acceptable, might not be regarded in the public's eyes as being acceptable. Mr Cable said he would be meeting with representatives of the 120,000 Farepak creditors and MPs to discuss what action could now be taken. The savers lost up to £35m when the company went under. However he defended the decision to bring the case against the directors. "This case was launched in July 2009, which was based on good legal advice and the Insolvency Service has had a very high success rate with disqualification actions," Mr Cable said. I want to stress that although disqualification proceedings have been dropped, the Government is considering the wider implications of the judge's statement and the way forward.