Lloyds Banking Group  is set to miss an end-June deadline for offering compensation to victims of one of Britain’s largest fraud cases, the latest delay in a decade-long struggle by business owners for redress.

Two former bankers at Lloyds’ HBOS Reading business were among those jailed in February for their involvement in the scam, which affected 64 people, including Noel Edmonds, a TV presenter and former disc jockey.

Lloyds set up a £100 million compensation scheme in April and set the end-June deadline for payment to victims hit by the fraud, which involved siphoning off money from struggling businesses.

Swift, fair and appropriate compensation

According to one source with knowledge of the matter, less than a fifth of the 64 victims have received compensation offers and only one has reached a settlement with the bank.

Edmonds is seeking more than £70 million in compensation for businesses he alleges were destroyed by the fraud. He has set up a website with an “honesty countdown” clock showing the time remaining for Lloyds to meet its self-imposed deadline.

Lloyds on Tuesday said it now plans to make compensation offers to some customers by the end of June. Others “might need more time to provide input into the review,” it said.

A bank spokesman said in an e-mail: “Our focus is on swift, fair and appropriate compensation.”

HBOS, once Britain’s biggest mortgage lender under the Halifax and Bank of Scotland brands, had to be rescued in a state-engineered takeover in 2008 by rival Lloyds Banking Group. Lloyds subsequently needed a £20 billion bailout of its own after taking on HBOS.

Victims of the fraud have accused the bank of dragging out the compensation process and underestimating the final amount it will have to pay.

The delay in compensation is adding to the stress of victims, some of whom have lost their homes or investments and had families crumble, said Nikki Turner, one of the victims who helped to uncover the fraud with husband Paul.

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