Post Office scandal: £10,000 payment 'cruel' says bankruptcy victim

Tony, 56, bought Hawkshead Post Office in 2001. Over the next six years, he and his wife Caroline were forced to spend £35,000 of their own savings to cover 'losses' that did not exist.

Rather, it was caused by a flawed computer system called Horizon. With the shortage continuing, they could not afford to spend another £7,000.

“I quit my job because I didn't have any money left. I told them I was selling the post office. I managed to pay off most of the debt, but because I didn't have enough money, I was advised to file a tax return. Bankruptcy. “

Tony was already suffering from stress and anxiety from all the financial pressures. At one point, he says he felt suicidal.

“I was scared to drive because I thought, 'I'm going to kill myself.' I managed to hold out until I sold it, but that was it. It just fell apart.”

Tony blamed himself and felt too embarrassed to remain in their small community.

They expelled their daughter from school and fled without giving her childhood friend a chance to say goodbye.

“We just ran away,” Tony says. He then had a nervous breakdown and has not worked since.

He and Caroline live in a small rented apartment in southern Spain to be close to their parents and have support. His £120 a week income is made up of benefit payments.

Then, just 18 months ago, he learned about Horizon's failure.

Tony has completed an application seeking compensation from the Horizon Shortfall Scheme (HSS). When the Postal Service accepted the offer, it accepted responsibility for the Horizon branch's losses, but denied that they were the cause of Mr. Horizon's bankruptcy.

After selling the post office and shop, Tony repaid the £60,000 commercial loan he had secured because he could not risk his wife's family home.

But the Post Office argued that Tony should have paid off his other debts first. As a result, so far only £10,000 has been awarded in compensation for personal suffering.

Tony received £140,000 to cover the shortfall and 26 months of lost income plus interest, but the money was swallowed up by his debts and taken directly into public receivership to repay creditors. Sent to someone. He receives the remaining surplus.

Tony is currently being represented by attorney Hudgell, who is objecting to his offer.

“Tony has been incredibly static,” says Neil Hudgell, a partner at the firm.

He said if the Post Office had admitted it had caused Tony's bankruptcy, it would have paid a much higher award, covering 17 years of lost income due to his inability to work. claims that it is possible.

“Given that in many cases it was the Post Office that caused the financial failures that preceded these bankruptcies, it is particularly cruel for subpostmasters to be deprived of the compensation that the Post Office was supposed to pay. It's ironic,” Hudgell said.

“When we ran the post office, we had no debt,” Tony says. Business went surprisingly well. But he took £35,000 from us and it went a long way…we didn't want to go broke. ”

“I now have no career, no money, no pension, nothing… They took all that away from me.”

“At this point they are a long way from putting me back in place, but they have to acknowledge the cause and effect of doing so.”

There are currently 74 bankruptcy cases in the Horizon Deficiency Compensation System.

The Post Office told the BBC that it had admitted cause of insolvency in 25 of the cases to date. It is unclear whether the plaintiffs settled after receiving any legal advice, but 17 cases were settled.

Neil Hudgell's firm has dealings with more than 40 people and is trying to “unravel the truth”, with some former subpostmasters and postmistresses running out of time to reach a resolution. We are warning that this may occur.

He said Mr Downey had a “very strong” case and believed HSS was wrong to rule that customers were bankrupt by refusing to accept the Post Office.

“Tony was essentially debt-free before he took over the Post Office. Within two months of leaving, he went bankrupt… It was generating cash until he realized the problems with Horizon,” he says. .

Bankruptcies add further complexity to an already complex case, take the longest time to resolve, and add to years of suffering.

“We need to start giving subpostmasters the benefit of the doubt. They often don't have documentation to support aspects of their claims, so we need to reduce the legal attrition war and Hudgell believes it's important to look at things 'and do what's right, fair and appropriate.'

On his first visit to the village he left behind, Tony feels nervous but validated.

His fight isn't over yet, but now, all these years later, he thinks he wants to “wave a little piece of paper and say it wasn't me…it wasn't me.”

His old post office is no more. It closed over a year ago. This building is currently used as a nursery school.

A Post Office spokesperson said: “While we do not comment on individual cases, we are aware that compensation for victims of the Horizon IT scandal, who were declared bankrupt or insolvent due to Horizon's shortfalls, is complex and lengthy. I am fully aware that it is a process, and I apologize.

“All offers made under the Horizon Shortfall Scheme are assessed by an independent committee including forensic accounting experts. You have the right to dispute the cost and seek legal advice regarding the offer you have received.'' You will receive your refund at the Post Office. ”