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Harrods has revised the terms of a compensation scheme to be offered to hundreds of sexual abuse victims of the department store’s former owner, Mohamed al Fayed, ahead of its formal launch this week.

Sky News has learnt that lawyers for Harrods have increased the maximum potential payout for survivors of Mr al Fayed from roughly £330,000 to a sum closer to £400,000, following consultation with claimants’ legal representatives.

Sources said final proposals for the compensation scheme would be published on Monday – although some victims may still face a lengthy wait to receive their payouts.

Harrods, which is owned by a Qatari sovereign wealth fund controlled by the Gulf state’s ruling family, said last year that it was “utterly appalled” by the disclosure that Mr al Fayed had sexually abused numerous female employees during his 25-year ownership of the Knightsbridge store.

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‘It was horrific’

People close to the talks about the compensation scheme said the final proposals included general damages lump sums of up to £110,000 or £200,000 – with the higher figure available to claimants willing to submit to psychiatric assessments arranged by the company.

These figures are unchanged from draft proposals which were subject to consultation in recent weeks, although other elements of the proposed compensation payments have been revised upwards, with the effect of increasing the potential maximum sums that could be paid out, the people added.

The redress scheme is being coordinated by MPL Legal, an Essex-based law firm.

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Last weekend, Sky News reported the contents of a document produced by MPL Legal which said that victims of Mr al Fayed who chose a “non-medical pathway” – which would not require any form of medical assessment – would be eligible for “general damages limited to compensation for sexual assault of up to £110,000”, with “aggravated damages [of] up to £15,000”, and “wrongful testing fixed payment(s) up to £7,500”.

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‘Al Fayed’s language was very sexualised’

Claimants who agreed to an assessment by a scheme consultant psychiatrist – referred to in the document as the “medical pathway” – would be eligible for general damages of up to £200,000, further payments equivalent to those potentially awarded to non-medical claimants, as well as treatment costs “past and future supported by the medical report” and a “work impact payment capped at £110,000”.

The “wrongful testing” payments refer to women who were forced to undergo unnecessary and intrusive medical examinations demanded by Mr al Fayed, while the “work impact payments” relate to loss of earnings triggered by, for example, the unjustified termination of victims’ employment at Harrods.

One source said the revised maximum compensation sum to be disclosed on Monday was now expected to be between £350,000 and £400,000.

The requirement to undergo a psychiatric assessment by a medical practitioner selected by Harrods in order to access the largest payouts risks angering claimants who have endured years of psychological trauma after being abused by Mr al Fayed.

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‘Many more’ likely abused by Fayed

A person close to the store said this was a necessary legal step.

External law firms which have been organising separate cases against Harrods are likely to argue that the terms being published on Monday are not sufficiently generous, and impose too many legal restrictions and disclosure obligations on victims of the store’s former owner.

Depending upon how many women submit compensation claims either through the MPL Legal scheme or via another law firm, Harrods’ compensation bill is ultimately expected to run to tens of millions of pounds.

A Harrods spokesperson reissued a statement previously given to Sky News, saying: “It would be premature for us to comment on the nature and details of a scheme that is currently under consultation.

“We are actively inviting the valuable input from Survivors and their legal representatives to establish the final scheme that aims to be survivor-first, trauma-informed, and fair in its approach to compensation.

“Further updates will be provided once the consultation period is complete.”

According to a website set up by MPL Legal for the purposes of administering the scheme, “Harrods and MPL Legal are undertaking a period of consultation regarding the compensation scheme in which we will receive detailed feedback from interested parties, including several legal firms representing survivors, leading Counsel and Dame Jasvinder [Sanghera], the Independent Survivor Advocate”.

“It is anticipated the final compensation scheme will be published and survivors will be able to access application forms from 31 March 2025.”

Mr al Fayed, who died in 2023, owned Harrods for a quarter of a century, selling it in 2010 to Qatar Holding for £1.5bn.

His reign of terror at the Knightsbridge store is thought to have involved hundreds of predominantly young female victims, with former Fulham women’s players also alleging sexual abuse by the billionaire Egyptian.

Mr al Fayed also owned Fulham Football Club, as well as the Ritz Hotel in Paris, for a number of years.

The MPL Legal document previously reported by Sky News said the redress scheme would “provide options for survivors – an alternative route to the court process”, and that it would “hopefully avoid an adversarial approach which also risks retraumatising survivors”.

It added that the scheme would be “as inclusive as possible – we want the scheme to work for as many survivors as we can”.

Under the heading “Scheme principles”, MPL said it represented “an alternative to litigation, but a survivor can leave the scheme at any time and pursue the claim through the court system”.

It said it hoped that law firms engaging with the scheme “will ensure survivors receive 100% of the compensation”.

“The level of compensation available through the scheme has been designed to mirror the court’s approach,” it added.

Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.

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Prince Harry denies having ‘physical fight’ with Prince Andrew

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Prince Harry denies having 'physical fight' with Prince Andrew

Prince Harry has denied having a fight with Prince Andrew after it was claimed “punches were thrown” between the pair in 2013.

The allegations appeared in excerpts from a new book on the Duke of York being serialised in the Daily Mail.

It claims a row started after Prince Andrew said something behind Harry’s back, with Andrew “left with a bloody nose” and the pair needing to be broken up.

It also claimed the Duke of York once warned his nephew about marrying Meghan and suggested it wouldn’t last long.

However, a spokesperson for the Duke of Sussex strongly denied the claims.

“I can confirm Prince Harry and Prince Andrew have never had a physical fight, nor did Prince Andrew ever make the comments he is alleged to have made about the Duchess of Sussex to Prince Harry,” a statement said.

They said a legal letter had been sent to the Daily Mail due to “gross inaccuracies, damaging and defamatory remarks” in its reporting.

The book – Entitled: The Rise and Fall of the House of York – is billed as the first joint biography of Prince Andrew and ex-wife Sarah Ferguson.

It’s said to be based on interviews with “over a hundred people who have never spoken before”.

Prince Harry – in his own 2023 book Spare – made his own claims of an altercation with Prince William.

He said his brother once knocked him to the floor amid a confrontation over Meghan’s “rude” and “abrasive” behaviour.

“It all happened so fast. So very fast,” Harry wrote in the book.

“He grabbed me by the collar, ripping my necklace, and he knocked me to the floor. I landed on the dog’s bowl, which cracked under my back, the pieces cutting into me.”

“I lay there for a moment, dazed, then got to my feet and told him to get out,” the prince added.

Harry claimed his brother wanted him to hit him back “but I chose not to”, and that William later returned and apologised.

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The Duke Of Sussex has described his relationship with his family as extremely strained after he quit as a working royal and took legal action against the media, and over the removal of his UK police protection.

He claimed earlier this year the King wouldn’t speak to him and there had “been so many disagreements between myself and some of my family”.

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Search for British woman who disappeared from Greek beach

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Search for British woman who disappeared from Greek beach

A search is under way for a British woman who went missing from a beach in Kavala, northern Greece.

The Hellenic Coastguard said the port authority received reports that Michele Ann Joy Bourda, 59, was missing on the evening of 1 August.

The woman went missing from the Ofrynio beach area.

The coastguard is investigating reports that her belongings were left on the beach.

On Sunday, three recreational craft, five fishing boats and two patrol boats were involved in the search.

According to local media, she lived with her husband, who is reportedly of Greek origin, in the Macedonian city of Serres.

She had gone to the beach with him and reportedly vanished while he was sleeping on a sunbed.

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The charity LifeLine Hellas, which put out an appeal to try and find Ms Bourda, said she went missing at noon on 1 August.

She has been described as having straight blonde hair up to her shoulders and being 1.73m tall.

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Martin Lewis reveals who is due for car finance compensation – and how much they’ll get

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Martin Lewis reveals who is due for car finance compensation - and how much they'll get

Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.

The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.

“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.

Pics: PA
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Pics: PA

Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.

“So up to about a maximum of £950 per car finance deal where you are due compensation.”

Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.

However, the personal finance guru warned against using a claims firm.

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“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.

Read more: How to tell if you’ve been mis-sold car finance

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Who’s eligible for payout after car finance scandal?

Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.

Lewis told Sky News that the consultation will launch in October – and will take six weeks.

“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.

“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”

He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.

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What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now”.

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

Any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

The FCA has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.

But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.

The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

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