Mr Connarty urged Farepak customers to join the protest

The bank provided an overdraft facility to the collapsed Christmas hamper company's owner European Home Retail but its withdrawal led to the collapse.

Linlithgow and East Falkirk MP Michael Connarty wants a boycott of the 11 December event at the HBOS HQ.

However HBOS said it had "acted responsibly" in the matter.

He has urged politicians to join him for a protest at the Edinburgh venue instead.

HBOS has pledged �2m to help customers but Mr Connarty said this was not enough.

The arrogancy of HBOS inviting us all to a champagne Christmas reception is appalling Michael Connarty Linlithgow and East Falkirk MP

The Labour MP said: "Myself and other members of the Scottish parliamentary group and probably members of the Scottish Parliament have been invited to a champagne reception by HBOS at the reopening of their refurbished headquarters at The Mound.

"They should come with me and the people who have been ripped off by HBOS and Farepak and protest outside that champagne reception and demand that they give the money back to the people from whom they took it."

Mr Connarty later said: "The arrogancy of HBOS inviting us all to a champagne Christmas reception is appalling."

He urged Farepak customers to join the protest.

"This is not just about anger," he said. "For many people this is a deep personal tragedy. They don't have a Christmas."

'Absolute scandal'

Jim Devine, Labour MP for West Lothian, said: "This is an absolute scandal. The people involved in this are the organised poor, and I do not say that in a patronising manner.

"These are people who didn't use loan sharks, didn't use bank overdrafts and did not use credit cards. These are people who saved."

In response to the boycott call, HBOS communications manager Shane O'Riordan told BBC Scotland's Newsdrive programme: "We are disappointed with that and will do our best to change Michael's mind on that score.

"We have done nothing wrong. We have acted responsibly all the way through.

HBOS defended its handling of the Farepak situation

"We have made the single biggest financial contribution to the Farepak fund and what we actually did was stand by our customer during its financial difficulties."

He added that the company had received a positive response from a lot of MPs over its donation to the fund.

Speaking on Radio Scotland, South of Scotland Conservative MSP Derek Brownlee said: "I welcome the news that much financial support is being offered to the victims of the Farepak fiasco.

"A number of constituents have contacted me about the collapse of Farepak and it is encouraging that a number of large retailers have already agreed to make a contribution.

"The most important thing is that the government ensures that a situation like this one is never allowed to happen again."