Britannia Building Society says it is “aggrieved” by claims it is profiting at the expense of elderly borrowers who were allegedly mis-sold home income plans in the 1980s.
Last week, Conservative MP Angela Browning highlighted the case of a constituent who was mis-sold policies by an employee of DBS Financial Management. Sonia Thompson, the adviser, later appeared in court charged with falsifying mortgage applications.
Browning told the House of Commons: “Even when the society was informed about the falsified documents, it still agreed to go ahead in arranging the home income plans. It would not hurt building societies to do the decent thing now.”
And Liberal Democrat Paul Tyler told MPs: “Lenders who have insisted on getting their pound of flesh should accept a freeze on any further interest.”
Responding, Ruth Kelly, financial secretary to the Treasury, said: “The fact is there is very little the government can do except bring moral pressure to bear.”
David Ginivan, corporate PR manager for Britannia, says: “We have acted fairly and responsibly in these cases. There is no legal onus on us and we have no culpability for these people falling into hardship.”