Stay and pay at the BSA

In our December/January issue Chatroom reported that a number of building society chief executives were crying ouch over the eye-watering new scale of subscription fees introduced by the Building Societies Association. The fees went up by an inflation-busting 10%.

However, the word is that the societies have signed those big cheques payable to the BSA but it’s not a win-win scenario. The loser is the BSA’s near neighbour, the Council of Mortgage Lenders.

Apparently, in these difficult times there’s just so much money in the kitty for trade association subs but is it really a case of tribal loyalty coming first?

Defending its corner, the CML said just two societies have fled its fold – the Kent Reliance and Shepshed, and for the record its fees went up by a reasonable 3%, although we’re told by other sources that the average sub is around £16,000. However, the CML doesn’t charge exit fees, whereas as the BSA imposes an action inhibiting three-year subscription penalty in the event of a society pulling its membership – so is it a case of stay and pay at the BSA?