View Full Version : Some building societies to avoid

29-03-2004, 08:56 PM
I would suggest that all scout groups aviod the Staffordshire Building Society and Portland after this article!!!


30-03-2004, 06:56 AM
What is it about - the page won't display for me!

30-03-2004, 12:48 PM


12:00 - 15 March 2004

A Charity running a village Scouts and Guides headquarters has been denied a merger bonus by a building society. Gnosall Scout and Guide headquarters' management committee has held an account with Staffordshire Building Society for many years and was delighted to hear the group would be eligible for a bonus of £216 when the society became part of the Portman Building Society group.

But they were disappointed when they discovered they were ineligible for a bonus because the four named signatories on the account had changed in the sixth months before the takeover.

Portman says the first named signatory is recognised as the account holder, and as this name was changed no bonus would be given.

Committee chairman Ian Wilkes wrote to the building society, claiming the committee itself is the account holder and that the names on the bank mandate had to change by law, as the members of the committee changed.

Despite their pleas, a representative of Portman wrote back saying they had no legal right to the cash.

Mr Wilkes said: "They quoted building society law in the response to the letter that the committee sent and we have no reason to disbelieve them.

"Technically they may be correct, but from a moral point of view and considering that they claim to have community-based business values, their refusal to grant us our bonus does not seem to be the right response.

"Our running costs here at the headquarters are between £2,000 and £2,500 a year, before maintenance, and £216 would make a significant contribution towards this.

"We held a jumble sale over the weekend that will make about the same amount, £216, if we are lucky."

In his reply to Mr Wilkes's letter, Andrew Jones, group secretary and director of Compliance at Portman, said: "The Gnosall Scout and Guide headquarters' management committee will, I am sure be what is known as an unincorporated association.

"In building society law, if a contract of membership is to be created all the parties must have a capacity to contract.

"An unincorporated association lacks legal personality and accordingly is unable to contract.

"I trust you will accept, therefore, that in law, the society cannot recognise that the committee is the member, and therefore no merger bonus is due in this particular case."

A spokesman for Staffordshire Building Society said he did not wish to comment further on the charity's claim and stood by the contents of the letter from Portman's representative.

The committee will write to the building society once again to express its disappointment at the decision.

Mr Wilkes said: "We are really not satisfied by the spurious legal reasons given and we will be fighting the decision."

From a newspaper article

30-03-2004, 04:48 PM
Ohh ok, thanks Marcus...