Building societies

Press, Volume CXI, Issue 32705, 7 September 1971, Page 16

Building societies

Sir, —The remarks of Mr J. C. Wilkin, assistant manager of the Northern Building Society, were certainly news. I refer to “a reasonable prospect of receiving appropriations within not more than 30 years from the date of the formation of the group of which he is a member.” First, I, as a member, do not know the date of the formation of the group in which I purchased shares in 1952. Second, even if the group was formed only in 1952, I would never have considered investing in it if I had been told that I had only a reasonable prospect of receiving an appropriation within j

■3O years. I was definitely informed that the period was 20 years at the most. Unfortunately, although I have the printed matter supplied in 1952, the termination period is not stated on this. So it is only the representative’s word against mine. It would seem that the name “building society” is a misnomer. “Funeral society”, would be better.— Yours, etc., DISILLUSIONED. September 1, 1971. [Mr J: C. Wilkin, assistant manager of the Christchurch branch of the Northern Building Society, would not :omment on this letter.]

Sit, —I support criticisms of building societies. My experience with them makes me insist that any communication be in writing and I was shocked to learn that Group 83 in the Northern Building Society, after being in operation since 1951-52, participated in only two ballot appropriations in 1969, held in May and September. Apart from the fact that I was misled into membership, a letter in 1969, said that appropriations by 1977 would be 144 per year, but a letter in 1970, claimed that the number of appropriations (ballots and tedders) would be 96. 1 drew the attention of the management to his discrepancy, only to be informed that my point had been noted. I would support an inquiry into the affairs of building societies.—Yours, etc., GROUP 83. September 6, 1971.

Sir,—l tried recently to obtain answers to questions, similar to those put by “Group 7 " from the Northern Building Society and received equally vague and unsatisfactory replies. My shares were taken out 22 Or 23 years ago and I have noticed that my group (211) rarely appears in the monthly ballot notices. I can only assume that the majority of the original members in this group nave withdrawn and that there is very little money coming into the group .with which to provide the funds for a ballot I hope, however, that I live long enough to finally draw my ballot as I am most interested in finding out what return my investment has produced. As a means of encouraging small savings, I agree that building societies perform a useful service, but as an investment I suspect that they will prove very disappointing.—Yours, etc., CURIOUS. September 4, 1971. [This correspondence's now closed.—Ed., “The Press.”]