THE boss of an East Lancashire building society today said he was "extremely disappointed" over the Bradford and Bingley vote to convert to a bank - but pledged the Marsden would remain owned by its members.

And he said the society, which has 76,000 members, would continue its vigilance over the so-called carpetbaggers who open accounts in the hope of windfall payments. Burnley MP Peter Pike today called the decision by B and B members to opt for conversion - and a £1,000 windfall pay-out - "a very sad day."

But Neil Shoesmith, who heads the Nelson-based Marsden society, stressed the Bradford and Bingley was in a very different situation.

"They are a national organisation whereas we are a regional building society aiming to serve only the North West," the chief executive said. "We had our annual meeting recently and I spoke to many members and none of them asked when we were going to convert or be taken over."

The Marsden is far too small to consider converting to a bank on its own but has still been a target of carpetbaggers.

"These are people who are ransacking the reserves of building societies for their own benefit and against the long-term interest of the members."

In the past the society has been forced to increase the minimum opening balance to deter carpetbaggers.

"We monitor the situation closely and if we need to take action we will.'

The society has already stopped giving membership accounts to applicants from outside the North West. Mr Pike, who with other MPs signed a House of Commons motion calling for Bradford and Bingley members to reject conversion, said that in the long run members would pay more in terms of higher mortgages and lower interest on savings.

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