Society acts to stop cash-in moves

The Nelson-based Marsden Society has stopped opening accounts for people living outside its Lancashire operating area.

Money simply cannot buy a place with the society, they say.

The move is designed to stop speculators hoping to cash in on any future merger or take-over by a larger society or a bank.

Although the Marsden is firmly committed to keeping its independent society status, action was taken after it detected growing signs of speculator interest.

Even for those living within the Marsden area of activity the price of opening a qualifying share account has soared to £2,500.

And for those outside, the door is closed and barred.

"We will not accept what we see as clearly speculator applications, no-matter how much is offered. We simply don't need the money," said a spokesman.

The Marsden was featured on this week's BBC Panorama special which highlighted how smaller societies were diversifying their activities to keep pace with the times and compete with their big-brother neighbours in the housing market.

The society monitors its membership and feels it has few purely speculative members.

Chief executive, Eddie Shapland, says: "Those people who are opening accounts in the hope of a payout are deluding themselves and we are not going to be a party to that delusion."

The Marsden, however, has no plans to take the kind of drastic action adopted by the National Counties Building Society.

Yesterday it "sacked" hundreds of speculative account holders returning their money, together with a curt note stating that no reason need or would be given for the action so further contact "would serve no purpose whatever."

The cash-rich National Counties, Britain's 30th largest society operating out of just one branch, is the first to take a get-tough line with "carpetbaggers" but it is believed others may soon follow suit.

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