Cash threat to bank protest group SAFE

By RICHARD DYSON
Updated:

SAFE, the lobby group representing people brought together by their unfair treatment at the hands of banks, has run into financial difficulties and is likely to fold after 20 years of campaigning.

However, money recently raised by SAFE members to fund litigation against banks is not at risk.

SAFE was founded in 1990 by an advertising executive with a complaint against Barclays.

Bank HQs

Dispute: Lobby group SAFE and law firms have fallen out over expenses

In its early years SAFE - Struggle Against Financial Exploitation - captured the public imagination with dramatic stunts, including putting up spoof Barclays billboards featuring customers in a noose and a tableau outside the bank's 1992 annual meeting in which another 'customer' was crucified.

More recently, SAFE played a central role in representing thousands of borrowers with controversial shared appreciation mortgages (Sams).

These were sold in 1998 by Barclays and Bank of Scotland, now part of Lloyds Banking Group. Sams, which did not charge interest but took as their payment most of the increase in value of borrowers' homes since 1998, caused hardship to many people because their diminishing equity forced some to stay in their homes, even if they could not manage or maintain them.

SAFE was successful in raising the plight of Sam borrowers in Parliament and in 2007 forced Barclays to launch a scheme that let those borrowers deemed to be in serious difficulties 'freeze' their loans.

Last year, SAFE used its membership base to raise about £1.6 million from Sam borrowers who were invited to contribute £5,000 each to fund a legal battle against both lenders. The money is secure whatever happens to SAFE, former director Robert Owen, 70, told Financial Mail last week.

The funds are in an account controlled-by law firm RWP in Pangbourne, Berkshire, and partner Hilary Messer is fronting the legal action against Barclays and BoS. She confirmed that the money of all Sams clients was accounted for.

But SAFE and RWP have fallen out over expenses. SAFE bosses claim the group is owed £30,000 formerly promised by RWP, which denies making any such promise. Messer secured a significant early victory last autumn when she won the right to group Sam cases together in a single, class action.

Both Barclays and BoS had fought to prevent Messer from doing this, effectively raising the cost bar for individuals who would otherwise have to fight their cases singly. The banks are currently appealing against the decision to allow a class action.

Because many borrowers have repaid their Sam loans - or died - in the 12 years since they were sold, it is estimated that only 10,000 remain in force.

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