Most Keydata victims have compensation offers

By Richard Dyson
Updated: 04:08 EST, 6 June 2011

 

Norwich & Peterborough Building Society says all but a few of the 3,200 customers who it advised to invest in failed firm Keydata have been sent individual offers of compensation and many have already been paid.

The society says only a 'very small number of complex cases' have yet to receive offers.

Norwich & Peterborough, which was fined in April for mis-selling the bonds through its branch network, has apologised for the debacle.

The redress it is offering, on the same terms to all Keydata customers, is calculated to return to savers their original capital, plus a small rate of interest.

But many are dissatisfied, arguing that N&P should compensate for distress and for the legal costs incurred during their two-year fight.

Members are also angry they had not received their offers by the time of the society's April 27 annual meeting.

They argued that they needed to have the offers in hand so they could discuss them with the disgraced board, under the chairmanship of Gordon Horsfield.

At the meeting, Horsfield promised to hold another meeting, or several, once the compensation letters had been sent. But the society appears to be backtracking.

Next month, N&P, which suffered a £60m hit from the Keydata fiasco, will ask members to vote through its takeover by larger rival Yorkshire Building Society.