Hi

I recently receieved a note from the Society suggesting that I write to my MP concerning the high level of payment required by the Society. Anyone got any suggestions as to how this letter might be worded - I have never written to my MP before.

EcoSys

Thanks - will get something done to post after the holidays.

Harold

Dear HC

Here are some standard paragraphs which you might find useful:

Financial Services Compensation Scheme – suggested text

As a member of the Ecology Building Society I would like to draw your attention to the fact that the future development of small mutual societies is being adversely affected by the levy placed upon them under the Financial Services Compensation Scheme (FSCS) in support of savers in the failed Icelandic Banks, Bradford & Bingley and other banks. Currently, the Ecology faces a bill of around £270,000 in this regard. It is my understanding that because of the way the FSCS scheme is constituted, the impact on building societies is particularly heavy, and even more so on the smaller societies who have done nothing to contribute to the problems engendered by the too high dependence of Banks on the operation of the wholesale money markets. The disproportionately high price being paid by building societies arises because the levy relates to the level of the customer deposits held, which tend to be higher for mutual organisations.

Whilst it is accepted that all organisations should contribute to the underwriting scheme, it is iniquitous that such a high burden should fall on organisations such as the Ecology merely by virtue of operating a safer mutual model and who are now, in effect, underwriting the riskier business models of the Banks and unsustainable rate-chasing activity on the part of some savers.

This seems wholly unfair and I am therefore asking that you promote a restructuring of the FSCS scheme, arguing that the levy should be more closely related to the risk each institution poses to the financial system, with higher risk organisations paying a higher share.