ELTA PRESS RELEASE - 28 April 2004

Pensioners plan to sue Equitable

A group of Equitable annuitants who have seen their pensions slashed by up to 40% have decided to sue the Society for their losses.

“We are totally disillusioned with the Equitable board and the Government,” said Peter Scawen, chairman of ELTA.  “If they won’t respond to the moral case for compensation, we’ll have to use the courts instead.”

The group is inviting 60,000 with-profits annuitants to join them by May 14^th, to ensure that a writ can be issued before their case is ‘timed-out’ by the six-year Statute of Limitations. ELTA has been offered a ‘no win no fee’ deal with Bristol lawyers Clarke Willmott.

“In my opinion, the Equitable board are far more interested in protecting the Government’s coffers than looking after the victims of this scandal” said Scawen. “After the overwhelming evidence of mis-selling which came out in the Penrose report, it beggars belief that the Equitable board will not take legal action against the regulators and is now actively blocking EMAG’s offer to do it for them.”

ELTA claims that without legal action there is no hope for the Society’s trapped annuitants.  “The Parliamentary Ombudsman’s inquiry was a disgrace and we see no reason why she would do any better if she has a second go,” said Scawen. “This looks like a cynical attempt to keep us quiet until we have forfeited the right to seek legal redress.”

Equitable has claimed that the annuitants cannot leave the ailing Society because of Inland Revenue rules. However, the Inland Revenue has stated that this is not the case. Retired lawyer Nicholas Bellord, a member of the group said: “We are being held hostage by Equitable because to do otherwise would show just how desperate the Society’s finances really are.”

700 people have already contacted ELTA following a newspaper report last week and the group is expecting many more annuitants to join its action.  Members are being asked to pay an initial £100 towards the group’s fighting fund, with another £900 due in July if they agree to issue a writ. “If we can raise £400,000 we can do this” said Scawen.  “Now is the time for people to act.  If they don’t join us now, it will be too late.”

More information of the proposed legal action can be found on the ELTA website at www.elta.org.uk or by writing to ELTA at Mid Comp Farm, Comp Lane, Sevenoaks Kent TN15 8QT.

Editors notes

ELTA (Equitable Life Trapped Annuitants has been formed by a group of current Equitable Life With Profits Annuitants. The attached documents set out the group’s plans for legal action and reveal the legal advice they have received from Lawyers Clarke Willmott.

Paul Weir is not an annuitant and is acting for ELTA in a professional capacity.