Norwich & Peterborough Building Society (N&P) has insisted it can meet any Keydata liabilities after law firm Regulatory Legal warned it is gearing up to lodge 400 complaints against N&P.
Regulatory Legal says it will lodge N&P “class action” claims worth £18m with the Financial Ombudsman Service (FOS) within the next two weeks on behalf of savers who lost money in Keydata products after investing on the back of the building society’s advice.
However, N&P, which had its Fitch credit rating downgraded from “stable” to “negative” last November amid Keydata redress concerns, insists it can meet any Keydata costs.
A spokeswoman says: “Our board has looked at what the eventual outcome of compensating Keydata investors might be and we think we are able to meet any liabilities. We are looking for a solution for everybody.” (article continues below)
Michael Cotter, a solicitor at Regulatory Legal, says that the FOS claims were made legally possible after N&P exceeded its eight-week deadline to respond to complaints internally.
He says: “We have not received any substantive responses from the N&P. It has not answered a single complaint.”