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My parents were swindled out of £250,000 life savings in Philips Trust building society scandal – we’re all suffering
William and Catherine Burton were duped out of £250,000 savings by the Philips Trust
PULLING back the hospital curtain at her father’s bed just days after he had suffered a stroke, Tracey Steedman was horrified to find two strangers speaking to her parents.
The now 53-year-old from Wallsend, Tyne and Wear, had no idea her mum and dad would later be swindled out of their £250,000 life savings - and that she would still be fighting for them over a decade later.
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Assisted living warden Catherine and her husband pipe-fitter William Burton, 63, were among the thousands of building society customers who lost money in the Philips Trust scandal.
Tracy, council housing officer, said: “One day in September 2012, Mum went into her Newcastle Building Society branch to deposit money, like she did every month.
“The cashier asked if she had a will, which she did. They then recommended mum speak to their will-writing company to make sure everything was in place and mum was secure.”
A few days later, representatives from The Will Writing Company visited 61-year-old Catherine at home.
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They persuaded Catherine to put all her Newcastle Building Society assets and those held elsewhere into a trust fund.
At no point did the reps reveal they weren’t from the building society, but a separate company, Tracy claimed.
But before the couple could sign the contract, William suffered a stroke.
Tracy said: “ I took a few hours off work to see dad, only to find the curtains drawn. When I opened them, Mum was sat there with two people from The Will Writing Company. It was barbaric.
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“I asked them to leave. Dad, in his state, was questioning whether they were not supposed to be here. I said absolutely not.
"It was inhumane to have a man sign in that way. They clearly thought he was going to die. I was horrified.”
When William died two years later, questions were raised about the signature obtained in the hospital.
Tracy said: “My mum was one of those people who, if you had a nice smile, she’d hand you her life savings.
"She trusted Newcastle and so trusted the will writing company it had passed her details onto, so she was willing to write to HMRC stating she was present when the contract was signed.”
HOW TO AVOID PRESSURE TACTICS
THERE are several red flags to spot if a company is trying to persuade you to hand over your cash.
Legitimate financial companies should never pressure you to make a decision quickly.
Phrases like 'limited-time offer' or 'act fast or you'll miss out' are used to make people feel like they need to rush into making a decision - but this can have devastating consequences.
Before handing over any money, hang up and say you will think about it and call back.
This will give you space and clarity needed to make the right decision and consult other people to get some perspective.
And remember, if an offer sounds too good to be true, it probably is.
Claims of huge returns or amazing savings should be treated with caution - remember, if they were truly that good, everyone would already know about it!
By Laura Purkess, consumer features editor and consumer champion
Fortunately, the concerns Tracy and her brothers had about William’s trust funds did not result in problems after his death.
The couple’s home was in Catherine's name only, and the value of his bonds had grown. They were sold for £90,000 before reaching maturity.
If things ran relatively smoothly after William’s death, it was a different matter when Catherine died in 2021, age 74.
In 2018, the Will Writing Company went bust and third party company called the Philips Trust Corporation took over their assets.
After the PTC wrote to customers, some Newcastle Building Society customers decided to move from sound investments and put into new investment vehicles run by PTC, before it went bust in April 2022.
Newcastle Building Society says it tried to warn customers against this.
The family were able to sell Catherine's house for £150,000 without too much trouble, but tackling the assets proved trickier.
Tracy was told by Philips Trust that she would need to wait until March 2024 before her mother’s bonds matured, which she knew wasn’t true.
Her father’s bonds had been sold before maturing, and this was the route she and her brothers instructed Philips Trust to explore.
It was just awful to know [mum] had scrimped and saved all her life, and it was just gone
Tracey Steedman
“I sent a copy of the death certificate, the will and a letter of our wishes. This was signed for at Philips Trust's offices, but then it all went quiet, no one would answer their landlines, and mobiles went unanswered," she said.
“My brother asked a friend to go to the PTC's offices, where a security guard confirmed no one had been there for months."
Tracy estimates her mother’s bonds are worth around £250,000 and is still not convinced she and her brothers will ever see a penny of it, due to the mis-management by Philips Trust.
She said: “When mum died, I had six months off work because of this. I just broke because I’d lost my mum and then potentially lost everything she’d worked for.
"It was just awful to know she had scrimped and saved all her life, and it was just gone.
“Mum asked me to put her ashes on her parents’ grave, but they’re still in my sitting room. I can’t do it until I feel I’ve done right by them.”
The couple are just two of the thousands of building society customers who have been affected by the scandal.
Lynn Parsons, of the Philips Trust Action Group, added: “If the building societies want to restore their integrity and our trust in them as mutuals, we would like to see all victims treated fairly.
“All entry and exit costs and associated losses caused by these trusts need to be returned, along with professional fees and associated HMRC costs.”
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In May this year, Leeds, Newcastle and Nottingham building societies announced that they will voluntarily reimburse over 2,000 customers who placed money in the now-failed trusts, despite not being obligated to do so.
It means that Tracy now has some home that the money will be returned.
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