“APPALLING” and “simply unjust”.

Customers and bosses of a Wimborne-based building society have united to condemn charges paid by the company to bail out failed banks.

Teachers Building Society, which has its headquarters on Hanham Road, will pay nearly 35 per cent of its pre-tax profit to the Financial Services Compensation Scheme (FSCS) Levy.

Bradford and Bingley, The London Scottish Bank, and failed Icelandic banks, are among those to have called on the government’s insurance scheme for deposits in failed banks.

“Teachers provides mortgages mainly to teachers and local members, who have proven to be a good risk, and funding the excesses of certain banks when we have managed our lending responsibly is simply unjust,” said its chief executive, James Bawa.

“While there has been no direct impact on jobs at Teachers, ultimately the cost of the levy will be funded by lower interest rates for savers and higher interest rates for borrowers,” he added.

Local saver Colin Jones joined Mr Bawa in condemning the levy. Customers of so-called “mutual” societies share in the profits of the firms in which they invest.

“It’s appalling that a mutual such as Teachers Building Society is suffering penalties when there is no accountability for the people who caused the problem.”

North Dorset MP, Bob Walter, who represents Wimborne in Parliament, recently visited staff at the society’s Allenview House HQ to show his support.

“I believe the FSCS levy in its current format punishes ordinary savers and prudent building societies and their members in order to fill the vast hole dug by irresponsible banks,” said Mr Walter.

“This is unfair and sets a precedent in financial services that all must be penalised for the mistakes of a few.”

The MP has signed an Early Day Motion highlighting what building society bosses believe is a disproportionate impact of UK building societies of the FSCS Levy.