Savers fear Equitable Life settlement

EQUITABLE LIFE policyholders fear the troubled mutual could still launch a last-ditch attempt to settle its £3.7bn claim against its former auditors and directors rather than go ahead with the huge case on Monday.

Savers at the society, who have seen the value of their savings plunge dramatically in recent years, believe Equitable would rather reach an agreement than leave itself open to fresh compensation claims from policyholders.

Equitable's historic High Court action is set to last until Christmas.

Paul Weir, head of the Equitable Life Contributors Action Group, said the society had conceded the litigation could leave it open to new claims from members as more information about the reasons behind its near-collapse five years ago are made public. He said: 'Equitable will bluster and fluster but if Ernst & Young offers them two and six-pence and a banana I fear they will take it rather than open themselves up to new claims.'

Equitable chairman Vanni Treves insists he is still open to an approach but the group is ready to do its talking in court.

Liz Kwantes, co-ordinator of the Equitable Life Members Support Group, said many savers simply wanted an apology. 'A lot of people will be very pleased to see the ex-board squirm but all we want is for them to say sorry - no one has ever turned round and said that.'