From This is Money:
Hilary Messer, the respected solicitor fighting their case, has written to Sam borrowers warning that they will need to pay more if they want the battle to continue.
Sams were sold to older homeowners during 1998. The lenders charge no interest but can claim most of the increase in value of borrowers’ homes on resale.
Sams cause hardship because the rise in house prices means homeowners cannot afford to buy smaller properties as their share of equity in their home shrinks. Many remain trapped in big homes that they are unable to maintain or even heat.
In 2008 Messer asked for £5,000 from borrowers to launch a group action against both banks and is thought to have raised a fund of about £1.6m.
She won a significant pre-trial victory in 2009 when a judge agreed that Sams cases could come under a group litigation. However, both banks appealed and Messer says fighting the appeal has drained cash.
‘But for the appeal and attendant costs we would have had sufficient ca…
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