C&G hotline is averaging 2,000 calls each day from members

THOUSANDS of callers flooded Cheltenham & Gloucester's telephone hotline this week to ask for details about its proposed takeover by Lloyds Bank.

The calls have averaged 2,000 a day, most of them from members who are confused about their eligibility for bonuses in the event of the takeover taking place.

A C&G spokeswoman said: 'A lot of the queries have revolved around whether people who have switched from deposit account to share accounts are members for the purpose of the payout. Under the two-year rule, continuity of membership is not regarded as broken if a C&G share account is closed in order to switch the funds immediately into another share account.'

The Lloyds offer involves pounds 1.8bn being paid out to C&G customers, with a minimum payment of pounds 500 per qualifying account plus 13 per cent of account balances with the society, subject to detailed criteria on eligibility.

However, borrowers do not qualify for a payout, nor do people who have held a share account since before 31 December 1992, but at some time between then and completion day stopped having one, even if they switched to a deposit account. C&G will be writing to all investing members who, according to its records, do not qualify for payment. They will be invited to show two-year membership of the society where it exists.

C&G Futureline 0345 889900.