A BUILDING society is to close its only branch in the York area as part of a streamlining and cost-cutting operation in the wake of the credit crunch.

Newcastle Building Society is planning to shut its Davygate branch in September, affecting five members of staff.

It says the number of customers using the branch has fallen significantly over the past two years, and York has one of the lowest levels of usage of any of its branches. It also falls outside the society’s “core heartland area” where the Newcastle intends to focus its activities in future. But the decision has left the branch’s remaining customers facing a long journey to the next nearest branch in Stokesley if they want face-to-face advice.

The society has also told customers that while they can carry on managing their accounts via the telephone or internet, they can also use their passbook account by putting a request in writing and posting it, along with their passbook but not cash, to the headquarters in Newcastle.

However, one customer, Tony Kelly, of Wigginton, said today he would be very reluctant to send any such documents by post in case they went missing.

“We are not at all happy about this. We are trying to decide what to do,” said Mr Kelly, deputy sports editor at The Press, who, with his wife, Diane, has been a customer with the Newcastle for about 20 years.

A society spokeswoman said it acknowledged there would be some members who would be “inconvenienced” by the proposal. “However, a decision to maintain these branches (which we have concluded are unviable) would limit our flexibility to continue to offer competitive service and attractive products to the whole of our membership.”