FAMILIES are being sent threatening letters telling them to change their buildings insurance provider or pay a fee.

The letters are being sent by Welsh company The Compton Group, saying leasehold residents who do not pay within 14 days will be served with "a notice".

But the scheme has angered MPs because in 2003 the Commonhold and Leasehold Reform Act was introduced to ban the practice.

Katherine and Chris Roberts, of Alderley Lane, Leigh, who live with their two children, Rebecca, aged two, and Abigail aged six months, have received several letters.

Mrs Roberts said: "We have insurance with Abbey, but now we have received a letter from The Compton Group saying we have to change to Zurich or pay the company a £30 fee. I phoned Zurich for a contents and building insurance quote, which is what we have with Abbey, so I could compare the two. To take out a policy with Zurich is £10 more a month.

"If we don't, we will be given a notice and we fear this may be an eviction notice. We don't think we should be bullied into paying this, but we are a bit scared by it.

"At first, we ignored the letters, but now they have become nasty and threatening so I'm writing back."

Neighbour Derek Mycock, aged 63, has been experiencing problems with the company for a year. He said: "The company is saying we have to take its approved insurance, but the regulations say that landlords can no longer specify which company to take insurance with so I don't understand how it is doing this.

"I think it's disgraceful and completely wrong when there is legislation to prevent this."

Bolton North-east MP David Crausby fought to introduce a clause about insurance into the Commonhold and Leasehold Reform Act which should rule out this practice.

He said: "The Compton Group buys the leaseholds and then tries to milk as much money out of people as possible.

"It's disgraceful that they just send these letters, which I think are a bluff.

"I would advise people who to contact their local MP. They should not just cave in to these sort of threats."

No-one from the Compton Group was available for comment.