KEY POINTS:
Former consumers' champion David Russell - who as head of the Consumers' Institute criticised equity release firms - has accepted a job in the industry.
Mr Russell has become a board member of home equity release company Sentinel, although he admits he thought "long and hard" before accepting
the role.
Mr Russell worked at the Consumers' Institute for 35 years, 15 of them as chief executive.
"I like Sentinel's strong advice to people about releasing equity in their home, to discuss the deal with their family, their lawyer and an independent financial adviser," he said.
"A lot of other commercial organisations could learn from Sentinel's example.
"A strong customer focus, particularly in regard to flexibility and transparency, are qualities I respect in the company. From what I have seen, Sentinel works with people, not impersonal prospects."
Mr Russell acknowledged he had criticised some home equity release companies. "I have been critical in the past. People have not had sufficient information on which to base their decision. Provided people know what they are going into, I have no problem with that.
"That is what is appealing about [Sentinel]. The people are definitely pointed in the direction of independent advice."
He saw no problem in moving from a consumer advocate to his new role.
"I've been running an ethical company for the past 15 years. I have had to make the organisation work financially, which a lot of people don't understand. I know the principles of running a business and there's no conflict of interest between that and what I'm moving into."
Mr Russell said he would be getting paid "bugger all" in his new role.
"Only a fraction of what I previously earned, I assure you. I am not selling my soul ... I have been invited, and I have accepted, to be a board member of Sentinel and I am pleased to do that. I am getting a modest stipend which is very small in terms of an annual salary. You would not be able to live on it."
The job begins with a board meeting this week. "I hope to be able to reinforce the consumer perspective on a commercial board."
Sentinel allows home owners aged 60 and over to take out a cash loan using their house as security. The debt is repaid when the owner dies or the house is sold.
Mr Russell said the interest rate for the loan was about 10.5 per cent. "But it's offset, certainly in current market conditions, by the increasing value of the property."
The company, which has 90 per cent of the market, has given loans to almost 4000 clients.
How it works
* Home owners - who are often elderly - take out cash loans using their houses as security.
* The debt is repaid when the owner dies or the house is sold.
* Home owners pay interest on the loan but may still end up better off if house prices rise.
