Its correct name is "The Mutilated Notes Section". "The Mutilated Ladies " actually originally referred to the women employees who worked in that section - I think there used to be about 5. The Bank of England is sometimes called "The old lady of Threadneedle Street" because it has been there a very long time - several hundred years. If you have any damaged paper currency such as a pound note, five pound note, twenty pound note etc you can take it to the Bank and they will replace it or you can send them to the Mutilated Notes section who will replace them as long as they convinced that the notes are real. Notes that are only slightly damaged can be exchanged at any local bank or post office.