HSBC conveyancing panel triggers backlash
High street law firms across the UK are frustrated and angered by the launch of HSBC’s conveyancing panel last week, said The Bold Group.
The network of high street law firms said it had been contacted by close to 100 member and non-member high street solicitor firms with more still getting in touch on a daily basis.
Many expressed frustration, disappointment, confusion and for those firms who had their client accounts with HSBC for many years, extreme anger.
A number of firms are considering what action they could take against HSBC.
Rob Hailstone, founder of The Bold Group, said it was understandable that many law firms felt both threatened and angered about HSBC’s decision.
He said: “I strongly believe that within a relatively short period of time, HSBC and its mortgage customers will regret this badly thought through and poorly implemented development and I would urge HSBC to reconsider its position now.
“HSBC’s recent decision will not only cause concern among conveyancing law firms but it will result in increased costs and delays for consumers as well as alarming the thousands of estate agents operating in the UK, who will not welcome unnecessary delays and needless red tape and bureaucracy.”
Hailston urged HSBC to look for an alternative solution.
He said: “By inviting a selection of experienced and respected conveyancing firms to discus and explore the issues HSBC is obviously seeking to resolve through its new panel, I am confident that an improved solution could be reached.”
The Bold Group will be collating feedback and concerns from member organisations, which it plans to submit to HSBC over the coming weeks.
Last week, HSBC established a panel of solicitors and licensed conveyancers managed by Countrywide.
The move will mean that HSBC will only use a panel firm to undertake its legal requirements.
Customers remain free to choose their own solicitor or conveyancer to act for them if they want.
Previously the chosen solicitor or conveyancer would undertake both parties’ legal work.
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A very peeved customer wrote:
I have been directly impacted by this, and the offer of choosing your solicitor (even for the £160 + VAT fee) is a total farce. My chosen solicitor (an experienced coveyancing specialist with decades of experience) was ready to have papers for signing on Sat 4th Feb in preparation for exchange this week. The week prior, Countrywide dropped 6 pages of requirements on him and then, on Monday of this week, he was contacted by the seller's solicitors notifiying him that they did not feel that the transaction would complete, as Countrywide were insisting on a return-of-funds undertaking that was wholly inappropriate. The net result is that today, 9th Feb (2 days after we were supposed to have exchanged), we've had to switch our entire conveyancing to Countrywide. Countrywide have informed me that this is a significant problem and multiple sales are falling through due to the onerous and inappropriate undertakings being demanded by HSBC. There is NO choice - you can pay the fee, but it appears you'll still end up having to go to Countrywide. It's absolutely despicable; we'll now face a legal bill from both our own solicitor and Countrywide, thorugh no fault other than HSBC's, a delay of many weeks (a potentially critical delay on a reposession, with HSBC aware of the timescales from the very start), and we're having to deal with a faceless firm with the most appaling reputation for customer service. And this is legal?? Had we not gone as far as we have, we'd be changing lender. I would sugegst everyone think VERY carefuly before proceeding with mortgages with HSBC.
09 February 2012 13:12:45 GMT
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