LSCC Is Concerned With Abbey’s Move

Law Society conveyancing committee warned that the majority of firms removed from

Abbey’ panel of lenders face the risk of going out of business.
Last week, Abbey removed 7,000 solicitors from its approved panel of lenders as they, according to the bank, have performed too little bank transactions in the last 12 months. Since then, Abbey contacted firms and promised to reinstate them in case they can prove their suitability for doing business with Abbey.
Janette Wilson, convenor at the Law Society conveyancing committee said that the committee is especially concerned about Scottish solicitors, who work either in rural areas, in small partnerships or even practice sole business, especially that they have been hit real hard by the downturn on the property market. Also, Wilson says the change is going to affect bank’s clients, who will be obliged to pay extra fees for the services of independent solicitors. Earlier, legal services were included in the bank’s fee.
The Committee plans to meet with bank representatives to settle down the case, as the conveyancing committee believes that it is not enough to solely reinstate the solicitors if they prove their business case.