The Law Society takes action against HSBC’s conveyancing panel arrangements
The Law Society has written to its members concerning “the detriment that is being caused by HSBC’s high handed and arrogant decision” to only use conveyancers listed on its conveyancing panel, which is being managed by Countrywide.
In the strongly worded letter written by The Law Society’s chief executive Desmond Hudson, solicitors concerned about HSBC's panel are urged to contact their MP; and for those firms, or partners, who are shareholders in HSBC, to use their rights as shareholders to complain.
The Law Society is even considering buying HSBC shares so it can also use that avenue to press its concerns
Business Secretary Vince Cable has said he will raise the issue with his colleagues in government following a meeting with the president of the Law Society last week.
The Law Society is also seeking urgent meetings with relevant consumer bodies and trade bodies including the Building Societies Association, the Council of Mortgage Lenders, the Financial Services Authority and the National Fraud Authority.
The letter stated: “This decision by HSBC is damaging both to the consumer interest and to the profession and operates in our view to no one’s interest other than the short term interests of Countrywide and HSBC.”
The Law Society said it has been unable to get answers from HSBC but has spoken to Countrywide, which confirmed there are 43 firms currently on the panel but this is not fixed and other applications will be considered.
In its letter, the Law Society stated: “Given what HSBC and many firms have told us, we are not inclined to place much reliance on the practical effects of that statement.”
HSBC pays Countrywide for its management of the panel. Those firms admitted to the panel pay an administration fee in respect of services carried out by Countrywide.
Countrywide also operates a licensed conveyancing firm, which provides conveyancing services, and is also a member of the panel. Countrywide said the two firms are completely separate and they do not consider there to be any conflicts of interest.
The Law Society disagrees: “One company in their group will be administering a panel of suppliers for the bank, in circumstances where one of those suppliers is also a company in their group. We are surprised that HSBC considers that these arrangements are acceptable, especially given the fact that many consumers will be using the panel’s conveyancing services.”
Many firms of solicitors have contacted the Law Society expressing their concerns about HSBC’s panel and some have even indicated their intention to close their banking arrangements or move their client account from the bank.
Hudson confirmed: “The Society has decided that it will ensure that none of its funds are placed with HSBC or any member of the HSBC group, and we will be taking steps to consider any trading relationships we have with HSBC or the HSBC group.”
Solicitors and conveyancers are invited to send examples to the Law Society of where HSBC’s decision has adversely affected a client’s freedom to choose their own solicitor.
Transitional or pipeline cases are not affected. The Law Society said it is unclear whether HSBC has put in place an appeals procedure for those firms not meeting criteria for its panel.
