Law Society fights bank’s conveyancing panel cull
Santander and the Law Society are in discussion over the bank’s decision to drop hundreds of solicitors from its conveyancing panel.
Last year, Santander introduced a one-off fee of £199 plus an annual £99 compliance fee for solicitors on the panel. In July, however, Santander sent letters to many firms informing them they could no longer remain on the panel because they had not carried out enough conveyancing transactions.
A Law Society spokesperson says the number of solicitors affected could be a few hundred, although neither the Law Society nor Santander would know the exact figures for some weeks as an appeals process is on-going.
Some firms have appealed successfully, while others have been told their removal from the panel was a mistake, he says. Solicitors have expressed annoyance at the fact they paid a renewal fee only to be told a few months later that they had been dropped.
The Law Society has urged all affected firms to appeal, and will meet with Santander representatives shortly to discuss a possible “sustainable solution”.
Law Society chief executive Desmond Hudson says: “We retain grave reservations about the methods they are using and are concerned about the effects both on firms and consumers.”
A spokesperson for Santander says: “We continue to manage our conveyancing panel in relation to both quality and activity. Firms which do not meet our expectations are removed from the panel but always have a right of appeal.”
In January, HSBC cut the number of solicitors and conveyancers borrowers could use from several thousand to just 48, but backed down four months later under pressure from the Law Society and other user groups. Customers of the bank complained the decision, which meant they had to pay additional legal fees for HSBC’s part of the transaction, caused delays and increased the risk of house sales falling through.
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