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Banks and Conveyancing Panels

I read with interest today a law firm is claiming it has evidence that banks and mutuals are misleading clients over conveyancing.
The Law firm claim that they know of one client who complained to the financial ombudsman.
They also claimed that lenders are dictating to clients and putting pressure on them by setting up authorised panels of conveyancers. They went as far to say that they have evidence that a bank had misled it's client over costs; in another a client was forced to use an expensive London solicitor; and in the third a nationalised lender unbelievably refused to discuss its charges.
They believed their evidence shows that lenders are abusing their position and does not have the interest of the clients are heart.
They went on to say: after approving a mortgage, a bank tried to allocate a conveyancer directly, but the client explained  they had already instructed their own law firm they were informed that a fee would apply anyway.
The figure was around hundred and £60, it suggests that the bank was quoting the full conveyancing fee.
In another case the firm had been acting for a lender with their authority but two days before exchange, they withdrew this authority and informed their client to use another law firm for the entire transaction or to use one of their chosen conveyancing firms to represent them.
The client therefore, given the timescale had no choice but to use another conveyancing firm from the banks panel.

 

Ocq

Posted: 31 January 2012


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