With the recession biting everywhere and reaching its lowest troughs, it would seem that no profession is safe from cutbacks; 3,600 conveyancing solicitors have been unceremoniously dropped from their positions as advisors to two leading high street banks.
Britannia and the Co-Operative have imitated rival building society Abbey’s decision to fire their panel of conveyancing solicitors from their positions in what seems to be a knee-jerk reaction to the current recession.
The Law Society has requested that the banks reverse this decision, however the banks claim that their investors had made it clear that if they didn’t make this move then they may withdraw mortgage fraud cover.
The move will have negative implementations for the customers of the building societies, as it means that they will have to go to another law firm to get their consultations on the conveyancing process in addition to affecting the conveyancing solicitors, who hail from all areas of the country, including Coventry.
A spokesperson for the banks claimed that they simply could not afford to choose the panel’s jobs over the support for mortgage fraud and they have had to consider the best interests of their investors and their customers.
They were not overjoyed to see the panel go, as they have put in some stirling work over the years, yet it was a decision made for the greater good; mortgage fraud can be a devastating criminal activity to the victims of such con artists and both the public and the banks can lose large amounts of money.
As the banks offer the best cover at the price, the two building societies could not afford to go elsewhere, even though this may have led to the solicitors being kept on.
It is doubtless that the dismissed solicitors will find some other work at other companies, yet for those that do not have an immediate fallback plan, the coming months will be tight; it is hoped that Abbey will at least reverse their decision and take back the 7,000 conveyancing solicitors that they dismissed earlier in the year.
If you have a query or question about any element of the conveyancing process, or are in the market to buy or sell a property and would like some expert legal advice then don’t hesitate to contact a Coventry conveyancing solicitor for a professional consultation.
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