CQS is prerequisite for
new HSBC panel, but concern is raised over consumer
choice
HSBC has made the Law Society's
Conveyancing Quality Scheme (CQS) a pre-requisite for law firms on
its new lender panel announced this week, a move welcomed by the
Society, which is the representative body for all solicitors in
England and Wales. But the Society has raised concerns over the
bank's decision to only include 42 firms on their panel for the
whole of the UK.
The Society said that while it
was encouraging to see CQS continue to be recognised as the
standard mark in the residential conveyancing market, there
remained concerns over the small size of the HSBC panel.
Law Society chief executive
Desmond Hudson said: “HSBC's decision to appoint only CQS
accredited firms to its panel is further evidence that the scheme
is firmly establishing itself as an essential standard for lenders.
Nevertheless, we are concerned that fewer than 42 firms will serve
home-buyers who use HSBC for their mortgage in England & Wales.
Does this provide sufficient consumer choice?
“Although HSBC has a
relatively small share of the mortgage market, such a low number of
firms could struggle to provide all consumers - those who
struggle to communicate other than in person or those who would
prefer to use a local solicitor with the service they seek. With
more than 1000 firms holding the CQS accreditation mark in England
& Wales, HSBC need not limit its panel to fewer than
42.
'It is disappointing that HSBC
failed to consult the Society. I suspect they have made the
calculation that the majority of their customers will opt to use
the bank's solicitor.
'Being on a panel such as
that will be valuable. How long will bankers resist the temptation
for a quick profit by selling places on that panel and putting up
costs for house buyers? This is not in the long term interests of
consumers. HSBC should reconsider.
“The disabled, those
living in rural areas or even those wishing to simply use their
family solicitor will either have little choice but to opt for the
same solicitor as HSBC - one of their panel firms - or
pay twice over - for their own solicitor as well as HSBC's legal
fees.”
Ends
For more information on the Law
Society's Conveyancing Quality Scheme visitwww.lawsociety.org.uk/cqs
Find a CQS solicitor in your
area athttp://www.lawsocietyapproved.com/Conveyancing.aspx
SOLICITORS
who want futher information please call Anjali Mouelhi 020 7320
5883 or the Law Society practice advice line on 0870 606
2522.
Journalists contact: Steve
Rudaini, The Law Society
+44 (0)20 7316
5624