Society launches campaign against HSBC panel cuts
The Law Society has advised solicitors to complain to their MPs about HSBC's decision to radically reduce the size of its conveyancing panel.
The Law Society has advised solicitors to complain to their MPs about HSBC's decision to radically reduce the size of its conveyancing panel.
In a letter sent to law firms today, Des Hudson, chief executive of the society, said president John Wotton had raised the matter with business secretary Vince Cable at a meeting this week.
Hudson said the society was considering making a small purchase of HSBC shares so that it may use that avenue to press its concern further at the bank's 'high handed and arrogant decision'.
The society said it would also 'urge all of those firms who are shareholders in HSBC, or partners who are shareholders in HSBC, to use their rights as shareholders to press their concern'.
Hudson said the society had contacted Countrywide earlier this week, which had 'secured a contract to act as agents or administrators for HSBC's panel'.
He said Countrywide were now saying that the reduced panel was not fixed at 43 firms and that other applications would be considered.
Hudson said that some of the firms who had contacted the society to complain had 'indicated their intention to close their banking arrangements or move their client account from HSBC.'
He went on: 'We completely understand the thinking behind such decisions, but these must be matters solely for individual firms to resolve.
'For our part, 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.'
He added: '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.'
A spokesman for HSBC and Countrywide said: 'We remain focused on ensuring that customers are provided with a high level of service that meets their conveyancing requirements.
'To meet our aim of a high quality panel, we have sought to select legal firms in England and Wales who already have CQS accreditation where eligible. However, where we are satisfied that a firm meets all of the other requirements we have added them to the panel on condition that they commence the CQS application process and achieve CQS status where eligible within a reasonable period of time.
'This approach recognises the fact that some firms who deliver a high-quality service have not previously felt a need to accredit themselves. We anticipate the Law Society will welcome us adding our voice to their request for firms to accredit themselves.'