HSBC panel restriction represents penalty charge for
borrowers
The Law Society of Scotland has expressed its deep
disappointment at HSBC's decision to restrict its solicitor panel
to only four firms in Scotland and says that this imposes a penalty
on homebuyers who want to choose their own solicitor.
Ross MacKay, convener of the Law Society of Scotland's Property
Law Committee, said: "We are very concerned at the lack of
consultation with solicitors' professional bodies both here and in
the rest of the UK. HSBC's decision introduces a very restricted
panel of solicitors firms which can act for both the bank and their
customers in the purchase of a property and ends the bank's
long-standing practice of allowing all qualified solicitors to
carry out the security work.
"The move restricts the freedom of homebuyers to choose their
own local solicitor to act in the whole transaction, by imposing on
them a separate charge of almost £200 unless they agree to use an
HSBC panel firm.
"We fully understand the requirement for banks to have secure
systems in place to prevent mortgage fraud and to ensure that they
have valid securities over marketable properties. In fact we have
worked with a number of major lenders in reviewing the size of
their solicitors' panels while retaining as wide a choice as
possible for homebuyers. HSBC's move seems to take no account of
the distinct geography of Scotland, where the continued provision
of legal services in some remote areas is in doubt."
The Society has also expressed concerns that recent publicity by
HSBC about the changes could mislead customers into thinking that
costs such as Stamp Duty Land Tax and Land Registration fees are
also included in the overall fee which would be charged by their
panel solicitors.
Ross MacKay added: "It is vital that members of the public are
made fully aware of all the legal costs involved in buying a home
so that they can make an informed choice."
FOR FURTHER INFORMATION:
Please contact: Val McEwan on 0131 226 8884 or Suzy Powell on 0131
476 8115.
09 January 2012