HSBC in U-turn over conveyancing row

HSBC has largely climbed down over its decision to restrict its choice of conveyancers, following widespread protests and complaints – plus a petition to the Government with over 2,000 signatures.

However, with up to 4,000 law and conveyancing firms still excluded by HSBC, it remains to be seen whether the bank has done enough to satisfy its critics.

At the start of this year it cut its managed panel to 43 firms, sparking claims that conveyancing was taking so long that deals were falling through and estate agents were telling borrowers not to go to HSBC.

From August, HSBC will allow all solicitors accredited with the Law Society’s Conveyancing Quality Scheme homebuying quality mark – around 1,400 firms – to act for HSBC as well as for its mortgage customers.

Martijn van der Heijden, head of lending at HSBC, said: “We introduced our panel in January to provide additional protection for both our customers and the bank.

“We listened to feedback from customers and solicitors, and through working with the Law Society can now agree to more solicitors  acting for us while also managing our risks and maintaining the unique benefits of using one of our panel solicitors.”

Desmond Hudson, chief executive of the Law Society, said: “The bank has been constructive in working with the Law Society in designing this solution. As well as giving its customers a much wider choice of solicitor that can also act for HSBC, it has  aligned itself further with the CQS and the high standards the scheme represents.”

Under the new system, HSBC mortgage customers will have three options. They will be able to use the managed panel; or they will be able to use CQS members not on the managed panel; or they will be able to choose their own solicitor who is neither on the panel nor a CQS member and, as now the case, pay £160 for an HSBC panel firm to complete the work required by the bank.

The Society of Licensed Conveyancers pointed out that this latest decision does not open up the panel for its own members, but said it hoped that HSBC would give them ‘the same opportunity’.

Richard Hinton, business development director of SearchFlow, said: “Although the number of firms able to work for HSBC is now hugely increased, there remain between three and four thousand firms who are still excluded.”

Rob Hailstone, of the Bold Legal Group, which organised the e-petition to the Government, said HSBC’s decision was welcome, but added: “Our work in this area is not yet done.”

He said lenders needed to agree to a more uniform approach to conveyancing, and said that the public, lawyers and estate agents were ‘fed up with the current scattergun approach’.