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Written by rosalind renshaw

High street law firms up in arms over HSBC’s new conveyancing policy are being invited to display a poster in their windows telling the public they might want to consider getting a mortgage elsewhere.

The ‘public announcement’ poster warns that HSBC really stands for Home Selling and Buying Compromised.

It claims that anyone who has had a mortgage offer from HSBC will now face additional costs, delays and stress, plus an increased chance of the transaction aborting.

The poster explains: “HSBC are now forcing their mortgage applicants to use one of  panel of only 43 law firms throughout England and Wales, chosen by the bank to do their legal work, or face paying more for your conveyancing after HSBC changed their rules.

“Prior to HSBC changing their rules, you had a choice of using one of thousands of firms.

“Previously home buyers could choose their own legal representation, but HSBC has decided that we cannot act for them any longer.”

It adds: “While we accept that HSBC can impose restrictions on their loan conditions, no other well-known lender has taken such draconian action.

“Not only does this restrict your freedom of choice, it also damages the future prospects for local law firms … Now is the time to think carefully about where you get your mortgage from.”

The poster campaign has been drawn up by the Bold Group on behalf of its members.

Rob Hailstone, Bold’s founder, said: “It is the first time in my 37 years in the profession that I have seen lawyers unite and fight.”

Comments

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    What's the collective term for bankers?

    .....A wunch....

    • 09 February 2012 15:46 PM
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    Hawkeye, other email address looks fine but try, rob.hailstone@gmail.com.

    • 08 February 2012 17:14 PM
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    Rob H - just tried your e-mail and it bounced back. Good start but try harder next time and post us a workable e-mail. I want a poster.

    Think the in the know at HSBC is amusing but the first line rings some truth. They will not be bothered because there will be plenty of lawyers who will bw happy to be on the bandwaggon. I know of one who will not as he thinks and has decided he can stay home in bed and lose money but goes to work to earn some.

    I am not a lawyer and don't want to be but I have worked closely with some and rather them than me.

    • 08 February 2012 14:11 PM
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    Its in the best interests of the buyer to advise against HSBC on the grounds of delay and self interest, even if they have a cheaper mortgage product. The loss of the home theywant to buy is more important.

    • 08 February 2012 12:10 PM
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    The new rules introduced by HSBC are cumbersome and unreasonable. One ridiculous example, the buyer’s lawyer has to undertake to “Ensure that any assumptions made by the valuer about the property are correct.” In addition, exchanges will be delayed and a minimum of 11 working days notice of completion are required from receipt of the Request for Funds (usually from exchange). No more 3 day, 5 day, 7 day or possibly even 14 completions then. The public will just love that.

    Not only are those buying with an HSBC mortgage likely to be affected by more stress, additional costs and longer delays, chances are everyone in that particular chain will also be negatively affected. The knock on effect will reach estate agents, brokers and others involved in the home buying and selling process.

    Hundreds, if not thousands of law firms bank with HSBC and have done so for many years. Those firms often hold large amount of money in their client accounts. In return for the many years of customer loyalty they have shown they were, without consultation or warning, told they can no longer act for HSBC. Many of those firms are now moving their accounts (business and personal) away from HSBC.

    Will the campaign work? No, probably not if most interested parties sit back and do nothing but moan, but yes if they unite and take some action. If anyone wants a copy of the poster or any further information about the campaign, please email me at rh@boldlegal.co.uk.

    • 08 February 2012 10:18 AM
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    HSBC are pricey and cut all sorts of corners - as a small business I started with HSBC because of their promises and high street presence - which quickly became apparent as a front. They provided appallingly bad advice and I found myself in huge debt to them, which took around 3 years to settle, but in the meantime I started another account with another bank and reduced my bank charges by £3000 per annum. Similarly my merchant (card) facilities were much cheaper elsewhere and as my small business grew I wasn't stifled by banking charges.

    The days of the comfy old Midland bank are long, long gone, HSBC are in it for world domination but they think they can overstep the mark based on size. Let's hope the lawyers' campaign is the beginning of a bloody nose for the Hong Kong and Shanghai Banking Corporation, at least in this small backwater that is Britain.

    • 08 February 2012 10:15 AM
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    HSBC certainly know the meaning of making enemies. I wouldn't personally touch them with a bargepole for either banking or mortgages. They also have a draconian way of using their automatic Right of Set Off, taking money out of one account to pay money owing on credit card accounts. This issue is currently being reviewed by the Financial Ombudsman. Unfortunately the current legislation is defective and lacking in this area.

    • 08 February 2012 09:55 AM
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    It amazes me that the law firms ever agreed to act for lenders in the first place. Their terms and conditions of business for lawyers are universally atrocious and clients never understand that in reality the costs of a transaction double because of a lender's involvement. The essential problem with conveyancing is that it is way too cheap, as conveyancing is not that formulaic (unlike personal injury claims). The firms that have gone for the pile it high sell it cheap method have often gone bust because the potential for a massively expensive balls up is so great - and quite simply who would want to do it; you won't get quality staff?

    Far from driving Porsches most conveyancers work weekends, have to deal with rude and stressed out clients and then wander a little dazed off to their clapped out Ford Focus wondering why they wasted their time doing a law degree when they could have done something more sexy!

    More fool those firms stupid enough to be on the HSBC panel. The managing partner may (if his insurers let him) be able to pretend to live the dream (although there are other far more profitable areas of law) but the hundreds of staff working for him will be condemned to a life of stressful drudgery being paid a pittance.

    I'd call for a strike against all lenders and their ludicrous petty bureaucracies if it was me and refuse to act for them until they were made to pay for the true cost of their pettyfoggling.

    • 08 February 2012 09:36 AM
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    Isn't this the same that happened to surveyors?

    Starts with a panel company that stands between bank and surveyor.

    Ends up with bank using panels exclusively and the surveyor doing the job for tuppence ha-penny.

    In the end the client ends up with a survey that is legally unenforceable, the panel company ends up with the best profit margin and the bank is able to say "nothing to do with us".

    I feel very sorry for high street solicitors because their business model is disappearing rapidly.

    • 08 February 2012 09:04 AM
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    LOL!!

    Like we at HSBC are bothered by a thousand local law firms!!!!

    We are HSBC the 2nd largest bank in the world!

    You lawyers are only worried you are now going to get no business from HSBC mortgage customers do you'll be trading in your Porsche's for Ford KA's! Lol!

    Like a rubbish poster in your windows will achieve anything! The public will move to whatever lender is offering them the lowest remortgage rate bit because they want to help a posters cause!

    Just off to order my new Aston Martin using some of my £1.3m bonus I just got paid by HSBC as I'm a director in global banking and markets.

    • 08 February 2012 08:45 AM
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