The Law Society recently announced a new Quality Mark aimed at Conveyancers. To be launched in January next year the scheme has backing from the Association of British Insurers and the Council of Mortgage Lenders.
Many see the initiative as the Law Society’s response to pressure from both the ABI and the CML to get its house in order in the wake of a wave of losses stemming from mortgage fraud and negligent conveyancing made visible after the tide turning in the property market.
So far members of the profession have given the scheme a qualified thumbs up. However, there are concerns and here are some that have already been aired by members of the Wolverhampton Law Society.
More bureaucracy on top of already effective risk control measures?
The requirements to carry out crb and credit worthiness checks on members of Accounts staff and those carrying out conveyancing seem overly intrusive and the legal basis unclear. Most firms already have in place controls to prevent monies being requisitioned and transmitted without authorisation from Partners or senior members of staff. The latest requirements add yet another layer of bureaucracy and red tape.
Lack of certainty
The “Client Charter” an integral part of the initiative has yet to be published but firms are being asked to embrace the scheme nonetheless – it is hoped that it will not introduce “Call Centre” type service level requirements beloved by big business.
Who is in charge and what if your application fails?
Who exactly will be vetting applications and carrying out audits? What are their qualifications? What appeal process is there if any?
Is this being driven by a sector with its own vested interests?
What in put has there been from high street practices – is this a scheme that has been thought up by and designed for the benefit of the big “Factory” conveyancers who have seen their business models under pressure as volume has gone out of the Housing Market (and notably re-mortgages)? Why are there reports already of the scheme’s promotion being reliant upon “referrers” (presumably Banks, Building Societies and Estate Agency chains)?
Is there real commitment from the CML?
Whilst welcoming the scheme the CML has reserved the right to introduce its own!
Lack of transparency around criteria
Why do the criteria for membership include consideration of the proportion of income a firm derives from Legal Aid? When we asked the Law Society whether or not this reflected concerns that firms that relied upon conveyancing and legal aid work were considered in some way risky, or their business models financially unsound, they would not answer!
Don’t delay………Have your say!
There is a real sense that if High Street firms want to continue to even have the chance to act for Lenders then there is no alternative but for them to grit their teeth and get accredited. However, there is still time to make your feelings known and try to improve the Scheme so that it works for all conveyancing firms from the smallest to the biggest.
Please send your feed back / comments to Andrew Lund Council Member by e-mail to lawsoc_press@reespage.co.uk
What happens next?
Once we have received members’ feedback we will communicate this to The Law Society via its regional manager Clive Black.
