Whilst there is considerable transparency in relation to interest rates paid by Banks and Building Societies to private individuals the same cannot be said for their dealings with Solicitors Client Accounts. With financial institutions continuing to increase the spread between the rates that they pay on deposit and those they charge for credit there is an increasing suspicion that some law firms and their clients are losing out. This is particularly the case when financial institutions are increasingly reliant upon deposits to fund their lending operations and in the context of a funding gap that is likely to arise as and when the Bank of England special support is withdrawn for mortgage funding.
In an attempt to shed some light on this topic Wolverhampton Law Society is inviting members to supply details of the rates they are being paid on Client deposits. The information required is as follows:-
Firm name Rate earned on general client monies and name of bank/building society Rate earned on designated deposit accounts and name of bank/building society
A jpeg copy return appears below.
Any details received will be treated in confidence, anonymised and then tabulated prior to circulation. This will be limited to those firms which have taken part. It is hoped that the results will give members a rough idea of what rates are achievable and possibly assist them in discussions with their bank. We have already called several of the larger firms who have indicated a willingness to participate.
The Council Member responsible for the survey is Andrew Lund who used to collate the “Expense of time” calculations used in negotiations with local District Judges over guideline rates. Please send details by post / DX in an envelope marked private and confidential and for his attention to arrive by 18th June.
We are also trying to interest The Law Society in Chancery Lane in carrying out a national survey.
In an attempt to shed some light on this topic Wolverhampton Law Society is inviting members to supply details of the rates they are being paid on Client deposits. The information required is as follows:-
Firm name Rate earned on general client monies and name of bank/building society Rate earned on designated deposit accounts and name of bank/building society
A jpeg copy return appears below.
Any details received will be treated in confidence, anonymised and then tabulated prior to circulation. This will be limited to those firms which have taken part. It is hoped that the results will give members a rough idea of what rates are achievable and possibly assist them in discussions with their bank. We have already called several of the larger firms who have indicated a willingness to participate.
The Council Member responsible for the survey is Andrew Lund who used to collate the “Expense of time” calculations used in negotiations with local District Judges over guideline rates. Please send details by post / DX in an envelope marked private and confidential and for his attention to arrive by 18th June.
We are also trying to interest The Law Society in Chancery Lane in carrying out a national survey.
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