MPs quiz banks over bogus law firms


Tyrie: we need to know the extent of this practice

The row over companies sending letters to customers in debt that falsely appear to be from independent solicitors’ firms, rather than their in-house lawyers, is set to rumble on after the Treasury select committee demanded information from the main high street banks about their activities.

Andrew Tyrie MP, who chairs the committee, has written to the bosses of RBS, Lloyds, Barclays and HSBC over reports that they have all used such tactics.

He has asked for details of how many letters were sent, to whom, and why they chose to send letters in this form, rather than marked clearly as being from the bank.

While seeking the banks’ views as to whether the letters were misleading, Mr Tyrie requested a copy of a typical letter sent out “so that the Treasury committee can form its own judgement on whether it is sufficiently clear”.

Mr Tyrie said: “We need to know the extent of this practice. Banks have repeatedly assured Parliament that they are raising standards and now have robust procedures in place to bring consumer detriment to an end. It would be extremely concerning if consumers had been routinely misled.”

RBS has already agreed to stop using solicitor-sounding names for letters, recognising that the practice can be confusing for consumers.

In a statement it said: “Our customers should never be in any doubt about who they are communicating with. We have reviewed our policies in this area and will stop the use of any solicitor or debt collection brand names in correspondence with our customers that could cause confusion.”

The furore began when for using bogus law firms. Last week the Solicitors Regulation Authority warned in-house solicitors that “attempts to mislead” debtors that external firms are taking steps against them could result in disciplinary action.

Tags:




Blog


Beyond the PII premium – rethinking risk

Professional indemnity insurance renewal is often treated as an annual pricing exercise. But it is also a chance to show how effectively you identify, manage and mitigate risk.


The AI governance gap in law firms and why it matters now

A third of law firms are already using AI tools with no formal policy in place to govern how AI gets used, what data goes into it, or who’s accountable when something goes wrong.


Information isn’t oversight – lessons from the PM Law review

The PM Law review’s real findings perhaps point to a failure mode applying to any organisation sitting on scattered risk information.


Loading animation