Co-op accuses solicitors of hiding conveyancing charges in small print


Conveyancing: Co-op tells consumers to avoid lawyers charging by the hour

Co-operative Legal Services (CLS) has accused some solicitors of hiding extra charges in the small print of their quotes.

Issuing a warning to consumers, CLS said that in a highly competitive business like conveyancing, “it is all too easy to find yourself buying what looks like a cheap conveyancing service when, in fact, the end price will be inflated by hidden charges”.

The move is the first sign of an aggressive push by CLS in the wake of receiving its alternative business structure licence and announcing plans to recruit 3,000 extra staff over the next five years.

It said: “When scrutinising the small print of your conveyancing quotes, look out for abbreviations, which are sometimes used to help conceal extra charges. A common example is ‘PI’ or ‘PI contribution’, the PI standing for professional indemnity insurance. This is an overhead and should be included in the solicitor’s basic fee.

“Another common abbreviation is ‘TTF’ for telegraphic transfer fee. This fee will apply if amounts of £60,000 or more are being transferred, for example, if you are redeeming your mortgage. However, if the amount is less than this, the BACS system can be used for free.”

CLS – which was promoting its own service, including a ‘no sale, no fee’ guarantee – advised consumers against instructing solicitors who charge by the hour, and that they should steer clear of those who include in the “small print” other overheads such as postage and phone calls, as well as time spent dealing with the lender and filling out paperwork.

Similarly, if disbursements are not itemised “or again, if ‘added extras’ appear in the small print, it may be best to look elsewhere”, it said.

A spokesman said: “Moving house is stressful enough without the worry of unexpected extra conveyancing costs. That’s why it’s important to use a reputable and reliable service that offers free advice and a ‘no move, no fee’ guarantee.”

 

Tags:




Blog


From ‘year zero’ to £6.5m – how a law firm found its second life

In 2018, I hit what I call ‘year zero’. On paper, Olliers Solicitors was a top-tier criminal defence firm but beneath the surface, I could see we were at a crossroads.


Linklaters’ chief growth officer takes the ‘blank sheet’ challenge

In the third and final part of this series, Lucy Murphy, chief growth officer at magic circle firm Linklaters, outlines her vision for the law firm of the future.


The ‘blank sheet’ challenge, part 2 – what would you do differently?

In the second part of this blog series, Shainul Kassam, managing director of small London firm Fortune Law, sets out how she would set up a law firm now.


Loading animation