Birmingham solicitors step in to help clients following closure of bulk conveyancing firm
Thursday, 14th January 2010
11 January 2010
Birmingham solicitors step in to help clients following closure of bulk conveyancing firm
The plight of distressed home buyers and sellers clients in Birmingham, Manchester and London, following the closure of bulk conveyancing firm Wolstenholmes, has prompted the Law Society, in association with Birmingham Law Society, to set up a scheme to assist desperate conveyancing clients marooned in the midst of property transactions.
Following the closure by the Solicitors Regulation Authority of Wolstenholmes, which has been shut down following suspicions of serious financial irregularities, a host of clients who exchanged contracts were unable to complete on the sale or purchase of their home.
The Law Society of England and Wales and Birmingham Law Society have joined forces to assemble a pool of Birmingham-based law firms who will be available to take on the work and complete the transactions without delay or inconvenience to the clients.
While a rigorous investigation into the firm is under way, the Law Society along with the Birmingham Law Society, and their counterpart in Manchester, have implemented a scheme to enable clients of Wolstenholmes to transfer their business to other solicitors. Those clients affected by the closure of Wolstenholmes have been assured that any money that they have entrusted to Wolstenholmes is secure and will be returned to them, either through the firm’s own professional indemnity insurance, or if appropriate the Compensation Fund administered by the SRA.
Law Society Chief Executive Desmond Hudson said; "The scheme is a response to a crisis situation which has arisen due to the closure of a firm following regulatory action. It is has been implemented to ensure that clients are not left in the lurch without legal representation. It is important to emphasise that clients have a free choice of firms both within the scheme and without. This action is a useful example of how the solicitors profession is keen to deal with problems in its midst and to protect the interests of consumers. Using a solicitor offers clients unique protections and guarantees, as this case shows."
The list of firms will be available through the Birmingham Law Society (Please see Membership section)
-This list is not an endorsement of these firms nor are they being recommended. Firms will be free to fix their own charges but should be aware that these clients have already experienced considerable difficulty
- To assist in the complicated process of returning funds to clients, the SRA has now appointed DWF – a carefully vetted firm of solicitors in the area – as an agent. They have taken custody of clients’ funds and files and have begun the process of contacting clients. They will also advise clients about their options following the intervention. Since there are around 4,000 cases, DWF are having to deal with these in order of priority. We are committed to rectifying matters for clients as quickly as possible: DWF have some 40 staff employed on this task, and have made special telephone arrangements to enable worried clients to contact them.
For more information call the Law Society Press Office on 020 7320 5902
