Co-op jeopardizes ethical image by threatening consumer choice and putting livelihoods at risk
Released on:
09/10/2009
The Law Society has today criticised the decision by Co-operative Financial Services [CFS] to leave 3,600 sole practitioners solicitors businesses at risk of closure.
If others follow suit then access to justice in small towns and rural areas could be severely damaged as local law firms are wiped off the map.
The Co-operative Financial Services is the group of businesses that includes The Co-operative Insurance and The Co-operative Bank including smile and Britannia.
In September CFS gave sole practitioners one month’s notice of their removal from the Britannia conveyancing panel. CFS cite insurance difficulties as the driver for their decision, but the Society is not convinced by their argument.
The Law Society is dismayed by the CFS's decision. CFS widely claims it has created a fair and ethical alternative to other high street banks, yet this move is not only unfair for consumers and solicitors, it reduces consumer choice for house buyers and unfairly deprives sole practices of business during the worst economic recession for 60 years.
Law Society President Robert Heslett said, "We consider this decision belies CFS's claim that they are committed to leading the way on ethical and community matters. CFS say that, "Britannia already has a commitment to social responsibility and both companies see this as a great opportunity to create a strong organisation, founded on long-standing values of trust and ethical behaviour", yet this move could well contribute to putting several thousand solicitors livelihoods and the livelihoods of their employee's at risk."
As well as businesses closing and hundreds of staff being made redundant, the move will deprive clients of using a Solicitor of their choice, says Robert de Coninck, of Alsager-based De Coninck Solicitors, one of the sole practitioners has been on Britannia's conveyancing panel for 25 years, acting for house buyers and sellers arranging mortgages. He said: "The vast majority of sole practitioners rely heavily on conveyancing. In my case, it's something like 75 or 85 per cent of my business and of course, if the major building society in your town decides not to use you, you're going to be very badly affected."
He adds, "This absolutely could put people at risk of going under. The housing market has fallen drastically over the past 18 months, so anyone who relies on conveyancing is already suffering. This could be the final straw."
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