CFS asked to rethink conveyancing panel cuts

SUPER-mutual Co-operative Financial Services said today it had been left with “no option” but to remove more than 3,600 sole practitioners from its conveyancing panel.

The move, which has drawn criticism from The Law Society, came after the Manchester-based organisation said its insurers had insisted on the move.
CFS recently merged with the Staffordshire-based Britannia Building Society.

The enlarged business has nine million customers, more than 12,000 employees, 300 branches and 20 corporate banking centres.

In a statement CFS said: “Following the merger between Britannia and The Co-operative Financial Services, our insurers notified us that, unless we stopped instructing sole practitioners to act for Britannia or Platform Home Loans, mortgage fraud insurance cover for the entire business would be withdrawn.  

“The insurance market as a whole has hardened over the last 12 months. Cover is more expensive and more restrictive.

“Our insurers will not give sole practitioner cover and many other insurers won’t either.  We owe a duty to our members and customers to ensure best cover at the best price, so we can’t simply choose cover at any cost.”

The Law Society has asked CFS to reverse the decision.

President Robert Heslett said in a letter to the organisation: “”I was shocked and saddened that such a step should be taken in the depths of the most severe recession since World War II.

“The implications for the 3,600 businesses and the people employed by those businesses are stark, to say the least, and could have a knock-on effect on access to justice if any are forced to close as a result.

“It is particularly disappointing that this decision should come from organisations with the reputation and standing of the Britannia Building Society and the Co-operative movement, who understandably make much of their long-standing commitment both to the mutual ideal and the communities they serve.”