HSBC claims 99% of cases go through without a hitch.

HSBC claims 99% of cases go through without a hitch.

Up until now the criticism of HSBC’s decision to use only one of 43 firms to act for itself in conveyancing transactions have been held outside of the glare of the consumer media.

Trade organisations and media have been debating the pro’s and con’s of the decision since the launch in January but over the weekend there was a significant shift in media attention on this subject.

On Saturday conveyancers who listen to the BBC Money Box program were able to hear HSBC trying to defend themselves from allegations by consumers that the new process had caused their conveyancing transactions to be more stressful and expensive than they needed to have been.

Eleanor, a consumer interviewed for the BBC said, “The whole process has just been a complete nightmare.  The main concern, which hopefully won’t happen now was that we were going to miss the stamp duty deadline” before going on to explain how documents had been lost by the HSBC solicitor and information had been repeatedly requested.

Tony, another consumer explained how, in what seems to be a matrimonial transfer, he had been asked to pay for an environmental search that he believed was of no benefit to him as he already lived in the house.

Both cases seemed damaging to the image that HSBC enjoys for excellent consumer service, but to be fair to HSBC there was insufficient information to verify the exact organisation that was to blame for these perceived poor service issues.

I am aware of cases where the actions of the HSBC panel are difficult to justify but also where conveyancers who are not on the panel are gunning vindictively for HSBC and Countrywide by blaming them for every delay in a chain irrespective of the true cause.

I also feel that this new media interest is just the tip of the iceberg.  The budget has happened and financial journalists are looking for the next story.  Some are actively seeking case studies to use in future articles.

Martin Van De Heijden, Head of Lending at HSBC, seemed to be badly briefed.  Some of his comments will neither have reassured the public, nor dampened down the high feelings that many conveyancers feel about HSBC right now.

Firstly he stated that;

“Any complaint is one too many. I have looked at our data clearly in preparation for this and over 99% of our cases since we set up have gone through without a hitch.  Still, if we are doing anything wrong we would like to put it right but the vast majority are going through correctly.”

HSBC are known the world over for their attention to detail and customer service so I know he means it when he says any complaints are unacceptable and that HSBC have a culture to get it right.  So that raises the question why is he not hearing the noise of complaints that are now common about issues associated with this process?  Most conveyancers acting for purchasers where HSBC is separately represented have had multiple issues that have caused delay.

If 99% of cases since the start of this process are going through without a hitch why has HSBC amended the undertaking they require from the purchaser’s conveyancer at least three times?

Secondly he said;

““There is less work to do” in reference to work for the purchaser’s conveyancer.

Maybe Martin should go and visit a conveyancing practice and compare the work required on an HSBC case and when acting for the purchaser with the workload required on any of the other top 5 lenders when acting for both purchaser and lender.  Whilst in theory or on paper it can be argued there is less work the practical reality is somewhat different.  It isn’t only the workload he should consider it is the practicalities of trying to get a decision made at a time critical point by a third party.

Desmond Hudson the Chief Executive of the Law Society promoted the CQS and indicated another lender is about to adopt the scheme.

Do let us know your views.

 

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