SRA silent over ‘fake’ bank law firm probe
Regulator makes no comment on letter-writing practice despite stern warning in july.
The Solicitors Regulation Authority has received complaints about individual in-house solicitors accused of involvement in sending letters purporting to be from independent law firms, as more banks admitted adopting the practice.
The regulator declined to say whether it will investigate, despite warning in July that in-house solicitors misleading customers in this way would breach the Code of Conduct.
Questions have been raised about the role of in-house legal teams in creating the letters since the Gazette revealed in June that Lloyds Bank had sent letters to indebted customers under the name ‘SCM Solicitors’ – which turned out to be an in-house firm.
The practice of sending letters purportedly from a firm of solicitors came to light earlier this year when payday lender Wonga agreed to pay compensation to recipients of the letters.
Andrew Tyrie MP, chairman of the committee, said the letters seem to have been designed to ‘pull the wool over consumers’ eyes’.
He added: ‘From these responses it seems that this practice was widespread. Banks say that they have now stopped sending such correspondence but it should never have happened.’
Source: lawgazetteuk
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