The Legal Complaints Service (LCS) recently closed a loophole that prevented clients complaining about the handling of their remortgage. Previously, consumers were unable to complain about poor service, or lengthy transactions, as solicitors acting on fees-free cases were only accountable to the lenders. Under a new agreement with the Financial Ombudsman Service (FOS), the LCS will now redirect these complaints to the FOS, who will able to act, regardless of these accountability issues.
Eddie Goldsmith, senior partner at Goldsmith Williams, commented: “It has been commonplace for some time for lenders to offer solicitors’ services free of charge to remortgage customers under ‘fees-free’ products. However, it is fair to say that this service has been patchy and inconsistent, evidenced by recent letters in the press. Therefore, it would not surprise me if lenders, anxious about their reputation, reviewed this offering.
“Armed with the new powers of redress, clients can now hold solicitors and lenders to account. In an already uncertain climate, lenders should ask themselves what the true cost of free legals could be.”
