Council of Mortgage Lenders "concerned about fraud amongst Legal Professionals"

17/03/2010

Written by Marc Riches

The Council of Mortgage Lenders (CML) is currently requesting a comprehensive overview of the regulation of solicitors, leading it to oppose reform suggestions from the Solicitors Regulation Authority.

The CML claims that lenders and property buyers are reliant on the advice of solicitors, who provide an essential service in the buying process.

However, it has announced it is concerned by the amount of fraud reported which involves such legal professionals, along with an emerging scale of professional negligence.

As a result, the group is calling for a comprehensive overview to ensure the industry is thoroughly regulated, while more intrusion of the sector may also be important.

"Lenders must be confident that firms have adequate professional indemnity insurance and that there is a reliable compensation fund for commercial clients who suffer loss as a result of fraudulent behaviour," it claimed.

PI insurance may be a priority purchase for solicitors, as this could cover them in the event that a client seeks legal action against them should their advice have caused them to lose out in some way.


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