Warning - do not use wolstenholmes solicitors
Comments
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Basically the way it works is that the Compensation Fund will pay for missing or frozen money. This does not cover all the losses though and it may be possible to claim on the Wolstenholmes professional neglicence policy if there has been negligence involved in the way the work was done. Does anyone one know who they are insured with?
It amazes me that they were able to get insurance at all, as their business model would be regarded as very high risk by insurers.0 -
It amazes me that they were able to get insurance at all, as their business model would be regarded as very high risk by insurers.
Did they actually have insurance?
Where did the missing Stamp Duty money go?
Do the SRA/LCS have enough funds to meet all the liabilities?0 -
Trollfever wrote: »Did they actually have insurance?
Where did the missing Stamp Duty money go?
Do the SRA/LCS have enough funds to meet all the liabilities?
If WH couldn't get insurance on the normal insurance market by 1st October 2009, which is the start of the insurance year for all solicitors, they would have to go into the Assigned Risks Pool, which is a sort of insurer of last event for solicitors. The premiums are horrendous and it is underwritten by all the insurers who have to pay a levy to fund it. Needless to say, those in it often don't pay the new premiums because they can't afford it/wish to spend the money on a new Bentley instead, and they carry on with the sort of activities that made them uninsurable in the first place.
The SRA will have enough funds to meet all the liabilities for two reasons:-
1. They have been building up funds for this eventuality, as historically the claims go up in a property recession.
(Sage analysts will wonder why more effort didn't go into closing some of the more egregious cowboy operations earlier, but that is a separate issue)
2. Any shortfall can be made up by further levies on the entire profession.
This of course explains why honest solicitors detest the cowboys - they give us all a bad name and to injury to insult, we have to pay for their activities.0 -
Horrified_Solicitor wrote: »If WH couldn't get insurance on the normal insurance market by 1st October 2009, which is the start of the insurance year for all solicitors, they would have to go into the Assigned Risks Pool, which is a sort of insurer of last event for solicitors. The premiums are horrendous and it is underwritten by all the insurers who have to pay a levy to fund it. Needless to say, those in it often don't pay the new premiums because they can't afford it/wish to spend the money on a new Bentley instead, and they carry on with the sort of activities that made them uninsurable in the first place.
The SRA will have enough funds to meet all the liabilities for two reasons:-
1. They have been building up funds for this eventuality, as historically the claims go up in a property recession.
(Sage analysts will wonder why more effort didn't go into closing some of the more egregious cowboy operations earlier, but that is a separate issue)
2. Any shortfall can be made up by further levies on the entire profession.
This of course explains why honest solicitors detest the cowboys - they give us all a bad name and to injury to insult, we have to pay for their activities.
My understanding is that they did have insurance but I do not know with whom. Except for any negligence cases I sincerely hope that the frozen client account will produce enough to pay for SDLT, registration fees deposits and the like although I expect it will be a monumental task to reconcile their client and office accounts as their Accounts department was something of a joke - again as with the Conveyancing department they were under -resourced. Hopefully the profession as a whole will not have to pay out too much. Hopefully some of the money that has been paid up front to DWF can be clawed back. Hopefully other solicitors (including DWF) will not milk the situation. An awful lot of hopefullys!!!!0 -
Like a lot of people I am affected by WS Closure. The property went through ok on 30th November - however my file which has been found has only the information and completed documents that I signed. The sellers on the other hand have had their money - their mortgage has been paid. Although I went out of my way to help the sellors (I even let them remain in the property free of charge for 7 weeks following completion) when I asked for a copy of the indemnity insurence and any other documents they are in possession of they kept saying that they would e mail them and did not. Now they are on a plane to New Zealand as they are emigrating. And I am left with a property that will be difficult to register in my name. They used WS as well as myself. They used the birmingham office. I have made so many phone calls to try to track down their file which has dissapeared. Bully for them its the last time I help anyone. SO to all those who are getting together duplicate files well I wish I could but with no sellors to re sign, no soliciters on the other side, and no files to be found. I am stuck with the keys to a property that cant even be registered in my name.0
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Aslo my soliciter SB at WS was brilliant had the SRA left things as they were everything would be sorted by now. SB where are you!!!!!!!!0
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Hi everybody, just an update abbey have agreed to release mortgage monies and are sending through a new mortgage offer but we are still held up by the insurance issue on our burst pipes. Can't get an assessor out till next thur 28th!!!! Looks like they do nothing urgently either so I'm waiting for a quote to come through for the damage so maybe we can move forward from there. I'll keep you up to date. Tracie0
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Brahan_seer wrote: »My understanding is that they did have insurance but I do not know with whom. Except for any negligence cases I sincerely hope that the frozen client account will produce enough to pay for SDLT, registration fees deposits and the like although I expect it will be a monumental task to reconcile their client and office accounts as their Accounts department was something of a joke - again as with the Conveyancing department they were under -resourced. Hopefully the profession as a whole will not have to pay out too much. Hopefully some of the money that has been paid up front to DWF can be clawed back. Hopefully other solicitors (including DWF) will not milk the situation. An awful lot of hopefullys!!!!
Do you know which firm of accountants prepared the accounts and SRA returns for Wolstenholmes. Did any of partners family members work at the practice apart from Mrs Ilyas?0 -
Any claims against the "professional" indemnity insurance will be dealt with by the SRA and DWF (as the appointed intervening Solicitors), not made by the customers who have suffered.Horrified_Solicitor wrote: »Basically the way it works is that the Compensation Fund will pay for missing or frozen money. This does not cover all the losses though and it may be possible to claim on the Wolstenholmes professional neglicence policy if there has been negligence involved in the way the work was done. Does anyone one know who they are insured with?
It amazes me that they were able to get insurance at all, as their business model would be regarded as very high risk by insurers.
Claims should be lodged with the Compensation Fund and LCS (where asking for compensation) and the SRA with DWF will build up relevant accounts of the amount needed to be paid out.
Whatever is not covered by the balance of the WH's bank accounts will be temporarily covered by the SRA Compensation Fund, who together with DWF and whoever they retain will seek to recover as much as possible from the "professional" indemnity insurance policy (or ARP if they were covered by that instead of PII) and possibly through criminal or civil proceedings against those involved in WH.0 -
Hi everybody, just an update abbey have agreed to release mortgage monies and are sending through a new mortgage offer but we are still held up by the insurance issue on our burst pipes. Can't get an assessor out till next thur 28th!!!! Looks like they do nothing urgently either so I'm waiting for a quote to come through for the damage so maybe we can move forward from there. I'll keep you up to date. Tracie
Tracie, Having heard nothing from you for a few days I thought you were long moved in and enjoying your new home... Has your monies (deposit and Abbey's money) been returned to you yet?0
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