Warning - do not use wolstenholmes solicitors

Horrified_Solicitor

mjmal51 wrote: »

I do hope so! Also I wonder who watches the watchers, as it really does seem that the SRA were incredibly slow on the uptake for WH, having received numerous warning signs.

The new supremo for overseeing the SRA is a very nice and obviously able chap. However, his background is in charity administration and I feel that these jobs need the instincts of a policeman. All too often the authorities remind me of a kindly bishop completely flummuxed as to what to do with all the complaints about Father O'Leary and boys.

Historically, they're geared up to catching sole practitioners who have helped themselves to some of the client account to pay the school fees, and are ill equipped to deal with ruthless and determined rule breakers and fraudsters. It took them long enough to get to grips with the miners compensation rip off brigade, and I think they are out of their depth when it comes to those using a firm of solicitors as an instrument of fraud.

Catwoman8950

anotherproblem wrote: »

Hi - Thanks for that info. I just phoned DWF and told them and they said that all the files were removed at the intervention. However they will check it out ASAP to see if they have been left there since. Perhaps at a different point some one close by will have another look and see if they are still there.

Yes, I did think it was rather odd that what looked like client files were still in the WH office. It *is* possible that someone has put them there after the SRA intervention and DWF should investigate. Unfortunately I can't do anything more about it as I'm back home now (not in U.K.) and I don't think I should ask my estate agent to spy for me. I feel that would be too much of an imposition. While I was with my estate agent two guys came in looking for WH so there are still people who don't know what happened there some 4 weeks after the intervention.

TRACIE-X_2

Hi sorry I haven't been on but thought I'd update we are supposed to be completing our sale tomorrow and purchase on Friday but sra still haven't agreed what monies they will be sending over!!!!! The total of everybodies claim up and down the chain total to £16,000!!!!!!! Yes you read right that's £16,000 that I've got to pay and claim back through the lcs as it seems sra will not be paying it out of the emergency compensation fund even though this money is required to complete sale and purchase!!!!!! I will keep you updated as soon as I know what's happenng should hear or should I say I'd better hear in morning for sale to complete tomorrow!!! I've now definatly had enough it's been nearly 2 months of hell!!!!!

Tracie

Brahan_seer_3

Horrified_Solicitor wrote: »

This is very interesting, and I'm certainly surprised that anyone who has worked for Wolstenholmes has managed to get a job doing anything other than flipping burgers. The legal profession tends to be very wary of those who have worked for firms where dishonesty is suspected on a grand scale, for the reason that even if the employee is not himself dishonest, he will have been used to poor work and dodgy practices.

However, from what has happened at WH, it is possible to work out how a churn and burn scam can be worked using a solicitors firm. It needs the following ingredients:

1. Some very dishonest people to back it all. Preferably non solicitors so they are off the radar and can quietly disappear once it all blows up.

2. Plenty of money to get it running.

3. Internet and marketing expertise to expand it very rapidly.

4. A firm of solicitors as the front. This needs to have the following characteristics:

(a) Easily bought - a two man High Street conveyancing practice with partners who want to retire would be ideal as it would be cheap and usually have a good insurance and disciplinary history. You need to get the existing management out and your people in.

(b) Apparent respectability so you can act for lots of lenders before they realise what's going on.

(c) Some naive/dishonest solicitors to front it. They're going to be carrying the can, so it's important to find someone young and greedy who can be conned into thinking that the kind backers are going to make him rich. Ideally, they need to be rushing around doing lots of work and not looking into how the kind backers are running the business side.

My hope is that the SRA have worked this out for themselves and are keeping watch on activities.

It almost sounds like the plot of a John Grisham book. It could certainly be the subject of an engrossing TV documentary.

Brahan_seer_3

If the LCS makes an award against Wolstenholmes and neither they nor their insurers pay out what would be the prospect of suing the SRA for failing to regulate Wolstenholmes properly bearing in mind that the SRA had alread visited them once without closing them down? Any thoughts from Horrified Solicitor or any other solicitors following this thread?

Horrified_Solicitor

Brahan_seer wrote: »

If the LCS makes an award against Wolstenholmes and neither they nor their insurers pay out what would be the prospect of suing the SRA for failing to regulate Wolstenholmes properly bearing in mind that the SRA had alread visited them once without closing them down? Any thoughts from Horrified Solicitor or any other solicitors following this thread?

The same question had occurred to me. For an action to succeed, a claimant would have to show that the SRA had a duty of care towards him or her, that there was a breach of that duty of care and the claimant had suffered loss.

If you look at the SRA website you will see that it seems to accept that it has a duty to protect the public.

It will be difficult to show a breach of that duty, but I've been hearing a lot of anecdotal evidence from a variety of sources that the SRA knew there were problems with WH a long time ago. If someone pulled this together then I reckon they'd be in with a chance.

However, it is unlikely that any clients will be left out of pocket as a result of the WH debacle because of the comprehensive nature of the insurance and compensation. Basically, the compensation scheme covers client's money that has gone missing and insurance covers negligence. The standard type of negligence insurance is designed so that insurers have to pay out even if the solicitors have lied to them to get insurance. An obvious lie would be to massively understate the amount of conveyancing. If it is less than 40% of turnover, then insurance is cheaper. Generally, at any one time there are about fifteen insurers covering solicitors. Most are massive (we're with AIG) and even if hit with a lot of claims they tend to grit their teeth and pay out.

However, I've not seen who WH are insured with. A previous query met with the address of what looked to be a broker. There is a risk that if they're with one of the lesser insurers, which is not really committed to legal professional indemnity (some of them dabble for a year or so and pull out) they may look for imaginative ways of refusing to pay out. One avenue would be to say that they relied on the SRA for effective regulation and the SRA didn't catch WH early enough.

mjmal51

Horrified_Solicitor wrote: »

However, it is extremely unlikely that any clients will be left out of pocket as a result of the WH debacle because of the comprehensive nature of the insurance and compensation.

Have not yet seen many instances on this forum of payouts so far, perhaps 2 or 3? I know I am being impatient but I have had to find £11,000 to get post completion work done, and this does not include the new solicitor's fee. The SRA received my claim 2 weeks ago and have yet to appoint an investigator.
So will be interested to see any new postings of money received, even if just to give me hope!

jazzyA

I would just like to give you some hope. I discovered that WH did not pay off my mortgage after completing in Dec. We were due to buy a new home but could not receive new mortgage until the old one was paid. I discovered this on 5th Jan and applied a week later to the Compensation Fund and I successfully received this money last Friday and my mortgage has been paid. We have also exchanged on our new house and move tomorrow!
I have been following this forum for a month now and it has been a real life line. It really has been the month from hell but I'm now very happy to come out the other side, although I still have further claims to submit to the SRA.
Good luck everyone.

Catwoman8950

mjmal51 wrote: »

Have not yet seen many instances on this forum of payouts so far, perhaps 2 or 3? I know I am being impatient but I have had to find £11,000 to get post completion work done, and this does not include the new solicitor's fee. The SRA received my claim 2 weeks ago and have yet to appoint an investigator.
So will be interested to see any new postings of money received, even if just to give me hope!

I don't understand why payouts have been so slow and people left out of pocket like this. The SRA is reported to have made 3 million pounds available to help people.

bear.1973

Hello,

Really fed up now, have just spent a good 40 mins typing out a post for help, and it didnt send for whatever reason, also wiped off the post,,ARRRGGG.

So gonna keep it short, any help greatly appreciated.
Is it best to let morgtate lender appoint their solicitor, (recieved list of charges, which i previously typed out) or use a local solicitor?

Briefly then. I purchased house oct 09 using WH, they havent registered me a legal owner on LR. New sol wants to request files and finsh off work.

Would i be better off requestign the files to myself and going into a solicitors office or just letting mortgage lenders sol deal with it?

I dont want to be hit with another bill that could possibly be avoided. Or could it be substancially less, if i carry some of the work out myself, i.e, request files etc.

Please advise if poss.
am fed up with it all! : (