A Hertfordshire firm that was removed from the Santander and Lloyds Banking Group conveyancing panels is seeking support to take legal action against the lenders, the Gazette has learned.

Paul Judkins, a partner at Judkins, with offices in Hertford and Cheshunt, is seeking advice from counsel on whether a legal challenge can be pursued in relation to being removed from the panel, and the subsequent loss of work.

The firm wants to hear from others in a similar position that want to join any action.

Judkins, a two-partner firm, was removed from the Santander and Lloyds panels, but has been reinstated to the Lloyds panel.

Judkins said the removal policies of the two lenders is ‘shrouded in secrecy’, and questioned their motivation, speculating that it could be a ‘backdoor method and a first step’ to lenders entering the conveyancing market.

‘Whatever the reason, it is a gross interference with competition law and not in the best interests of clients,’ he said, adding that it erodes consumers’ freedom to choose a solicitor.

‘The longer the present actions of Lloyds and Santander go unchallenged, the harder it is going to be for small firms to get back into the conveyancing market,’ said Judkins.

A spokesman for Santander said he could not comment on that case, but added that over the last year Santander had removed firms that had undertaken low volumes of transactions. He said the move was designed to improve efficiency and allow Santander to provide better service to its customers through its legal partners.

The spokesman said panel membership is under constant review, and any firms that want to challenge their removal can appeal.

A spokeswoman for Lloyds said firms received a letter clearly stating the reason for their removal, and the group has a full appeals process, with legitimate appeals reviewed by senior management.

Law Society property spokesman Paul Marsh said: ‘At a very early stage we looked carefully and took advice on whether there was any possibility of proceedings being taken, and we determined that there was not.

‘We continue to have a full dialogue with the Council of Mortgage Lenders and individual lenders, and we hope our new conveyancing quality scheme, to be launched later this month, will address many of their concerns,’ he said.