The Halifax has become the first major bank to enter the legal services market with the launch of Halifax Legal Solutions last week.

The bank, which has two million customers and a relationship with two out of every five households in Britain, will offer 'everyday legal products' to customers at what it claims will be considerably lower fees than those offered by high street solicitors.


The service - which had already attracted more than 100 customers in the few days since the launch - will include discounted conveyancing, will preparation, and a 24-hour legal helpline. It will also provide access to a Web site where customers can prepare their own documents, including tenancy agreements, powers of attorney, and letters of complaint about faulty goods. These will then be reviewed by qualified lawyers.


Conveyancing will be provided by HammondsDirect, which is also a member of the Halifax's fixed-fee conveyancing law firm panel launched last year - used by more than 50,000 customers so far. FirstAssist will provide telephone support and review documents through a team of more than 50 solicitors, barristers, and legal executives.


Customers will pay an annual membership fee of £89 for the service, and will then receive free access to the helpline. Members will be charged £389 for conveyancing fees on a house worth between £250,000 and £500,000, less than half the £850 fee that the bank claims high street solicitors typically charge.


Head of Halifax Legal Solutions Joel Ripley told the Gazette: 'The Co-op and the AA have already launched legal services, but we are the first financial institution to do so... as this market gets more competitive, it is something that high street solicitors are going to have to get used to. But our approach to this market has been a partnership approach, working with qualified solicitors rather than trying to muscle them out.'


Mr Ripley added that the Halifax, which is part of the HBOS group, has 'no plans to buy a law firm' when the Legal Services Bill - which will permit outside ownership of law firms - comes into force, probably in 2008.


Law Society chief executive Desmond Hudson said that face-to-face advice from a solicitor was needed in complex cases, warning that non-qualified advisers can lead to 'woeful service and dreadful advice'. He added: 'Legal advisers working for banks, building societies and supermarkets who are not solicitors may be more interested in selling their company's financial services products.'


A Halifax spokesman said that all legal advice would be given by qualified professionals from established legal services providers. He added that the service was 'ring-fenced' and would not be used to sell other financial products.