Clients affected by the abrupt closure of PM Law Group have gone public with sad stories of last-minute house sale collapses and their struggles to recover documentation.
A group of more than 400 people have joined a Facebook group to share their experiences and suggest solutions.
One of the biggest issues appears to be that the network of offices was closed with seemingly no plan for how files would be transferred and clients contacted. Staff have said they were unable to access IT systems, even to inform clients the business had shut down.
The Solicitors Regulation Authority intervened into PM Law and a number of its group firms on Wednesday. Coordinating an intervention across more than 20 offices in different parts of the country is a logistical challenge, but disgruntled clients have asked why the regulator did not move more swiftly.
Members of the group have reported that their money is sitting in the PM Law client account after they switched lenders following the remortgage of their home. Others have exchanged contracts on property purchases and placed a deposit with one of the firm’s subsidiaries, with no further information about when they will be able to get back the money. Staff have no access to the client account and until there is an intervention, neither will any SRA-appointed agent.
There are further reports of beneficiaries waiting to receive funds from estates, and of people unsure who is holding on to their wills.
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Clients have also reported not being aware that the local firm they used for a will had been acquired by a larger group. Firms included in the PM Law group are Proddow Mackay, PM Property Lawyers, GN Law, Gains & Wilkinson, John M Lewis & Co, Valerie Holmes Law, Angela Viney, DJ Mackey & Partners, Lexelle, OSOI Global, Barrett and Co, Butterworths and WP Pennine.
Various other firms have sought to offer support, advice and assistance to clients stuck in limbo. Yorkshire firm Ison Harrison posted on its website that affected clients should gather any documents, emails, or correspondence, make a note of any key deadlines or upcoming dates, and speak to an independent solicitor as soon as possible for guidance.
Another Yorkshire firm, Switalskis, has created a freephone helpline for anyone requiring assistance with their file.
Meanwhile, staff who were told on Monday they were being made redundant have thanked the legal profession for offering help and support. News about the closure of PM Law prompted a surge of messages on Linkedin sending links to job vacancies and firms looking to recruit staff.
Lindsey Gaimster, president of the Sheffield & District Law Society, said it was ‘deeply concerned’ by the closure of PM Law and was monitoring the situation closely. She added: ‘In the meantime, we have been heartened to see the Sheffield legal community come together to offer comfort and support to those who have suddenly and unexpectedly lost their roles. We commend the professionalism and solidarity shown during what is clearly a difficult time for many.’
However, legal recruitment specialist Tom Wagstaffe warned those seeking another job to be cautious about jumping too quickly.
‘My message to all those out on a limb from PM Law is a simple one: do not go from the frying pan into the fire,’ he said. 'I have now seen several conveyancing-heavy firms go down the pipe when really, they shouldn’t. And when this happens, a competitor firm will start lapping up the casualties and get them fee-earning while they gleefully rub their hands at the increased revenue.
‘Please beware. If the firm offering you a life preserver is functioning on the same business model as the one you’ve come from (low cost, high volume), then maybe it isn’t a smart move.’
