I read with interest Jon Robins’s article ‘Under Pressure’ (see [2008] Gazette, 20 November, 14). It is unfortunate only one bank appears to have been approached for an attributable quote. A more rigorous process of engaging with banks to establish their views would have allowed a more balanced assessment. No evidence was presented of the tougher credit rules alluded to and only one commentator offered a supporting opinion.

Lloyds TSB is committed to the British Bankers Association’s Statement of Principles that were agreed with the government. These principles ensure that transparency exists in our dealings with all borrowing customers when they are facing difficulties. Customers across a variety of business sectors may experience some challenges in the coming months and we are determined to support viable businesses through difficult times.

Our lending policy is designed to be robust throughout the economic cycle and we value our relationships with our solicitor-customers. The only change we have made to our Credit Policy for the profession this year was to increase the loan-to-value we are prepared to consider for the purchase of practice property.

We certainly do not share the bleak view presented by Tony Williams of Jomati, on two counts. First, the ‘massive squeezing of credit’ that he refers to is simply not true in our business. As our chief executive pointed out last week, our lending to SMEs is up 18% on last year. We are seeing solicitors making greater use of overdraft facilities – quite the opposite of the restriction suggested in the article.

Second, we recognise the solicitors profession as one that is characterised by high levels of integrity and we certainly do not subscribe to Williams’s alarmist view that widespread fraud against clients is likely to be perpetrated by solicitors in the next couple of years.

We recognise that changing economic conditions and, in particular, the dramatic fall in conveyancing activity may cause difficulties for some firms. Next month a delegation from the bank will meet Law Society President Paul Marsh and chief executive Des Hudson to explore concerns that members are raising with their representative body.

The banking market remains highly competitive and solicitors who feel they are not receiving the support they need should shop around. They should also maintain regular dialogue with their bankers and other advisers to make sure they are planning for the future rather than waiting for it to happen to them.

Chris Marston, Head of Solicitors’ Banking, Lloyds TSB Commercial

  • Editor’s note: a number of high street banks approached by Jon Robins for this feature declined to comment