Q - Why use Account and Entity Screen?
A - The Account & Entity Screen has been developed in the wake of growing concern about vendor conveyancer fraud. With lenders tightening panels, fraud has moved along the line in a conveyancing transaction and criminals are stealing identities of real firms, or setting up their own fake firm in order to dupe you into sending money to them. Account & Entity Screen provides you with enhanced risk management in fund transmission.
The SRA issued 22 alerts relating to identity theft in 2012, rising to 102 in 2013 and an unprecedented 187 in 2014.The trend continued throughout 2015, with 183 scam alerts. In the first 6 months of 2016 over 100 alerts have been issued already.
The FCA believes there are 1400 organised crime gangs trying to steal mortgage funds at any given time and they can use the brand of a solicitors/conveyancers firm that is well known to gain an extra badge of legitimacy.
Cases such as Lloyds TSB v Markandan, Purrunsing v A’Court & Co and House Owners Conveyancers Limited & Uddin and Nationwide v Davisons have found solicitors to be in breach of trust.
More recently not using Lawyer Checker has been used in a Letter of Claim to suggest that a conveyancer who has sent funds to a fraudster is negligent.
Vendor Conveyancer Fraud is a real threat to your business, your brand and your clients. Checking the Find a Solicitor list is no longer enough.
Q - How much does Account & Entity Screen cost and how do I pay?
A - The price is £18 +VAT, this can be charged as a disbursement. All payments for Lawyer Checker searches are taken by direct debit which is set up on registration of your account. We invoice at the start of the month for any searches carried out in the previous month. From 1st September 2018, a Minimum Usage Policy was introduced for all Lawyer Checker account holders which is £20 + VAT for months where less than this amount is charged in searches. More information on this policy can be found in our Terms and Conditions.
Q - When in the transaction should I perform a search using Account & Entity Screen?
A - We recommend that you carry out the search when you get Requisitions on Title and before Exchange of Contracts. There is also an option to update the search for free, immediately before completion by clicking on ‘Search Update’ in the Account section of the website. You can then find the search you want to update and click ‘Perform Update’. The result will be emailed to you in the same timescale as with initial results.
Q - What details do I need to perform a search on Account & Entity Screen?
A - All you need is the client account details of the firm you are sending money to and their name and postcode. You will also need to enter some details about the case concerned.
Q - How long does it take to receive my result when using Account & Entity screen?
A - Using the Account and Entity Screen service, you will receive a result immediately with the check of the account against our database. If the result is Infrequent or Unknown, we will send you a further research email within 4 working hours. If you are concerned about the length of time it will take to carry out searches, we have the option for you to integrate your case management system directly to our system. Please contact us and we will send you over the integration pack.
Q - What does my result mean?
A - Using the Account and Entity Screen service, you will immediately receive an email with the result of your check against the database.
If the result is Infrequent or Unknown, you will receive a further email within 4 working hours that has further research into the entity carried out by our team.
There are three possible search results within the LC system:
Frequent
Frequent is the best possible result within LC. It means that we have a good track record of that account being used in conveyancing transactions, we've known it for a long period of time, we've seen it recently, we've also seen different conveyancers search against it, and we've got a consistent track record reflecting that. (Note: if a firm has become frequent and then is not searched against for a period of time it may revert back to infrequent – however it can never go back to being an unknown result).
Infrequent
The next level down, Infrequent means that on the one hand we have seen those account details being used before so we do have a track record but we perhaps haven't been able to pass all of the checks to deem it a frequent response. This could be because we haven't known that firm for a long period, it could be a new firm, it could be merged firm, or it could be that they've changed their details relatively recently. This could also suggest a dormant account, or perhaps we don't have a consistent track record. With this result, then, there's something that we think you need to look into as well, so we see that as a potential risk.
Unknown
The next result down, Unknown, means exactly that. It means we don't recognise those account details - they are unknown to the LC database. What it could mean though is that there is a very simple mistake in the account details provided (typo). It could also be that the firm has recently changed its bank account details and so for those reasons, whether it be untoward activity or a simple mistake or change of details we do think you need to look into it more by contacting the COLP (Compliance Officer for Legal Practices) or COFA (Compliance Officer for Finance and Administration) of the firm being searched against.
We provide an immediate response informing you what the result is, sent to you as a PDF in an email with the most recent dates searched against and also available within your Lawyer Checker account. With unknown and infrequent results, included in the price of the search, we then provide further research within 4 working hours. This consists of our industry experienced in-house search team performing various database and website checks regarding the firm and account details searched against.
Q - "Why is my result Unknown? What can I do next?"
A - An Unknown Result means that we do not recognise the account details entered and they are Unknown to the Lawyer Checker database.
An Unknown result means that we do not recognise those account details and they are unknown to the LC database. It could mean is that there is a very simple typographical error in the account details provided. It could also be that the firm has recently changed its bank account details and so for those reasons, whether it be untoward activity or a simple mistake or change of details, we strongly advise that you investigate further by contacting the COLP (Compliance Officer for Legal Practices) or COFA (Compliance Officer for Finance and Administration) of the firm being searched against.
Please be advised that Lawyer Checker results are based upon the frequency that the account details are searched within our database.
We do not verify account details, but we provide a result on the frequency of the account details searched to show the track record of those details used in conveyancing transactions.
You can get one of 3 results: Frequent, Infrequent or Unknown.
Every Lawyer Checker report will state the below:
- “A [Result] Response is not a statement by Lawyer Checker that this bank account remains valid and safe. Information provided by Lawyer Checker should be used in conjunction with other information on file to consider whether it is appropriate to transfer money to that account.”
As such, a Result must be referred for further consideration as part of a decision making process whether to further investigate the bank account and whether to transfer the money or not.
Q - What should I do with the results from Account & Entity Screen?
A - Any response sent by Lawyer Checker is not a statement by Lawyer Checker that this bank account is safe, suspicious, invalid or unsafe.
Information provided by Lawyer Checker should be used in conjunction with other information on file to consider whether it is appropriate to transfer money to that account.
Approximately 85% of results will come back as Frequent therefore if a result is Infrequent or Unknown, it may present a potential risk and we suggest that you seek to satisfy yourself that you are comfortable with sending money to this account.
Consider all the information we have provided to you in conjunction with other information you have on file. There may be a legitimate reason why the account has presented a potential risk, such as incorrect details, or it may require further investigation.
If you feel that the information you have still presents a risk; we suggest that you pick up the phone to the COLP/COFA at that firm and ask them to confirm their bank details.
If you are still not comfortable sending money to the other side, you may wish to consider discussing the risk with your clients and discharging the mortgage directly or aborting the transaction.
Q - "Can we search against a Scottish firm?"
A- Unfortunately, we are unable to conduct searches against firms outside England and Wales because our Account and Entity Screen product is only designed for law firms within the jurisdiction of England and Wales.
However, if the head office of the firm is based in Scotland, but the branch searched is in England or Wales, then we can conduct the search.
Q - “I have received an Infrequent/Unknown result but I am completing today. Please can the further research be expedited?
A - Unfortunately, we cannot expedite searches. Your search is within the queue and it will be returned to you within 4 hours of submission.
Please note that we strongly advise that searches are not conducted on the day of completion as we are unable to expedite a search under any circumstances.
Q - What are Update Searches?
A - As well as the Initial search that you carry out when you get Requisitions on Title, included in the price is the option to update this search before completion. This allows for additional peace of mind that nothing has changed since your first search.
In order to carry out the update search, please click on ‘Search Update’ in the Account section of the website. You can then find the search you want to update and click ‘Perform Update’.
A - Does the service cover Licenced Conveyancers?
A - Yes, the service covers all entities that perform residential conveyancing. This can include building firms and councils.
Q - "I have entered the wrong account details."
A - If you have entered the wrong account details in your search, please contact us as soon as possible via email or telephone at [number] and [support email]. If you have contacted us prior to the further research being submitted, we will be able to set the erroneous search to free in order so that there is no charge for the search.
You will then be able to submit a second search with the correct details as normal.
Q - "I have entered the wrong postcode. Can my search be cancelled?"
A - The postcode entered in your submission does not affect the result you receive; therefore we are unable to cancel the search or set this to free.
Results are based upon the frequency that the account details are searched within our database.
Q - "I have entered the wrong name. Can my search be cancelled?"
A- The name entered in your submission does not affect the result you receive; therefore we are unable to cancel the search or set this to free.
Results are based upon the frequency that the account details are searched within our database.
Q - "I have put a search through but the result is still ‘Pending’”
A - Please be advised that in some cases, your result may display as Pending for a short amount of time as our team need to complete some additional checks before we can release the search.
Q - "I have put through a search once but it has gone through twice. Will I be charged twice?"
A - If you notice that your search has duplicated, please contact us via telephone or email [phone number] and [email] and we will set the duplicate search to free in order so that you do not incur a second charge.