Lawyers Bill Could Result In Increased Legal Fees

New Zealand First justice spokesperson Dail Jones is warning of increased costs to lawyers’ clients if the Lawyers and Conveyancers Bill is passed in its present form.

Mr Jones was referring to the alteration in the Bill to clause 276 (5) which reduces from 45% to 40% the amount which a bank is entitled to retain for its own use on interest payable on nominated trust accounts.

He has evidence which indicates that the banking system would make a loss of $152,395.00 per annum if this amendment was continued and will be lodging an amendment to restore the Bill to its former position. He will also seek support from other parties.

“The effect of the banks making a loss on this operation will mean that the banks will have to charge law firms for running these trust accounts and needless to say law firms will pass this fee on to their clients as another bureau charge,” said Mr Jones.

“The development of a bureau charge by law firms has caused considerable concern to their clients over the years and no further opportunity should be given to lawyers to increase bureau charges.

“This Bill is another example of the Labour Government’s total disregard of legal costs payable by purchasers of new homes and those struggling to pay legal fees generally,” concluded Mr Jones.

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