The new group set up by Staffordshire lender Britannia and Co-operative has been criticised for dropping 3,600 solicitors from its conveyancing panel.
The Law Society has asked the newly-merged lender to reverse its decision to serve notice on the solicitors, claiming it could impact businesses and have a knock-on effect to the justice system as a whole.
It said the decision was motivated by an inability to secure cover from the insurance market for any losses suffered from the activities of those commissioned to carry out work.
In a letter to the building society, Law Society president Robert Heslett said: “Whilst I understand the need for you to exercise prudential management of your risks, I was shocked and saddened that such a step should be taken in the depths of the most severe recession since the Second World War.
“The implications for the 3,600 businesses and the people employed by those businesses arising from your decision are stark, to say the least, and could have a knock-on effect on access to justice if any are forced to close as a result.
“It is particularly disappointing that this decision should come from organisations with the reputation and standing of the Britannia Building Society and the Co-operative movement who understandably make much of their long-standing commitment both to the mutual ideal and the communities they serve.”
Mr Heslett has asked for an urgent meeting with the lender and wants the action to be suspended.
The Birmingham Post reported earlier this month that the Britannia Building Society and Co-operative Financial Services had officially merged, creating a business with nine million customers and more than 12,000 employees.
The Law Society also stepped in to ask for a rethink when Abbey said it was taking 7,000 local solicitors off its panel earlier this year.
