Banks should 'supervise' attorneys, says adjudicator

De Rebus, June 2001

Attorneys acting for banks can expect closer 'supervision' by their clients if banking adjudicator Neville Melville has his way.

Answering questions at a press conference in Sandton last month to launch his annual report for 2000, Mr. Melville said he has 'two areas of concern' in respect of banks' attorneys - conveyancing and collections. He believed that banks should see to it that their attorneys acted responsibly in these areas.

He gave as an example the service of the summonses in collection matters in which the bank knew the address at which the debtor was actually living. The bank should make sure that its attorneys were given that address and that the summons was served personally on the debtor.

Similarly, in conveyancing matters banks could, by means of closer supervision, ensure that their attorneys did not 'sit on their instructions' and thereby cause delays and consequential problems for the parties.

Mr. Melville added that his office would recommend that the need for supervision be included in the published code of banking practice.