'Horrendous' stress for couple forced to pay monthly mortgage twice after law firm collapse

Key developments are emerging from the global stage. 'Horrendous' stress for couple forced to pay monthly mortgage twice after law firm collapse 4 hours ago Share Save Add as preferred on Google Iolo Cheung Wales Gabriella Smith was told by her solicitors that the remortgaging process on her house had been "completed" - only to be hit with payment requests from two providers A couple who ended up paying their monthly mortgage twice, after the law firm they used to remortgage went bust, have described the stress as "horrendous". In January, solicitors told Gabriella and Kurtiss Smith the mortgage on their home in Barry, Vale of Glamorgan, had been successfully moved from Halifax to Nationwide – only to be hit by payment requests from both, following the sudden closure of PM Property Law. They had to borrow money from family and friends to cover the £2,000 monthly payment for two different providers.

But, just a day after Wales News contacted the banks for a response, Halifax said it had "put this right" and "refunded the additional payments". Gabriella and Kurtiss are among hundreds of customers who were affected by the sudden closure of PM Law Group, the parent company of the solicitors they used to remortgage. The company is now under investigation by South Yorkshire Police and the Solicitors Regulation Authority (SRA), who are looking into suspected fraud.

The Details

The couple bought their first house together five years ago, overlooking the popular beachside resort at Barry Island. On 23 January they were sent a 'Final Completion Statement' for their remortgage by PM Property Law, stating the transfer of funds between new provider Nationwide, and old provider Halifax bank had been completed. But on 5 February the couple were shocked to receive a message from Halifax saying they had missed a payment.

After contacting both banks, they were informed by Nationwide that PM Property Law had closed before completing the remortgaging deal. Funds that should have been transferred from one party to the other had allegedly not been passed on by solicitors, meaning both banks had still had an open mortgage account for the couple. Gabriella says they were threatened with repossession of their home if they missed mortgage payments "I just instantly thought 'where is that money and what's happened to it?

'" recalls Gabriella, 30. "You put your trust in solicitors to deal with things like this. We just felt instantly betrayed, and thought 'why have they done this?

'" PM Property Law's parent group, PM Law Group, had shut abruptly at the beginning of February , leaving hundreds of clients in the lurch. The SRA said it was investigating a "sophisticated suspected fraud", involving "the improper removal and misuse" of almost £40m in client funds and working through "hundreds of further claims" with over £16m having been paid out so far from a compensation fund and money previously held by PM Law.

The development has drawn wide international attention, with diplomatic circles watching closely.