Defective Advice, Deficient Security: Professional Negligence In The Lending Sector

A lending transaction has many moving parts and throughout its course will involve several professional advisors such as valuers, solicitors, surveyors, accountants and auditors. As a lender, you place considerable reliance on those professionals, and each one owes a duty to exercise reasonable skill and care. When that duty is breached and you suffer loss, a professional negligence claim may offer a viable route to recovering those losses, particularly where the borrower is insolvent, bankrupt, or the security has proved inadequate.

In this article we highlight the areas from which professional negligence claims most frequently arise, and some key considerations for protecting your position.