Consumer panel

There are positive signs about improving consumer satisfaction with how they find, compare and then use law firms, major research by the Legal Services Consumer Panel has revealed. However, the panel said more vulnerable consumers “are potentially being left behind as those more empowered are able to take advantage of market changes”.

Clients may not need detailed information about separate businesses when work is referred to them by their law firm owners, the Solicitors Regulation Authority has said. The Legal Services Consumer Panel has warned that the new separate business rule could leave consumers in the dark.

Solicitors who refer consumers to their unregulated businesses under the revised separate business rule may obtain consent to do so, but there is a serious risk that it will not be informed, a member of the Legal Services Consumer Panel has warned.

Confusion over law firm complaints and the new European directive on alternative dispute resolution is set to continue, the chair of the legal services consumer panel has predicted. Elisabeth Davies said the panel was taken by surprise by the Legal Ombudsman’s change of heart on the issue.

Consumers using ‘unbundled’ legal services generally report a positive experience and it has the potential to widen access to justice, groundbreaking exploratory research has found. However, it made clear that other solutions were also needed to address the legal needs of “more vulnerable consumers” unable to unbundle.

Vulnerable people could lose out under the latest plans by the Solicitors Regulation Authority for the regulation of consumer credit work, the Legal Services Consumer Panel has warned. Meanwhile the Law Society called for greater clarity on payment of legal fees by instalments.

The need to extend access to justice to those who cannot afford legal services is “already resulting in less involvement by lawyers in many of the tasks that previously made up their staple diet”, the chair of the Legal Services Consumer Panel has said. Elisabeth Davies also suggested that the emergence of professional McKenzie Friends “may repeat itself in other sections of the market”.

The young entrepreneur behind RateMyBarrister.com has expanded the site to include solicitors. William Rees, a barrister based in Cardiff, accepted that this would mean finding a new domain name.

The Legal Services Consumer Panel has had to make “difficult judgement calls” in balancing the competing needs for increased access to services with consumer protection, the panel’s chair, Elisabeth Davies, has admitted.

The Legal Services Consumer Panel has strongly attacked plans by the Council for Licensed Conveyancers to cut the size of grants from its compensation fund from £1m to £500,000 – a quarter of the amount clients of solicitors can claim.