Regulator seeks methods to reduce the backlog of complaints
The Legal Services Board (LSB) are discussing plans to force firms who have misled clients to pay compensation, even if they haven’t complained.
In a meeting last month, it has been revealed that the regulator is discussing proposals to punish firms who mishandle their clients’ cases in a more effective way. This method draws inspiration from the financial services sector, whereby businesses are compelled to identify whether a misdemeanour by their staff could have influenced other clients.
The papers put forward at the meeting last month stated that this approach:
“may be an avenue to explore with stakeholders in terms of whether such an approach could be adopted by legal services providers.”
The legal sector has been overwhelmed by the number of complaints made against firms which has caused this need to streamline the process. The Legal Ombudsman told Today’s Conveyancer earlier this year that the average wait time in pre-assessment is currently around seven months.
The Legal Ombudsman submitted evidence to the board that found a number of the complaints they received could have been handled at the first point of contact, i.e., by the firms themselves. They added that firms were inadequate in handling such matters in almost a quarter of the cases it investigated.
This has prompted the LSB to pursue plans, such as encouraging the Solicitors Regulation Authority to reduce the number of complaints by filtering through clients who could have a grievance before it reaches the formal complaints stage.
Dr Helen Phillips, chair at the LSB, said the new approach will be put forward early next year. She stated:
“To provide better outcomes for complaints and the profession more broadly, we want to see greater collaboration between regulators and the sector to ensure there is a consistent, high-quality approach to complaints handling across the sector. It must also be easier for people to make a complaint and follow the process.”
