LeO takes action to prevent complaints about legal fees

The Legal Ombudsman (LeO) confirms that it is taking action to stop complaints involving legal fees and reclaiming them.

LeO has published new resources setting out the types of disputes that can arise, how to resolve them, and how they can be prevented. It’s also talking to legal providers on both sides of these complaints, as well as to legal regulators and professional bodies, to make its position clear.

Around one in every ten complaints referred to LeO centre on the amount consumers have been asked to pay legal providers. Unhappiness with costs also feature in many more complaints – in particular, those about service providers’ standard of communication, where the lack, or quality, of information about costs may be a factor.

LeO’s intervention follows the launch of refreshed guidance last year, in view of a number of high-profile court cases that put a spotlight on complaints about legal costs. Following these cases, some consumers have sought refunds of legal fees they’ve paid in the past – using other law firms to pursue these claims for them.

Chief Ombudsman Paul McFadden said:

“We know some solicitors are frustrated by the actions of other law firms who are looking to reclaim legal fees on consumers’ behalf.

“Firms representing consumers must act in a professional and constructive way, in line with their regulators’ expectations.

“They need to make sure they’re not wasting everyone’s time – and are only pursuing complaints where it’s likely a consumer has unfairly lost out.

“However, solicitors receiving requests for information, and any related complaints, also need to respond constructively.

“And if, after investigating a consumer’s concerns, they believe they’ve not made costs clear or charged unfair fees, they need to put things right in line with our well-established approach.

“We’re talking to the Solicitors Regulation Authority, The Law Society and consumer-facing organisations to make sure everyone’s playing their part – and we’re only asked to step into individual complaints where our input is genuinely needed.”

LeO is setting out the answers to some common questions that arise in complaints about costs, together with some illustrative case studies.

These are intended to:
    • Help solicitors understand how to respond to requests they receive for historic bills – preventing complaints from being made.
    • Help solicitors resolve complaints fairly if they are made.
    • Help law firms representing consumers understand our position – so they don’t inappropriately pursue solicitors with complaints.
    • Help consumers understand the issues involved, so they’re aware of the possible outcomes if they pursue a complaint like this.

The new guidance is published here. 

 

Kindly shared by The Legal Ombudsman (LeO)