Otherwise unregulated suppliers of consumer legal services could face action under consumer protection law for unfair practices, the competition watchdog warned today. In a series of announcements following a long-running investigation, the Competition and Markets Authority (CMA) said it is ’taking action to protect the growing number of UK consumers who are opting for alternatives to high street solicitors when making a will or getting divorced’.
Actions include a writing to seven providers of unregulated legal services ’cautioning them against using particularly concerning practices such as aggressive upselling, the refusal of refunds and failing to respond to complaints’, the CMA said. Businesses that fail to address concerns could face a formal investigation under new enforcement powers from next spring.
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In an open letter to the sector beginning 'Dear Unregulated Legal Services provider', the CMA reminds providers that consumer protection law requires businesses to provide consumers with the information they need to take informed decisions. Businesses must also conduct their services ’with reasonable care and skill’.
The CMA has also published consumer guides for people making a will or going through a divorce. The guides also highlight ’significant consumer risks associated with pre-paid probate services’.
Hayley Fletcher, interim director for consumer protection at the CMA, said: ’Alternatives to conventional high street law firms can offer convenient services for people – and when day-to-day budgets are already under pressure, they can be a more cost-effective option. Those offering these types of legal services often meet their customers at some of the most challenging times in life, so it’s particularly important that a difficult time is not made harder by misleading or unfair practices.
’Our new guides will help empower consumers to ask businesses the right questions before they buy and give businesses an opportunity to get their house in order.’
The CMA announced its investigation into will-writers last year.
Law Society president Richard Atkinson said: 'Many people are not familiar with the costs, processes or services involved in writing a will and some businesses in the unregulated will writing sector may take advantage of this. We urge the public to exercise caution when making decisions about their wills. Without legal advice, mistakes can easily happen, especially if there are several beneficiaries or complex financial circumstances.
'A legally valid will written with an expert solicitor, ensures that the estate is distributed according to the person’s wishes. As October marks Free Wills Month, qualified legal professionals provide regulated and insured advice, helping to prevent a whole raft of potential problems affecting loved ones down the line.'
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