Legal services consumer panel issues warning

The Legal Services Consumer Panel has urged legal service providers to take urgent action to better manage consumer complaints. A recent analysis of data from the Panel, the Legal Ombudsman (LeO), and the Legal Services Board has revealed a worrying trend in the mismanagement of complaints. This issue is critically undermining consumer trust and damaging the reputation of the legal services sector. With 46% of LeO’s investigations finding inadequate complaint handling by providers, there is a clear discrepancy between the services consumers expect and what they receive.

Tom Hayhoe, Chair of the Legal Services Consumer Panel, remarked "Consumers should not feel disillusioned or ignored when they raise complaints. It is vital that legal service providers develop robust mechanisms for resolving issues fairly, swiftly and transparently. Recent scandals in the legal sector have highlighted how important complaints intelligence can be. This is why we are in full support of the approach proposed by the Legal Ombudsman for standardisation, an approach we have been calling for over many years”.

While progress has been made in promoting better practices by the Legal Services Board, the persistent lack of consistent standards in complaint handling remains problematic. The Panel advocates for immediate reforms including the standardisation of complaint handling procedures, making complaints data publicly accessible, and fostering collaboration among regulators and service providers to instil a consumer-focused culture.

Key findings from the Tracker Survey 2024 paint a concerning picture: only 51% of consumers knew how to complain about poor service, and less than half would approach their provider directly. Furthermore, 21% of consumers reported they would not know how to lodge a complaint, while 33% expressed distrust in providers' ability to manage complaints. Even among those aware of their rights, many felt hesitant to engage with their providers, fearing it could impact their service or incur additional costs.

In light of these findings, the Legal Services Consumer Panel remains steadfast in its commitment to advocate for consumer rights and improve experiences within the legal framework. By pushing for the publication of first-tier complaints data and encouraging a standardised approach, the Panel aims to cultivate a more accountable legal services environment that prioritises consumer needs.