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10 January 2013
Issue: 7543 / Categories: Legal News
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Paying for the Ombudsman

Lawyers lose right to free complaint cases

Lawyers will lose their right to two free client complaints cases per year from April, raising an extra £1.6m in fees for the Legal Ombudsman.

Annual fee income should then amount to about £1.8m, which means the levy against firms will fall slightly from £16.8m to £15.1m, according to the Ombudsman’s budget plan for 2013/14.

Currently, lawyers are allowed two free cases per year. The Ombudsman also has discretion to waive fees in cases where it is satisfied the customer service was adequate and the remedy offered was reasonable. Otherwise, a £400 fee per case is chargeable.

The rule was introduced to address concerns that small firms and those operating in contentious areas of law would generate more complaints and therefore be unfairly affected by case fees. In practice, however, only 400 firms exceeded their free allowance—fewer than expected—while the Ombudsman waived fees in more than a third of cases—more than expected.

In November, the Ombudsman argued in a consultation document that the waiver option gave small firms engaged in risky work sufficient protection. The proposal received support from firms and legal bodies.

The Ombudsman anticipates it “may receive a very significant level of demand” when it begins accepting claims management company (CMC) complaints this year, and cites the example of the Financial Ombudsman Service, which receives 1,500 claims per day about payment protection insurance, half of which involve CMCs. However, it says this is impossible to predict.

Writing in the report, Chief Ombudsman Adam Sampson said: “Although we have made a good start to our work, we can still improve on the speed, cost and quality of our handling of complaints.”

Issue: 7543 / Categories: Legal News
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MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
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