The Legal Services Act – Reforms that Put Consumer Interest at Heart? Or do they ?

The Ministry of Justice states that the Legal Services Act seeks to “reform the way that legal services in England and Wales are regulated and to put consumer interest at the heart of the regulatory framework”. So what are clients to expect of their law firm in the future?

The Legal Services Act introduces a number of changes to how a typical law firm operates, most importantly:-

• Certain legal services can be provided by a non-legal organisation under the guise of a new “alternative business structure”.

However, the real question on the public’s lips is how such changes will affect them. What type of service should they expect from their law firm in the future and, who will they want to act for them?

The changes have been dubbed the ‘Tesco Law’ reforms, after the well known supermarket chain has stated that it is one of many large organisations considering entering the legal services industry. One of the areas targeted, we believe, will be Personal Injury Claims.

The proposed advantages to consumer, of the “Tesco Law” approach, are supposedly lower cost legal services available from accessible locations as well as online and outside of the more “traditional” office hours of 9am to 5.30pm. The idea is that you could arrange to sell your house whilst buying the wine that you will then use to celebrate. However, despite the costs and availability advantages that an everyday consumer might appreciate, there are issues arising from the quality of the service that might be received. As the “Tesco Law” business model is undoubtedly targeting commoditization to achieve cut prices as opposed to providing an excellent and bespoke customer service.

Consumers may well see a reduction in the level of personalised service. There may well be less client contact, especially face to face meetings and personal communications by telephone. It is inevitable that commoditization will result in a service comprising of a mass of generic letters and processes which will be at the heart of the service, rather than the customer being at the heart of the service.

We anticipate that the legal services industry will see a shift towards services falling into two very distinct areas:-

The first being those areas where low cost is key, resulting in process driven, commoditized services offered by often larger organizations where there is a much greater ratio of non-qualified to qualified solicitors.

The second being those areas where a client considers that the cost, although important, is not the only question on their mind, resulting in a service that not only combines excellent value for money but also provides a bespoke service.

SAS Daniels LLP are proud of their Personal Injury Department and will always strive to maintain a very personal and bespoke level of service. We understand that our client’s personal injury claims are extremely individual and should be dealt with as such. When all is considered what is more important than your health? Injury leading to a potential inability to provide financially for one’s family is a terrifying prospect. We believe that our clients deserve the best of personal service as every client and their concerns are unique. We work, in most cases, on a No Win No Fee basis, so why would you want to trust such a personal and sensitive transaction to a commoditized claims handling service?

‘Tesco Law’ will arrive later this year and consumers will make the ultimate decision as to who they want to act for them. What are your views of the forthcoming changes? Do the changes really put the consumer interest at heart? We value your comments.