Sampson backs universal conveyancing quality scheme
Arrival of ABSs could lead to rise in complaints, ombudsman warns
Adam Sampson, the chief legal ombudsman, has argued that a universal quality scheme for solicitor and licensed conveyancers may be needed to avoid confusing consumers.
In a report on conveyancing complaints published this morning, Sampson said the Society of Licensed Conveyancers would soon launch its own 'SLC quality assured' accreditation in response to the Law Society's CQS scheme.
The chief legal ombudsman said quality schemes were 'in principle a great idea' as 'any initiative that drives up standards and improves the quality of service being provided must be a positive step'.
However he said that, from a consumer perspective, accreditation schemes may 'confuse matters slightly'.
Sampson went on: 'I am broadly in favour of schemes like these, but there is an argument that in terms of achieving market differentiation and demonstrating quality to consumers, lenders and insurers, a more universal scheme might be something to aspire to in the future.
'From a consumer perspective, it really isn't clear what advantage there is to using a CQS accredited solicitor over an SLC Quality Assured licensed conveyancer and vice versa.
'In the meantime, comparison sites will help consumers to benchmark and there is always word of mouth. Using complaint data as an indication might also help, perhaps by using our published ombudsman decisions.
'However, it will take some months '“ maybe even years '“ before this information builds into anything particularly meaningful or representative.'
The Legal Ombudsman could 'more usefully' publish details of any firms that posed a significant consumer risk.
Sampson also warned that the arrival of ABSs could trigger a rise in conveyancing complaints.
He said with ABSs allowing estate agency groups and mortgage brokers to move into the residential conveyancing market, staff at LeO were 'bracing ourselves' for an increase in automated transactions and fixed price deals.
The ombudsman said this may mean more residential conveyancing complaints relating to poor costs information and delay.
'Price is undoubtedly a key driver in consumer buying habits when it comes to conveyancing and this plays into the hands of high street chains that benefit from economies of scale. For many traditional law firms specialising in conveyancing it may sound a death knell altogether.'
Sampson went on: 'There are benefits to the consumer looking for a cheap deal, but my concern is that some firms may be too focused on the volume of work they're creating at the expense of providing a reasonable service.
'Automated and fixed price services may also be too geared towards simple transactions. Where there are complexities '“ more detailed searches required for example '“ that need to be taken into account, such rigid business models may come unstuck. And it is then the consumer who often suffers as a result.'
The ombudsman concluded: ''Fixed fee' and 'no move, no fee' agreements are fundamentally great innovations in a legal industry that has been hit hard by economic austerity.
'It is an increasingly consumer led market in which people want to know where they stand and then budget accordingly.
'I anticipate it will be those lawyers and non-lawyers behind many of these innovations who can also commit to greater levels of customer care that ultimately prosper.
'This means keeping to agreements over cost, ensuring delays are kept to a minimum, and maintaining good lines of communication.'