MINISTRY OF JUSTICE
News Release (LSCC) issued by The Government News Network on 7
November 2007
Today (November 7
2007), the Legal Services Complaints Commissioner, Zahida Manzoor
CBE, formally announced that the Law Society's complaints
handling arm - the Legal Complaints Service (LCS) and the
Solicitors Regulation Authority (SRA) - has not handled complaints
in accordance with its 2006/07 Improvement Plan. However, the
Commissioner will not be imposing a financial penalty on the Law
Society who remains accountable for their performance.
The Commissioner said:
"Consumers now receive a faster and a better service (in
some areas) from the LCS and SRA as a result of three years of
hard work by my Office, changes in structure within the Law
Society and closely monitored Improvement Plans. However, more
still needs to be done.
"It is disappointing that five of the thirteen targets I set
were missed and that of those missed the majority related to the
quality of complaints handling. However, there were also some
encouraging signs of an upturn in performance. The LCS and SRA met
all three of their timeliness targets, exceeding the target for
the number of cases closed within 12 months. This is positive
news for consumers, who in the past have had to wait too long for
their complaints to be resolved, and is a reflection of the hard
work undertaken by staff in the LCS, SRA and my Office to enhance
the service consumers receive".
In announcing her decision not to impose a penalty on the Law
Society the Commissioner said:
"Before I made my decision, I considered all the relevant
facts and representations made by the Law Society. The decision
was finely balanced but my conclusion was that not levying a
penalty was appropriate in the circumstances to reward the effort
made and to incentivise sustained improvement"
However, the Commissioner warned the LCS and SRA against future
complacency and added:
"Sustaining improvements in all areas is something I place
great importance on, and something I expect an organisation now
out of its second improvement plan year to deliver. The 2006/07
targets focused on fixing further the basics and were achievable
'building blocks' designed to help the organisations on
their road to recovery.
"The consumer and the legal profession should expect the LCS
and SRA to not only meet all targets but to show an ambition to
excel beyond them. I know targets are not an end in themselves,
but as the evidence shows, they can act as a catalyst for
improvement and change. I am concerned that early indications show
that the LCS and SRA are falling behind the agreed 2007/08
targets. The Law Society now needs to deliver on all aspects of
its performance.
"Although not part of last year's decision, my Office
has just completed a major audit of the LCS's and SRA's
handling of miners' compensation cases. I requested this
audit as I have ongoing concerns as to how complaints in this
particular area are being handled. The audit findings will be
reported in due course."
Looking ahead the Commissioner noted:
"The advent of the new independent complaints handling body
(Office for Legal Complaints) means a step forward is now
essential to ensure the LCS is in shape and ready to hand over its
operation to this future organisation.
"The Law Society has advised me that it is considering
making a substantial further investment this year (in the region
of £500,000) to boost the recovery of its complaints handling arm.
Of course I would welcome this cash injection in the short term,
but good management - and not just an open chequebook - is the key
to keeping this organisation on track to improve.
"Looking forward, it is essential that LCS and SRA costs
become controlled down to a more sustainable amount. The current
running cost of £36.3 million is substantially higher than the
projected £19.9 million for the Office for Legal Complaints. I
have already commenced work to tackle this and will discuss with
the Law Society how the LCS and SRA can meet the major challenge
of closing this gap. Any savings that can be made should benefit
the profession and ultimately the consumer."
The Commissioner concluded:
"The legal profession in England and Wales justifiably
enjoys an excellent reputation for the quality of its work and the
standard of its service. A good complaints handling organisation
can only enhance this reputation and give consumers more
confidence in the profession. I look forward to continuing my work
with the Law Society. We need to develop the LCS and SRA into
truly effective and efficient complaints handling organisations.
This will provide solid and cost effective foundations for the new
Office for Legal Complaints which is independent of the legal
professional bodies."
Notes to Editors:
1. Ms Manzoor CBE was appointed Legal Services Complaints
Commissioner in February 2004 in addition to her role as Legal
Services Ombudsman (LSO). The Commissioner only has powers in
relation to the Law Society of England and Wales. Ms Manzoor was
reappointed as both Commissioner and LSO for a period of three
years in March 2006.
2. The roles of the LSO and the Commissioner are distinct. The
LSO examines the handling of individual complaints by the
professional bodies on behalf of members of the public. The
Commissioner examines the Law Society's capability to handle
complaints made about its members efficiently and effectively.
3. The Commissioner has the power under section 52 of the Access
to Justice Act 1999 to require the Law Society to provide
information on how it deals with complaints, to make
recommendations about the complaints system, to set targets for
complaints handling, and require the Law Society to submit a plan
for improved complaints handling. In addition, the Commissioner
has the power to levy a penalty on the Law Society if it fails to
deliver an adequate plan or fails in the delivery of that plan.
The maximum penalty that can be imposed is the lower of £1m and 1%
of the annual income of the Law Society.
4. In January 2006, the Law Society restructured its organisation
into 3 separate functions:
* the Law Society represents solicitors to help protect and
promote their work; overall responsibility for the regulatory
arrangements
* the Solicitors Regulation Authority (SRA) is
responsible for regulatory and disciplinary matters; setting and
maintaining standards; handling complaints that allege misconduct
against solicitors; and
* the Legal Complaints Service (LCS)
is responsible for dealing with complaints about the service
provided by solicitors to consumers.
5. The targets set by the Commissioner and contained in the Law
Society's Plan for the period 1 April 2006 to 31 March 2007
include the following:
Improving timeliness:
* By the end of March 2007, to have no
more than 65 cases in the live caseload (all open cases) that have
been open for 15 months or more - LCS and SRA had 56.
* 57% of
cases closed on or after 1 April 2006 and on or before 31 March
2007 are closed within 3 months of opening - LCS and SRA achieved
59%.
* 94% of cases received on or after 1 April 2006 and on
or before 31 March 2007 are closed within 12 months of opening -
LCS and SRA achieved 94%.
Improving the quality of decisions:
* 80% of special payments
to be in line with LCS and SRA guidance - LCS and SRA achieved
48.4%.
* 80% of consumers are provided with a substantive
response within 55 calendar days of receipt of the complaint - LCS
and SRA achieved 78.5%
* 80% if consumers are contacted at
least every 30 days or at key stages during the complaint - LCS
and SRA achieved 61.9%.
* In 80% or more of cases LCS will
share appropriate guidance with consumers and solicitors at the
relevant stage of the case, to ensure they can make an informed
choice about any level of compensation - LCS achieved 81.7%.
*
95% of initial letters issued to consumers contained all the
information required - LCS and SRA achieved 97.6%.
* In 73% or
more of referrals to the Legal Services Ombudsman (LSO) the LSO
upholds the handling of the case by the Law Society - LCS and SRA
achieved 68%.
6. In June 2007 the Commissioner notified the Law Society that it
had not handled complaints in accordance with the Plan submitted
to her covering the period 1 April 2006 to 31 March 2007. The
Commissioner provided the LCS and SRA with an opportunity to
provide representation to her, before giving her final decision on
whether complaints have been handled in accordance with the Plan,
whether to levy a penalty and if so, at what level.
7. Additional background information on the Commissioner's
decision, and text from the letters notifying the Law Society of
the decision, will be available on the Commissioner's website
http://www.olscc.gov.uk
shortly.
OFFICE OF THE LEGAL SERVICES COMPLAINTS COMMISSIONER
