The Solicitors Regulation Authority (SRA) has reported a significant increase in the number of complaints received by law firms, rising by about 20% between 2019 and 2023. Despite this increase, the average number of complaints per practice remains low, at just four.
Distribution of Complaints
The data shows that small, medium, and large firms receive a proportionally higher number of first-tier complaints (FTCs) relative to their workload. In contrast, very large firms, which generate 59% of the profession’s revenue, account for only 12% of the complaints. This discrepancy is attributed to the fact that large corporate clients of very large firms typically have alternative avenues for addressing grievances.
Handling and Resolution of Complaints
Law firms are required to provide a final, written response to a complaint within eight weeks, after which clients can approach the Legal Ombudsman (LeO). In 2023, law firms received 36,887 complaints, nearly 10% more than in 2022 and just under 20% more than in 2019, before the COVID-19 pandemic. This increase could be linked to the rising number of practising solicitors and a greater willingness among consumers to lodge complaints. The SRA also points to its 2018 transparency rules, which require law firms to publish their complaint handling procedures, as a factor in the increased complaint numbers.
The number of complaints resolved has also grown, from 24,776 in 2019 to 29,835 in 2023. The resolution rate of complaints by law firms has improved significantly, rising from 71% in 2013 to 81% in 2023. Very large law firms lead in this area, resolving 98% of complaints. Medium-sized and large firms resolved 79% of complaints, while small firms resolved 68%. The weaker performance of small firms is likely due to larger firms having dedicated resources for handling complaints.
Common Causes of Complaints
The most frequent causes of complaints include delays (20%), failure to keep clients informed (17%), failure to progress cases, failure to provide adequate advice, and excessive costs. Complaints about excessive costs and failure to keep clients informed have the lowest resolution rates, although they are still resolved 74% of the time. Complaints concerning criminal activity and discrimination, though few in number, have very high resolution rates at the first-tier stage.
Future Improvements
Earlier this month, the Legal Services Board published new statutory requirements and guidance on handling FTCs, which all regulators must implement within the next 18 months. These measures aim to improve performance by ensuring that information about law firms’ complaint resolution performance is publicly available.
While the number of complaints to law firms has risen significantly, there has also been notable progress in resolving these complaints, particularly among very large firms. The SRA’s transparency rules and ongoing efforts to improve complaint handling are likely contributing to these trends.
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