legal services consumer panel | october 2014 elisabeth davies consumer issues in legal services...

LEGAL SERVICES CONSUMER PANEL | October 2014

ELISABETH DAVIES CONSUMER ISSUES IN LEGAL SERVICES LEGAL WALES CONFERENCE FRIDAY 10 OCTOBER 2014BANGOR UNIVERSITY



WHO WE ARE, WHAT WE DO• Providing independent advice on the consumer

interest on legal services regulation issues– Helping the Legal Services Board to “get things right

first time” working as a critical friend from the inside

• Representing different types of consumer– Prioritising those who are less able to give voice to

their own interests – “vulnerable consumers”

• 8 lay members plus a small secretariat


Statutory basis

• Legal Services Act 2007

• Geographical remit: England and Wales

• Powers– To make representations on any issue

– To trigger an investigation in specific areas

– To publish our advice

• Duties on others– Legal Services Board must give reasons when it

disagrees with our policy advice

– Mandatory consultee on specific activities


OUR VISION

• A market where everyone can access high quality and affordable legal services that meet their needs:– Responsive services

– High quality advice

– A diverse workforce that understands its diverse clients

– Quick, fair and cost-effective complaints handling

– Consumers placed at the heart of regulation


A strong evidence base

• Annual Tracker Survey: – Nationally representative sample of adults and

sample of users of legal services

– Booster samples for Wales and BME groups

• Consumer Impact Report 2014:– Our flagship report

– Assesses the legal services reforms from a consumer perspective

– The third edition will be published end of this year


A CHANGING MARKET FOR CONSUMERS?

Choice satis-faction

Shopping around

Difficult to compare

Used same lawyer

Fixed fee Value for money

0%

10%

20%

30%

40%

50%

60%

70%

80%

2011201220132014


What’s changed for consumers

• Compared to 2011 data consumers are:

– happier with the available choice

– shop around more

– are more satisfied with value for money

• Fixed fees have risen in use

• Online delivery is becoming more prevalent

• Almost 1 in 5 transactions involve some degree of unbundling


ONLINE SERVICE DELIVERY

• Consumer demand– Around 1/2 services delivered remotely (LSCP Tracker)

– 47% consumers say online delivery important (Peppermint)

– 23% law firms currently offer 24/7 interactive legal online services and further 26% plan to within a year (Peppermint)

• Examples of new services– Online tracking, case management

– Automated document services, e.g. wills, divorce

– ‘Ask an expert’ piece-rate or subscription services

– Guided choices, e.g. roadtrafficrepresentation

– Apps for conveyancing, PI claims etc


Challenges facing consumers

• Making informed comparisons on quality is difficult

• Levels of trust in lawyers is low – How low?• High numbers of ‘silent sufferers’ - 44% of

dissatisfied customers do nothing


TRUST IN LAWYERS

Docto

rs

Teac

hers

Lawye

rs

Accou

ntan

ts

Ordin

ary

pers

on

Shop

ass

istan

ts

Car m

echa

nics

Banke

rs

Build

ers

Esta

te a

gent

s0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2011201220132014


SILENT SUFFERERS

Tele

com

mun

icatio

ns

Utiliti

es

Tour

ism

Retai

l - n

on-fo

od

Finan

ce -

bank

s and

bui

ldin

g so

cietie

s

Autom

otiv

e

Finan

ce- i

nsur

ance

Serv

ices

Retai

l- fo

od

Publ

ic Se

rvice

s (na

tiona

l)

Leisur

e

Publ

ic Se

rvice

s (lo

cal)

Tran

spor

t

Lega

l ser

vice

s0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


CHALLENGES FACING CONSUMERS

Research by the Legal Services Board suggests that just 21% of people with a problem who seek advice get it from a regulated lawyer

• New challenges around balancing access to justice and consumer protection

• Unregulated businesses are emerging to fill gaps


What’s changed for Welsh consumers • Less likely to have used any legal services within the last

two years

• More likely to have made a will

• More confident in regulation: they say they are more likely to trust lawyers, feel their consumer rights are protected and have confidence to complain

• More likely to use small local law firms and to ask lawyers to do all the work rather than do some of the legal work themselves

• More likely to use a fixed-fee deal

• More satisfied with the outcome of their case and service received


Challenges facing consumers in Wales

• Importance of physical access to providers

• The implications of the jagged edges

• Online service provision – implications of location

• Welsh language needs - SRA proposals to change their training requirements


What about the future?

• What developments in the period to 2020 are most likely to have an impact on the consumers of legal services?

• Four areas we consider will have the most profound impacts on consumers: – Self-lawyering

– The influence of technology

– Changes in consumer behaviour

– Market changes


Future consumer issues

• Core challenge - extend access to justice to those currently excluded from the market because they cannot afford legal services

• Consumers will seek alternatives to lawyers or use them in different ways

• More services will be delivered by unregulated businesses and providers

• Calls will grow for more radical solutions which cut out lawyers, such as an inquisitorial style of justice and online dispute resolution

legal services consumer panel | october 2014 elisabeth davies consumer issues in legal services...

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