ELISABETH DAVIES CONSUMER ISSUES IN LEGAL SERVICES LEGAL

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

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 LEGAL SERVICES CONSUMER PANEL | October 2014

Statutory basis • Legal Services Act 2007 • Geographical remit: England 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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

A CHANGING MARKET FOR CONSUMERS? 80% 70% 60% 50% 2011 40% 2012 2013 30% 2014 20% 10% 0% Choice satisfaction Shopping around Difficult to compare Used same lawyer Fixed fee Value for money LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

TRUST IN LAWYERS 90% 80% 70% 60% 50% 2011 40% 2012 2013 30% 2014 20% 10% ts s ag en er ild Es ta t e Bu nk er s cs an i m ar C Ba si Sh op as y ar rd in O ec h st pe r un co Ac an ts so n ts ta n rs ye w La ac Te D oc to rs he rs 0% LEGAL SERVICES CONSUMER PANEL | October 2014

ce na n Fi bl ic Pu s t or ce vi er ls sp an l) ca (lo ur e l) io na od fo es ic Le is s Tr Le ga il- at (n ic e es rv Se ic rv Se et a R Se rv e e iv s ie od ra nc ns u ei m ot to Au ci et so -fo s m is ur -n on in g ild bu ai l et R na nc Fi d an bl ic Pu ks an -b To iti e til U ns tio ic a un m m co le Te SILENT SUFFERERS 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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 LEGAL SERVICES CONSUMER PANEL | October 2014

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