Wednesday, February 03, 2010

Consumer protection ‘a low priority’ as Law Society demand Legal Complaints Commission’s ‘crooked lawyer’ complaints levy be reduced

Law Society of ScotlandLaw Society disputes law complaints body’s budget. THE LAW SOCIETY OF SCOTLAND is demanding a reduction in the annual ‘Penman levy' complaints levy imposed all solicitors currently set by the Scottish Legal Complaints Commission at £275 for solicitors with three or more years experience, this despite the fact the levy has already been reduced once by the ‘less-than-independent' SLCC, who are proposing a freeze on complaints levy payments for the coming year.

The complaints levy is used to fund the operation of the SLCC which was created in 2007 to ‘independently’ investigate complaints against ‘crooked lawyers’ and clean up the high levels of closed shop complaints whitewashes which, remarkably continue to occur during Law Society investigations into client complaints against their own members.

Lorna JackChief Executive Lorna Jack : Law Society’s replacement for Douglas Mill. Lorna Jack, Chief Executive of the Society contended the SLCC were handling lower levels of complaints due to lawyers facing financial hardship during the downturn. Ms Jack said : “The SLCC’s budget should reflect what is happening more widely in the economy, particularly given the financial difficulties solicitors have faced during the recession, and reflect the level of complaints the SLCC is currently handling, and expected to handle in the forthcoming year. At a time when solicitors are having to make tough decisions about their businesses and the Society has reduced the cost of the practicing certificate by £100, it is vital that the SLCC offers value for money.”

Ms Jack went onto attack the Legal Complaints Commission further, claiming it had plenty reserves to reduce levies on impoverished lawyers (who will pass on the levy charge to clients anyway, and then probably double or treble it according to the usual accepted practices of fleecing clients).

Ms Jack continued : “The SLCC’s proposed budget would indicate that they have more than sufficient funding to reduce the financial burden on solicitors and still run the operation effectively. It is particularly frustrating that, when the SLCC was planning its 2009/10 budget, the Society maintained that the levy on solicitors was too high and would lead to excessive reserves. Having now seen the proposed budget, (including reserves to cover 6 months operational costs) it seems we were justified in our view and we will continue to press for a reduced levy on our members this year.”

£275 a year for crooked lawyers to stay out of jail ? Come on Lorna, where else does someone get such a cosy deal ? It’s hardly worth complaining about when the Law Society does so much to protect the profession against consumer complaints …

Jane IrvineSLCC Chair Jane Irvine. Commenting on the Law Society’s call to reduce the levy, rather than simply freeze it, Jane Irvine, Chair of the Scottish Legal Complaints Commission said : “The budget consultation process is currently ongoing and it would therefore be inappropriate to respond to comments made in a press release from one of the professional bodies. We expect to receive formal responses from all the professional bodies following discussions with their representatives. The formal responses will be published on the SLCC website.”

Well, now that is a change, we wont need to do Freedom of Information requests to see what the Law Society of Scotland said in their responses … so lets hope for a bout of arm twisting and bullying well worthy of Scotland’s governing body of solicitors which as never once placed consumer protection above the interests of its solicitor membership.

SLCC squareSLCC Budget freeze takes account of downturn for lawyers, not downturn for Scotland. While the Law Society sticks to its chosen path of confrontation on this year’s complaints levy, Jane Irvine explained the Commission’s way of thinking for their 2010/11 budget. Ms Irvine said : "The Board is keen that levies collected from the legal profession do not change dramatically from year to year. Taking this and the economic downturn into account, we have decided to use SLCC reserves to stabilise the levy fee at a time when there is a reduction in the number of practising legal professionals, which of course, means fewer levies to be collected by the professional bodies."

She added: "The general levy for the next financial year will remain the same with additional categories being added to bring In-house Conveyancing and Executry Practitioners inline with In-house Solicitors and to also include members of the Association of Commercial Attorneys."

SLCC members expenses SLCC Board members “We’re in the money, we’re in the money”. In January of each year, the SLCC consults with the professional bodies and their members on our budget for the next financial year. This is in accordance with the Legal Profession and Legal Aid (Scotland) Act 2007. The levy is gathered by the professional bodies (but not always paid on time) ; the Law Society of Scotland, Faculty of Advocates and the Association of Commercial Attorneys (the levy for Conveyancing & Executry Practitioners is collected by the Law Society of Scotland).

Your can read the letters to the professional bodies and the proposed budget for 2010-2011 here (PDF 4.39MB).

Jane Irvine continued: "Similarly, whilst our previous budget doubled the levy we apply when complaints are upheld, this will not increase in our next financial year. What we have done, however, is to give ourselves more discretion when and how we charge the complaints levy with the maximum set at the relevant levy banding.”

"The SLCC proposed budget for 2010 to 2011 is £2,839,336 and although our budget calculations need to factor in running costs of up to six months, our under-spend has enabled the overall budget to be reduced by over £145,000."

To understand why the ‘Penman Levy’ complaints levy exists, read this : How Law Society's 'cancelled' prosecution of Borders solicitor Andrew Penman ignited moves to reform regulation of Scotland’s crooked lawyers

To find out where some of this money goes, a couple of my previous articles make illuminating reading : Calls to scrap 'complaints laundering' Scottish Legal Complaints Commission as expensive anti-consumer quango revealed as talking shop for lawyers & Expenses secrecy scandal as Scottish Legal Complaints Commission seeks ban on information requests to protect lawyers 'mental health & safety'

MacAskill tight lippedJustice Secretary Kenny MacAskill wrote off £2 million of taxpayers money as start up costs of new crooked lawyers regulator. So, no increase in the complaints levy for lawyers, but no thought either of paying back the two million pounds plus of Scottish taxpayers money pumped into the SLCC by the Scottish Government which Justice Secretary Kenny MacAskill wrote off as ‘start up costs’, which you can read more about here : MacAskill silent on taxpayers £2million 'write off' to lawyers quango as Complaints boss reveals Law Society defaulted on levies.

What with the recession and public services needing the money more than crooked lawyers, surely the SLCC should be handing back those millions which would be better spent on hospitals & health rather than letting the legal profession get away with receiving yet another gigantic bung from the taxpayer.

Proposed levy charges for 2010/2011 are:

Solicitors with 3 plus years experience £275
Conveyancing or Executry Practitioners
with 3 plus years experience £275
Advocates £223
Solicitors within first 3 years of practice £138
Conveyancing or Executry Practitioners
within 3 plus years of practice £138
In-house solicitors £91
In-house Conveyancing or Executry
Practitioners £91
Commercial Attorneys £91

Complaints levies are charges made against legal practitioners when a complaint is upheld. The proposed complaints levies for 2010/2011 are:

Mediation levy £0
No complaint upheld £0
Complaint accepted - First Settlement up to £500
Complaint accepted - Second and
Further Settlements up to £700
Formal Determination - First up to £800
Formal Determination - Second up to £1,200
Formal Determination - Third
and Further Determinations up to £2,000

My previous reports on the Scottish Legal Complaints Commission can be read here Scottish Legal Complaints Commission : The story so far, and it should be noted the SLCC’s first annual report is yet to be published, dates floating around at the moment suggest March 2010, and we can also expect the final report of the Scottish Legal Services Ombudsman, a position which the SLCC’s current Chair, Jane Irvine held prior to the Commission taking over the SLSO’s functions.

However, what we wont be seeing is a parade of clients or consumers who the SLCC have protected by addressing & resolving complaints & complicated cases of fraud involving solicitors ripping off the general public, because apparently, there are no major honours of resolving significant client complaints to speak of. Wonder why ? just read my earlier reports on the SLCC to find out.

15 comments:

  1. Given the size of the financial burden the legal profession regularly imposes on the taxpayer and any individual unfortunate enough to come into contact with it, £275 seems ridiculously cheap at the price.

    Just another example of one law for some and another for others.

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  2. If I were Jane Irvine I'd say FU to the Law Society and double it !

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  3. Why all the fuss Laura ?

    As Peter says its the clients who will end up paying for it anyway through a few billing tricks.

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  4. £275 a year for crooked lawyers to stay out of jail ? Come on Lorna, where else does someone get such a cosy deal ? It’s hardly worth complaining about when the Law Society does so much to protect the profession against consumer complaints …

    Seems a fair enough reason why hanging should be brought back for these bastards

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  5. Sour grapes.
    The Law Society used to collect it,never reduced it.Now they are put out the SLCC receives the levy.

    Lorna Jack please go away and Peter you would do good not to quote her too much because none of us can stand her.

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  6. £275 is a drop in the ocean to lawyers.They will just add it to their fees and double it.

    Robbers.

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  7. I get the general impression from your blog this SLCC isnt worth 50p.Having read some of your previous on it I agree it could do a lot more for people than its doing (nothing).

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  8. No matter how high or low the complaints levy is it is no deterrent to a lawyer who deliberately sets out to rip off their client.

    Only stronger regulation will do something about that and clearly the SNP and all others at Holyrood are in no mood to upset their friends in the legal profession.

    I suggest that consumers begin protecting themselves from lawyers and you can take that suggestion how you like !

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  9. The SLCC is an abomination and will do no good for the profession or the public.

    I am a solicitor and I firmly agree regulation should be devolved to a fully independent body yet to be created as the SLCC is by no stretch of the imagination "independent".

    I must say Peter,if it is true this all came about because of your case involving Andrew Penman there is good cause to feel anger at the Law Society for what happened.

    I'm sure that could have been cleared up at the time instead of provoking the slow death we are all suffering in business.

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  10. Long before the SLCC reduces fees for lawyers they should be paying back the £2 million you reported they got from the taxpayer.

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  11. First comment totally agree with you.
    These lawyers crying over a measly £275 is just a stage to take back complaints from outside interference.next they will be threatening legal action if they dont get their way I bet.

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  12. Anonymous said...

    No matter how high or low the complaints levy is it is no deterrent to a lawyer who deliberately sets out to rip off their client.

    Only stronger regulation will do something about that and clearly the SNP and all others at Holyrood are in no mood to upset their friends in the legal profession.

    I suggest that consumers begin protecting themselves from lawyers and you can take that suggestion how you like !

    3:15 PM

    Give that comment a medal !

    YES I THINK WE SHOULD START PROTECTING OURSELVES FROM THESE CROOKED LAWYERS !!!!

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  13. Like you I believe the SLCC is as bad as the Law Society and what we are witnessing here is just a tussle over who gets the money - not giving extra help to people ruined by their lawyers.
    Shame on the lot of them.There is not a pit deep enough to throw both lots into.

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  14. First comment "£275 seems ridiculously cheap"

    Yes I agree !

    Who negotiated this figure ? The Law Society itself ?

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  15. Ms Jack said : “The SLCC’s budget should reflect what is happening more widely in the economy, particularly given the financial difficulties solicitors have faced during the recession.
    -------------------------------------
    MS JACK, WHAT ABOUT THE FINANCIAL HARDSHIP FACED BY VICTIMS OF YOUR BROTHERHOOD, WOULD YOU LIKE TO COMMENT ON THIS?

    ReplyDelete

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