Unregulated law firms: Will writers and divorce and probate services must treat their clients fairly

Editors at Will and other legal services firms have been hit with a warning over “misleading or aggressive” trading practices and threatened with a formal investigation by the Competition and Markets Authority.

The watchdog gave direction to seven unidentified firms on how to treat clients fairly and openly published its letter to unregulated legal providers.

It warns companies not to resort to “particularly concerning practices” when people are at the most difficult times of their lives.

The CMA attempts to stamp out bad behavior such as aggressive upselling, refusal of refunds and failure to respond to complaints.

Its warning is aimed at legal businesses, including prepaid probate services – which come with a specific and stern warning explained below – and those offering online divorce and will-writing.

Will’s drafting services have become a cheap and increasingly popular alternative to high street lawyers.

Some are reputable, adhere to codes of conduct and have lawyers to ensure the work is done correctly – see the box below for what to check before using one.

The CMA says it wants to protect the growing number of consumers who opt for unregulated legal services.

“It is essential that they understand and respect their consumer protection obligations,” he says. “People purchasing these services should be sure they are getting a fair price.”

The CMA adds: “Those who receive a letter must acknowledge receipt and act on any recommendations to review and revise their contractual terms and practices.

“While the CMA is expected to receive stronger enforcement powers from next spring, if concerns are not addressed, companies could face a formal investigation.”

The new Digital Markets, Competition and Consumer Act will allow the CMA to determine whether consumer law has been breached, impose fines and order businesses to pay compensation to customers.

The watchdog has also published guides for clients on the level of service they should expect from unregulated will writers and divorce service providers, as well as sources of help in case of problems.

Meanwhile, probate is the formal process of taking control of an estate after a person’s death.

The CMA says: “Consumers are urged to think carefully before purchasing prepaid probate plans as they carry significant consumer protection risks, including that the business could cease trading before death of the consumer. »

And this refers to an earlier warning to the public about prepaid approval from the Financial Conduct Authority, which says: “We strongly advise you to carefully consider whether these products meet your needs and offer value before purchasing. buy, as there is no regulatory protection in this area. place for you.

Sarah Manuel, head of professional standards at probate industry body STEP, welcomes the CMA’s action to protect consumers from poor practice in the will-writing and legal services industry.

“We fully support their efforts to put unregulated providers on notice and introduce stronger enforcement powers.” We also welcome the public’s advice on what to consider when purchasing will writing services.

Manuel warns: “Anyone can set themselves up as a will writer and bad advice can cause considerable distress, leaving grieving families to deal with the financial and emotional consequences.

“We hear too often from the public and our members about the financial and emotional impact of poor advice from dishonest, unqualified and incompetent will writers.”

She adds that in a STEP survey of members last year, 79 per cent had encountered wills containing errors and 54 per cent were aware of other companies making false declarations, for example to avoid nursing home fees. retirement.

“We remain committed to ensuring these will preparations are properly qualified.

“STEP sets standards for our members who draft wills, trusts and similar legal documents through our qualifications, will code and other tools. »

Manuel says STEP will continue to push for regulation of the will-writing industry, as well as high-quality training and greater recognition of specialist qualifications.

Michael Culver, president of the Association of Lifetime Lawyers and boss of Culver Law, also welcomes the CMA’s decision, but questions whether it goes far enough.

“While many will writing firms, particularly those within the Society of Will Writers, must adhere to similar standards to law firms, others do not.

“These companies often make misleading claims about savings in care costs, inheritance tax and probate fees, with little consumer protection. The new guidelines and strengthened enforcement powers are therefore a positive step.

However, he adds: “Wills and Lasting Powers of Attorney are crucial legal documents, often drawn up in emotional moments or by vulnerable people.

“It is time for these services to become a reserved legal activity, as in other jurisdictions, to better protect consumers.

“Additionally, there is no mention of the risks associated with DIY will kits, which can lead to costly legal issues and expose vulnerable people to fraud and abuse.”