CMA issues advice to consumers and providers over unregulated legal services

The Competition and Markets Authority (CMA) has written to seven providers of unregulated legal services cautioning them against using “particularly concerning practices” such as aggressive upselling, the refusal of refunds and failing to respond to complaints.

It has also issued guidance for unregulated legal service providers and published consumer guides for people making a will or going through a divorce. The “significant consumer risks” associated with pre-paid probate services are also highlighted in them.

The moves follow the CMA’s investigation into unregulated will writing, online divorce and pre-paid probate services, which was launched in July 2023.

The CMA said it was taking action “to protect the growing number of UK consumers who are opting for alternatives to high street solicitors when making a will or getting divorced”.

It went on: “Businesses which provide these unregulated legal services are a growing part of the legal sector and it is crucial they understand and comply with their consumer protection obligations. People buying these services need to be sure they are getting a fair deal.”

The CMA said the currently unnamed firms who received a letter “should acknowledge it and act on any recommendations to review and revise their contract terms and practices”. If they do not, they could face a formal investigation.

In an open letter to the unregulated legal services sector to highlight the guidance, following a consultation on a draft earlier this year, the CMA said its investigation had “identified concerns that some traders in the sector may not be complying fully with their responsibilities to consumers under consumer protection law”.

Hayley Fletcher, the CMA’s interim senior director for consumer protection, said: “Alternatives to conventional high street law firms can offer convenient services for people – and when day-to-day budgets are already under pressure, they can be a more cost-effective option.

“Those offering these types of legal services often meet their customers at some of the most challenging times in life, so it’s particularly important that a difficult time is not made harder by misleading or unfair practices.

“Our new guides will help empower consumers to ask businesses the right questions before they buy and give businesses an opportunity to get their house in order.

“To ensure they comply with the law, we expect businesses in the sector to read the new guidance and make the necessary changes to their terms and practices. Those who don’t could face enforcement action.”