The Law Society's compliance board has issued a statement regarding firms seeking to charge clients for dealing with complaints under practice rule 15 - the rule that requires firms to have an in-house complaints handling function.

In the opinion of the board, this practice is wholly objectionable, even if it is intended that costs should only be recovered in the event of the complaint being found to be without merit.

The board's view is that the dealing with complaints under rule 15 is a regulatory requirement on firms and not a matter for which a charge to clients can properly be made.

Should a separate charge be made, it will be disallowed in the adjudication of any complaint of poor service and is likely to be viewed as having compounded the effect of the poor service on the client.

Any firms that make or threaten such charges are also likely to be subject to disciplinary action.

Solicitors operate under a group licence granted to the Law Society by the Office of Fair Trading (OFT) under the Consumer Credit Act.

The OFT has the power to disapply the benefit of the group licence to firms that operate unfair practices, and it is likely that the OFT would regard such a charge as operating to the consumer's detriment.