Law Society notices

Fair trading and solicitorsSolicitors who engage in unfair business practices now face not only potential discipline by the Office for the Supervision of Solicitors (OSS) but regulatory action by the Office of Fair Trading (OFT).

The Law Society holds a group consumer credit licence enabling solicitors to carry out types of consumer credit work (such as debt collecting, credit brokerage including arranging mortgages for conveyancing clients and referring clients to credit agencies and debt counselling, such as assisting clients who are in financial difficulties) which would normally require an individual consumer credit licence.

This is a significant advantage to the profession.

The OFT has the power to exclude solicitors from the group licence, and thus effectively prevent them from carrying out these types of work, in various circumstances, including where the solicitor has: l Been convicted of an offence of dishonesty or violence;l Breached the Consumer Credit Act 1974 or some related law;l Been found to have acted in an unfairly discriminatory manner;l Engaged in deceitful, oppressive, unfair or improper business practices whether they are unlawful or not.

Of course, the OSS would itself be concerned about many of these issues and solicitors frequently face disciplinary action for similar reasons.

The Law Society has entered into a memorandum of understanding with the OFT under which cases can be referred to the OFT to decide whether to exclude a solicitor from the group licence.

The profession must be aware that one potential consequence of inadequate professional service is exclusion from the group consumer credit licence.

The OSS has arranged to identify and deal with firms which continually give rise to complaints and concerns about their service levels and conduct.

Firms will, where appropriate, be offered assistance and guidance.

But firms identified as representing a threat to clients and others are likely to face disciplinary action.