Outsourcing of complaints handling to private practice law firms might be unlawful, according to the Legal Services Ombudsman this week as she cast doubt on one of the Law Society’s methods of dealing with consumer redress.

The ombudsman, Zahida Manzoor, spoke to the Gazette following the release last week of her annual report (see [2004] Gazette 8 July, I). She said: ‘This [outsourcing] might not be something that the Law Society can do legally. Arguably, it should always be the Society that takes the responsibility for the final decision in relation to a complaint. And indeed, there is a public perception issue here of how the consumer feels about a complaint being outsourced to a law firm.’


A Law Society spokesman confirmed that outsourcing was a technique used in complaints handling, but he played down its significance. ‘The idea at the moment is not actively being pursued,’ he said. According to the spokesman, about 225 files had been outsourced to three law firms – Hammonds in Birmingham, Nelson & Co in Leeds and Weightman Vizards in Liverpool. He also emphasised that personnel at the practices received appropriate training.


Law Society chief executive Janet Paraskeva said: ‘External solicitors have been used in the investigation of certain types of complaint for many years. We have never tried to disown responsibility for the final decision on a complaint and would never do so.’


Following her annual report, Ms Manzoor – who is also the Legal Services Complaints Commissioner – reiterated that she was impressed with the progress the Law Society had made. However, she suggested that the rise in ex gratia payments made by the Society to complainants was potentially a cause for concern.


Ms Paraskeva said: ‘We do not rely on [the payments] in any way – if anything they are a big incentive for us to improve.’


See Interview "Manzoor sets out dual role strategy"