1. Lack of Competition
The Competition Authority made 29 recommendations in 2005 most of which have not been implemented. http://bit.ly/f4pdj8
Notwithstanding some movement in specific areas (PIAB, PRTB and simplified procedures provided for in the Courts Act deserve mention) key recommendations continue to be overlooked:
Of the 15 cost saving measures recommended only 1 has been implemented. http://bit.ly/95Cjbe
-Legal Services Bill has not been introduced
-Independent Legal Services Commission has not been set up.
-No Integration of non lawyers to speed up reform and bring new ideas.
2. Lack of transparency about fees.
Not only do clients not know what the standard rates are for solicitors but many firms are unsure about other firms fees. There is a taboo about discussing fee levels openly. An online legal marketplace similar to what has happened in insurance and travel would create downward pressure on fees.
3. Internal Big Firm Pressure to Bill due to High Rents and Partners Salaries.
In large firms there is still huge pressure put on solicitors to bill the amount that they need to meet their rents, salaries and other overheads instead of focusing on how to bring better value to the client. Their cost base is still too high. Hourly Billing should be replaced with some of the new charging models suggested below.
4. Resistance to alternative fee models now widely used elsewhere.
Abroad, there is significant movement (as a result of client pressure) away from hourly billing, to billing for example on the basis of;
* Fixed fees per case or per time period (week or month),
* Rate caps (max hourly rate) or
* Fixed fee per deliver
* Incentives for completing matters quickly and efficiently.
Clients can inform themselves about these widely used alternative approaches to legal fees on authoritative websites such as www.acc.com.( search for value based fee primer). Access Legal works with these new charging models in order to best suit the clients requirements.
5. The legal profession still regulates itself.
A significant part of the Competition Authority Report focuses on the dangers of self regulation. There is ample evidence from the financial crisis that where professions or industries operate with light or no regulatory oversight, this can lead uncompetitive and anti-consumer practices going unchecked. The wall needs to come down so the public can see how the legal profession works and what they are really paying for.
