The competition watchdog has launched an investigation into firms offering will writing and other legal services such as “quickie” divorces, following concerns that not all are complying with consumer protection law.
The Competition and Markets Authority (CMA) is keen to hear about people’s experiences when buying these services and products, particularly from unregulated providers.
It said consumers now have many alternatives to the conventional law firms on the high street, particularly for services where the adviser does not need to be a solicitor.
Alternative providers very often offer services that are innovative, convenient and possibly cheaper, but where they are unregulated, it becomes all the more important that normal consumer protection laws are complied with, the CMA said.
It has identified three main areas of concern involving potential risk to customers – will writing, pre-paid probate plans and online divorce services.
Concerns over will writing include consumers potentially being misled by adverts offering an extremely low initial fee for advice but not indicating that final costs can increase significantly.
Rising living costs mean people are watching their spending, so shopping around for a more affordable option is attractive and sometimes a necessity— Sarah Cardell, CMA
Meanwhile, pre-paid probate plans are a new development in the market where customers pay set fees upfront for probate – the legal process of managing someone’s estate when they die.
They do so in the hope that, following their death, their families will not be required to pay anything else.
Concerns include pressure-selling techniques being used on elderly and other vulnerable people and a lack of transparency about what costs are covered, the CMA said.
Regarding online divorce, the CMA said so-called “quickie” divorce services have grown in popularity since the Covid-19 lockdown.
Concerns include misleading claims about the simplicity of the process and prices, which leave customers unclear about what they can be helped with or what they are paying for.
The CMA is also concerned that, if a company ceases to operate, there is a risk that customers’ money or important documents, such as their will, may be lost.
These may not be frequent purchases, but they are life-changing— Sarah Cardell, CMA
Sarah Cardell, chief executive of the CMA, said: “These services are essential to people, often at the most challenging times in their lives. The CMA is aware that rising living costs mean people are watching their spending, so shopping around for a more affordable option is attractive and sometimes a necessity.
“These may not be frequent purchases, but they are life-changing. That’s why it’s so important that we investigate so that people can select the right legal service for them – for divorce or probate or will-writing – with confidence.
“It’s essential that firms get the basics right, including complying with general consumer law which applies to all traders. Customers must get a fair deal.”
The CMA will write to some firms offering these services to seek further information about their practices.
Any interested parties, such as consumer advocates, professional bodies, trade associations or any consumers with experience of using someone who is not a solicitor to provide a will, online divorce service or pre-paid probate plan can send responses to UnregulatedLegalServicesTeam@cma.gov.uk by September 4 2023.
