CMA seeks cases for study of unregulated legal services

The Competition and Markets Authority (CMA) is calling for experiences of members of the public as it launches a new investigation into unregulated will writing and probate services, and into online divorce. 

It follows concerns that not all firms that offer such services are complying with consumer protection law.

While there are differences in the legal regimes that apply in the countries of the UK, initial research by the CMA has identified three main areas of concern involving potential risk to customers and possible breaches of consumer protection law:

• Will-writing: anyone can legally write a will, and consumers may be misled by advertising which offers an extremely low initial fee for advice but does not indicate that final costs can increase significantly. Potentially unfair contract terms may also be used, such as exclusions of liability, failure to provide cancellation rights, and terms which automatically appoint the firm as executor (often for a fee). There have also been reports of pressure selling and coercion of vulnerable customers.
• Pre-paid probate plans: these are a new development in the market where customers pay set fees upfront for the legal process of managing the estate when someone dies. Concerns include pressure selling techniques being used on elderly and other vulnerable people; lack of transparency about what costs are covered; plans that are unnecessary or fail to serve their purpose; and lack of customer awareness that their money may not be adequately protected, even if held in trust.
• Online divorce: so-called “quickie” divorce services have grown in popularity since the Covid-19 lockdown. Concerns include: misleading claims about both the simplicity of the process and prices; and inadequate quality of service, including firms using the wrong forms, entering incorrect details, sending papers to the court late, and not communicating efficiently with customers.

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.

Sarah Cardell, chief executive of the CMA, commented: “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 is also writing to a number of firms that offer these services in order to seek further information about their practices. Any interested parties, like 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 their responses to UnregulatedLegalServicesTeam@cma.gov.uk by 4 September 2023.