Rapid growth of QualitySolicitors network, which announced 100 new branches last month, is shaking up the industry
Shoppers on the high streets of England and Wales may have spotted the tentative signs of a revolution in legal services: the emergence of the first national chain of law firms.
While this might not qualify as groundbreaking in most sectors, in the sedate world of the law the exponential growth of QualitySolicitors ? which is less than a year old and announced 100 new branches last month alone ? represents a seismic shift in the delivery of legal services.
From QualitySolicitors Howlett Clarke in Brighton to QualitySolicitors Lockings in Hull, the network is arguably the first-ever legal services "brand", complete with distinctive shopfronts for its 170 branches, supported by a national television campaign and its promise of a better deal for consumers ("free first consultation... no hidden costs ... same-day response ... direct lawyer contact...").
Each firm has a complete corporate rebranding makeover, from the name above the door to the stationery. The opening of the Bristol branch was presided over by The X Factor's Stacey Solomon singing Who Wants to Live Forever.
For consumers looking for legal help, the process is "difficult, confusing, uncertain, stressful, often, intimidating", according to Craig Holt, chief executive of QualitySolicitors. "There are far too many law firms in every town and too little discernible difference."
One survey last year revealed that more than three-quarters of consumers (77%) who used lawyers in the past five years did not shop around. Holt argues that choosing a lawyer is "something of an uncomfortable lottery", relying on Yellow Pages or "vague suggestions" from friends.
But the legal profession is in the latter stages of a countdown to its own version of Big Bang ? the mass deregulation of financial services and banking in the 1980s ? which may result in even more services becoming available.
In less than six months, non-law businesses will be able to move into legal services. Retail giants, such as the Co-op, banks such as the Halifax, and consumer groups such as Which?, are all lining up and wanting a piece of the action.
The introduction of non-law businesses ? known as alternative business structures or ABSs, as of 6 October under the Legal Services Act ? is, as one commentator put it, set to "blow apart the established conventions" of the law.
It is a hugely divisive issue for lawyers, especially those working in high-street firms who fear competition from established brands will do for them what out-of-town superstores did for corner shops. Research by pollster YouGov last month revealed that three in five consumers would happily go to household consumer brands (19% chose Barclays, 18% the Co-op and AA, and 15% said Virgin).
As an indicator of how controversial this is for lawyers, the Law Society, the solicitors' representative body, only agreed last month that its regulatory arm, the Solicitors Regulation Authority, would become a licensing authority for ABSs, following a fiercely argued debate in which the smaller firms threatened a last minute, two-fingers to the reform.
But Big Bang or damp squib, what does this mean for consumers? Should they expect a better deal? "They should, but I wouldn't expect it on 7 October," said Crispin Passmore, strategy director at the Legal Services Board, which overseas regulation of all lawyers. "It's easy to exaggerate the Big Bang effect, but it's also easy to underestimate long-term change."
Allowing for new business models is about removing "anti-competitive restrictions" that are "relics from a by-gone age", he said. "The regulators will intervene when there is a risk of consumer detriment, but otherwise the objective is to allow lawyers to respond to consumer demand in more competitive and imaginative ways."
The likes of the Co-op and HBOS have been busy exploring how they can extend their services. The Co-operative Legal Services began five years ago, today employs 370 people and aims to be one of the first ABSs with a huge potential client base: the Co-op has more than 5.2 million members with access to legal advice, in addition to 1.3m insurance policyholders.
Eddie Ryan, managing director of Co-op legal services, points out "about 15 million people walk through the store every week" and it has 300 bank branches where it could deliver legal services.
Shoppers may have already noticed its legal services heavily promoted through in-store radio and till screen displays. "We will add credibility and introduce a trusted brand to the market," said Ryan.
Halifax Legal Express offers three levels of service: "self-serve", where clients can use one of 150 DIY legal documents; "lawyer review" with oversight by the legal team; and "lawyer service" with bespoke input from a lawyer. A will for a married couple is �48, �74 or �99, depending on level of service.
Richard Cohen is a solicitor and executive chairman of the legal IT specialist Epoq, which works with many of the institutions, including HBOS, AA, Saga, NatWest, RBS and Allianz, already operating in the legal services market.
"People want accessibility, stronger customer-service standards and, above all, transparency and certainty on costs ? they don't want to be stung by huge bills. You can't legislate for that," he said.
Comparison sites will work for certain services such as conveyancing and wills, but are "more difficult, but by no means impossible, for others", reckons Professor Richard Moorhead, deputy head of Cardiff Law School. "Consumers want clear, predictable cost," he says. "That's one price, inclusive of VAT and other costs."
He is less persuaded by the auction sites: "They're dangerous. Consumers don't have any idea where the quality floor is. Lawyers need to ensure that there are far more robust signals of quality in the market than currently exist."
The meerkats of the legal world
A striking feature of this new landscape has been the arrival of comparison websites similar to Comparethemarket.com and Moneysupermarket.com.
Wigster.com (featuring a cartoon character as a judge's wig) claims to be the UK's first "genuine consumer price comparison" website offering "instant and comprehensive evaluation of law firms". Founder Nick Miller claims: "We're aiming to be the meerkats of the legal world."
CompareLegalCosts.com compares lawyers' fixed fees, while bid4fees.com is an auction site (like eBay) where lawyers bid for listed cases.
Comparison sites will work for certain services such as conveyancing and wills, but are "more difficult, but by no means impossible, for others", reckons Professor Richard Moorhead, deputy head at Cardiff Law School. "Consumers want clear, predictable cost. That's one price, inclusive of VAT and other costs."
He is less persuaded of the auction sites: "They're dangerous. Consumers don't have any idea where the quality floor is. Lawyers need to ensure that there are far more robust signals of quality in the market than currently exist."
Source: http://www.guardian.co.uk/money/2011/apr/03/uks-first-chain-high-street-lawyers
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