That's the dream (or nightmare) which some anticipate emerging as a result of the Legal Services Act coming in to force this month, but there's has been little sign of 'Tesco Law' thus far.
From 6 October, companies owned and controlled by non-lawyers are able to offer legal services direct to the public. These changes are intended to open up the legal market-place to greater competition.
The new law now enables companies to operate as ‘Alternative Business Structures’ (ABSs) and offer Cheap Conveyancing Quotes, probate, divorce and other legal work in competition with firms of Solicitors and Licensed Conveyancers.
However, restrictions do still apply. They will need to be licensed by an approved regulator, and will need to employ qualified professionals. How, and when, this licensing will emerge is another matter.
Much has been made of these so-called ‘Tesco Law’ companies, operating out of shops and supermarkets. But this possibility has already seen several firms of Solicitors join the umbrella brand of Quality Solicitors, which operates enquiry points in branches of W.H. Smiths.
It's worth noting that Tesco themselves have dismissed any immediate plans to pursue the provision of legal services.
How much difference these changes will make to consumers remains to be seen. So far only the Council for Licensed Conveyancers has been authorised to issue licenses, and just one has actually been issued at present.
CLC Chief Executive Victor Olowe said:
“We believe that ABS is good news for consumers. Opening up the market will offer people a greater choice of legal service provider, while at the same time our new risk-based and outcomes-focussed approach to regulation will help ensure high standards of service and will maximise consumer protection.”
But for most consumers, the real question is 'will this make legal services cheaper?' Certainly the Legal Services Board hopes so, and their Chairman, David Edmonds comments:
"Greater freedom to compete and innovate should bring major benefits for consumers."
As far as Cheap Conveyancing is concerned, it is difficult to see Conveyancing Fees dropping to any significant extent. There is intense competition in the sector at present, and it is very easy to find low-cost deals. Whether new companies can provide the service any cheaper and still provide a satisfactory level of service seems doubtful.
The main problem facing Conveyancing is not who owns the firm doing the Property Legal work, but how many additional Conveyancing Fees to they charge in the small print.
Aside from Conveyancing Solicitors charging these unexpected Hidden Fees, the Government could do the following to lower the cost of Conveyancing:
As the act also enables non-lawyers to invest in law firms, it is likely that existing firms of Solicitors will be seeking additional sources of capital to enable them to expand. We will no doubt see increased investment in marketing campaigns to attract more clients, as well firms looking to improve their public profile.
That being said, the impact on the consumer has so far been negligible. Despite an inital burst of interest, it now seems that it will be some time before the true impact of the Legal Services Act is known.
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