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  4. Nil rate band comes into SLCC complaints levy guidance

Nil rate band comes into SLCC complaints levy guidance

6th September 2016 | professional regulation

The Scottish Legal Complaints Commission (SLCC) has updated its internal guidance on the application of the complaints levy, the Law Society of Scotland has reported.

A note on the Society's website states that while there is no change to the maximum amount of complaints levy that can be imposed, a new nil rate band represents a further step towards a "polluter pays" approach.

The complaints levy that may be imposed remains within the existing tariff range of nil to £3,500, but determination committees will now normally not impose any complaints levy where the practitioner has agreed to the settlement proposals in the investigation report and the committee does not uphold any additional or different issues, or does not award higher compensation or direct a more severe abatement of fees, or does not make any additional directions to what was recommended in that report.

It will also be used where the practitioner has, before the investigation stage, already made an equal or higher offer than the subsequently proposed settlement.

The SLCC may still impose a complaints levy where the committee is dissatisfied with the approach and behaviour of the practitioner, as set out para 6.3 of its policy.

Under the previous guidance, committees would sometimes impose a fairly nominal complaints levy, say of between £50 to £250. This was often uneconomic to invoice, pursue and collect, hence the new policy.

The nil rate band replaces the previous £0-750 band. Other tariff bands have been adjusted to £750-£1,500 (same as before), £1,500-£2,250 (previously £1,500-£2,000), then £2,250-£3,500 (previously £2,000 -£3,500).

Where a practitioner accepts a settlement, and the complainer does not, the lawyer will benefit from the new nil band. However, where they do not accept settlement, and the issue is upheld, they may now pay a little more.

This change will assist the SLCC to uphold its policy that "the polluter should pay", thus helping to apply downward pressure on annual levy rises for all practitioners.

The new guidance will apply to all complaints that go to determination committees from 1 September 2016.

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