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  4. SLCC finds many errors in terms of business letters

SLCC finds many errors in terms of business letters

3rd May 2023 | professional regulation

Variable levels of clarity and accessibility in solicitors' terms of business letters have been found by the Scottish Legal Complaints Commission, in a report published today.

The SLCC looked at a sample of 80 letters and considered to what extent they complied with Law Society of Scotland rules on client communications and whether an average client would be likely to read and understand them.

It reports generally good compliance with the basic requirements on client communications. However, it said its sample showed a real variation in the extent to which firms made their terms of business letters clear, accessible, accurate, and a useful tool for effective communication with the client.

On accuracy, the SLCC concludes that firms need to do more to ensure their terms are up-to-date, relevant to the instructions and correct in detail. Fewer than 15% in the sample correctly cited the SLCC and its contact details, despite this having been compulsory since February 2020, and two thirds cited time limits changed in 2017.

It also believes the wording used by some firms may not comply with Money Laundering Regulations or may be inconsistent with current Law Society of Scotland Guidance.

The report makes a number of recommendations:

  • Ensure that your terms and the standard of work that you do both match up to your marketing. 
  • Treat your terms as your first and an ongoing opportunity to communicate well with your client. Use them to set out how you’ll work together.
  • As far as possible, try to make your terms clear, concise and easy to read. Try to imagine how a friend or family member without any legal knowledge would read them. 
  • Take extra care in explaining fees and charging – many of the complaints stem from misunderstandings and miscommunication here. 
  • Check the accuracy of references to the right to complain to your firm and to the SLCC. 

Susan Williams, the SLCC’s Best Practice adviser, commented: "Terms of business letters that are relevant, accessible and accurate can help to avoid misunderstandings and miscommunication, two of the most common causes of complaints.

"While some firms had worked hard to make their terms clear and accessible, we felt only about a third of our sample were likely to be easily read and understood by clients. We found the sections on fees and charging were often particularly likely to be confusing for clients.

"We also thought firms could to more to personalise the terms they issue to make them more relevant to the transaction, and therefore more useful to the client, as well as cutting out irrelevant information."

She added: "We were particularly concerned to find that less than 15% of our sample gave correct information to clients about how to make a complaint to the SLCC."

Describing the terms of business letter as an important early opportunity to communicate well with a client, she noted: "As far as possible they should be clear, concise and easy to read. Where that is the case, they can be a valuable communications and risk management tool."

Ms Williams concluded by urging firms to "look again at their own letters and take the time to update and improve them for the benefit of their clients and their business".

Access the report here.

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