1. LEGAL SERVICES CONSUMER PANEL | October 2014 Elisabeth Davies Consumer Issues in Legal Services Legal Wales Conference Friday 10 October 2014 Bangor University LEGAL SERVICES CONSUMER PANEL | October 2014

2. Who we are, what we do Providing independent advice on the consumer interest on legal services regulation issues –Helping the Legal Services Board to “get things right first time” working as a critical friend from the inside Representing different types of consumer –Prioritising those who are less able to give voice to their own interests – “vulnerable consumers” 8 lay members plus a small secretariat

3. LEGAL SERVICES CONSUMER PANEL | October 2014 Statutory basis Legal Services Act 2007 Geographical remit: England and Wales Powers –To make representations on any issue –To trigger an investigation in specific areas –To publish our advice Duties on others –Legal Services Board must give reasons when it disagrees with our policy advice –Mandatory consultee on specific activities

4. LEGAL SERVICES CONSUMER PANEL | October 2014 Our vision A market where everyone can access high quality and affordable legal services that meet their needs: –Responsive services –High quality advice –A diverse workforce that understands its diverse clients –Quick, fair and cost-effective complaints handling –Consumers placed at the heart of regulation

5. LEGAL SERVICES CONSUMER PANEL | October 2014 A strong evidence base Annual Tracker Survey: –Nationally representative sample of adults and sample of users of legal services –Booster samples for Wales and BME groups Consumer Impact Report 2014: –Our flagship report –Assesses the legal services reforms from a consumer perspective –The third edition will be published end of this year

6. LEGAL SERVICES CONSUMER PANEL | October 2014 A changing market for consumers?

7. LEGAL SERVICES CONSUMER PANEL | October 2014 What’s changed for consumers Compared to 2011 data consumers are: – happier with the available choice – shop around more – are more satisfied with value for money Fixed fees have risen in use Online delivery is becoming more prevalent Almost 1 in 5 transactions involve some degree of unbundling

8. LEGAL SERVICES CONSUMER PANEL | October 2014 Online service delivery Consumer demand –Around 1/2 services delivered remotely (LSCP Tracker) –47% consumers say online delivery important (Peppermint) –23% law firms currently offer 24/7 interactive legal online services and further 26% plan to within a year (Peppermint) Examples of new services –Online tracking, case management –Automated document services, e.g. wills, divorce –‘Ask an expert’ piece-rate or subscription services –Guided choices, e.g. roadtrafficrepresentation –Apps for conveyancing, PI claims etc

9. LEGAL SERVICES CONSUMER PANEL | October 2014 Challenges facing consumers Making informed comparisons on quality is difficult Levels of trust in lawyers is low – How low? High numbers of ‘silent sufferers’ - 44% of dissatisfied customers do nothing

10. LEGAL SERVICES CONSUMER PANEL | October 2014 Trust in lawyers

11. LEGAL SERVICES CONSUMER PANEL | October 2014 Silent sufferers

12. LEGAL SERVICES CONSUMER PANEL | October 2014 Challenges facing consumers Research by the Legal Services Board suggests that just 21% of people with a problem who seek advice get it from a regulated lawyer New challenges around balancing access to justice and consumer protection Unregulated businesses are emerging to fill gaps

13. LEGAL SERVICES CONSUMER PANEL | October 2014 What’s changed for Welsh consumers Less likely to have used any legal services within the last two years More likely to have made a will More confident in regulation: they say they are more likely to trust lawyers, feel their consumer rights are protected and have confidence to complain More likely to use small local law firms and to ask lawyers to do all the work rather than do some of the legal work themselves More likely to use a fixed-fee deal More satisfied with the outcome of their case and service received

14. LEGAL SERVICES CONSUMER PANEL | October 2014 Challenges facing consumers in Wales Importance of physical access to providers The implications of the jagged edges Online service provision – implications of location Welsh language needs - SRA proposals to change their training requirements

15. LEGAL SERVICES CONSUMER PANEL | October 2014 What about the future? What developments in the period to 2020 are most likely to have an impact on the consumers of legal services? Four areas we consider will have the most profound impacts on consumers: –Self-lawyering –The influence of technology –Changes in consumer behaviour –Market changes

16. LEGAL SERVICES CONSUMER PANEL | October 2014 Future consumer issues Core challenge - extend access to justice to those currently excluded from the market because they cannot afford legal services Consumers will seek alternatives to lawyers or use them in different ways More services will be delivered by unregulated businesses and providers Calls will grow for more radical solutions which cut out lawyers, such as an inquisitorial style of justice and online dispute resolution