Increases in LeO fees could incentivise complaint payoffs, CILEX warns
Summary
CILEX has raised concerns about proposed increases to Legal Ombudsman fees, warning that a tiered charging structure could encourage firms to make unwarranted payments to complainants to avoid higher costs. The consultation also proposes stricter admissibility thresholds and new timing rules, while the Law Society has separately warned the changes could reduce confidence in the complaints process.
Why it matters
Residential property surveyors may be affected where complaints arise from property advice, valuations, or related professional services that fall within the Legal Ombudsman scheme. The proposals could influence how firms handle complaints, settle disputes, and manage risk around consumer redress and complaint escalation.
Key points
- LeO is consulting on a staged fee model with higher charges for cases that progress further.
- CILEX warns the structure could incentivise firms to pay out on complaints that are not meritorious.
- The consultation also proposes a 'serious detriment' threshold and a 12-year long-stop for complaints.
- CILEX supports transparency measures such as publication of final decisions.
- The Law Society says the proposals could undermine confidence in the complaints process.
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