Even for the most diligent law firm that receives very few complaints, dealing with the occasional dissatisfied client or regulatory query is an unfortunate and often unavoidable part of providing legal services. However, how and the speed at which a firm handles these complaints is not only under scrutiny from the Solicitors Regulation Authority (SRA) – read our previous article: The Need For Efficient Complaint Handling Procedures – but can significantly affect client trust, staff resources, and the firm’s overall efficiency. Furthermore, the handling of client complaints is a cost which cannot be recovered and is an unfortunate diversion for senior staff and fee earners.

This raises a key question: Is it efficient to handle client complaints in-house?

Handling Client Complaints In-House

While handling the client complaint process in-house can provide a sense of overall control and may seem cost-effective, there are challenges and hidden costs that should be considered.

Client complaints should be dealt with immediately, which often requires the attention of fee earners and senior staff who are busy with billable work, making complaint handling a costly distraction. It may also be difficult for staff to remain impartial if the complaint has been directed at someone they know within the firm or concerns work they handled directly.

How quickly a complaint can be dealt with is another crucial consideration. Firms must take complaints seriously, and the quicker they are dealt with, the easier they are to resolve. In-house staff may have multiple priorities, which can delay responses and compromise the thoroughness of the investigation into the complaint.

Slow response times and inefficient handling of a complaint can cause further frustration and increase the risk of the complaint being escalated to the Legal Ombudsman or the SRA.

Outsourced Client Complaints Handling and Support

The assistance of an external expert who specialises in handling, managing, and resolving complaints is both a cost-effective and focused way of ensuring that any complaints received by your firm are resolved effectively. Complaints managed by an outsourced specialist can be dealt with quickly, and independent experts can maintain a clear and objective perspective. Having a neutral third party can also help de-escalate tensions early on as clients appreciate having a dedicated specialist to communicate their concerns with.

Enlisting the assistance of an outsourced provider can also bring specialist expertise in regulatory requirements and best practice, reducing the risk of errors that could create further problems or attract scrutiny from the regulator. For smaller firms or sole practitioners that do not have a dedicated compliance team, or for larger legal practices that want to free up senior staff for higher-value work, this can be particularly beneficial.

So, in response to our original question, is it efficient to handle client complaints in-house? The answer ultimately depends on the availability of internal resources, the volume of complaints, and the complexity of the work the firm handles. However, it is evident that when complaints are dealt with quickly and objectively, they are easier to resolve, leading to improved outcomes for both the client and the firm.  

Why Law Firms Are Choosing Our Outsourced Solutions

At the Regulation and Compliance Office (RACO), our Complaint Management Service has been designed to provide firms with an expert solution that operates impartially and independently, but always in the best interests of the firm and its clients. Our Service covers the initial intimation of a complaint, the investigation and liaison with the client through to the final resolution.

Core elements of the Complaint Management Service are: – 

1. Cost-Effective – It is a cost-effective way to manage complaints, and fee earners can focus on delivering service rather than non-fee-earning tasks that do not generate fees. 
2. Responsive – We are responsive to the needs of our clients and recognise that complaints must be dealt with quickly and efficiently to avoid escalation. 
3. Impartial expertise – Our advice and service are impartial and will help deliver a quick and effective resolution of complaints. Clients will respect that an independent expert is reviewing their complaint, which will often result in a conciliatory approach with less emotion. 
4. Effective Resolution – Through effective management, we will seek to resolve the complaint with a minimum negative impact on the firm and in the best interests of the firm and the client. 
5. Avoidance of Escalation – The focus of our service is to avoid escalation of a complaint to The Legal Ombudsmen or The Solicitors Regulation Authority, where costs, fines, and damages can increase substantially. 
6. Technical Advice – Our complaint handlers understand legal services and their provision. Where the complaint is of a purely technical nature, we will work with your technicians to draft the appropriate response. 
7. Partnership – We will not commit the firm to a direction with which they are not comfortable with. Our service is advisory, and whilst we will guide the firm on the appropriate action to take to resolve the matter, we will always be sensitive to the firm’s own requirements. 
8. Compliance – The management of complaints by RACO will ensure the firm is meeting its regulatory obligations. 
9. The Legal Ombudsmen – We will represent you if a complaint is escalated to The Legal Ombudsmen, and where necessary, ensure that any penalty action is minimised, and where appropriate, disputed. 

Our service has been designed to ensure that firms do not suffer negative consequences of complaints through cost effective management.

Access detailed service and costs information on this service by downloading our brochure here:  

RACO Complaint Management Service  

Get In Touch  

To ask any questions about the Regulation and Compliance Office and how we can support your Law Firm, please call us on 0203 985 8550, complete the online enquiry form, or email us info@regulationandcomplianceoffice.co.uk 

Useful information

The Law Society recently issued updated guidance on handling complaints, which can be accessed here: https://www.lawsociety.org.uk/topics/client-care/handling-complaints