Irwin Mitchell was quick to launch new initiatives with the Automobile Association (AA) and RAC last week, just days after the Legal Services Bill received Royal Assent.
The national firm is aligning itself with leading high street brands that are seeking to break into the legal sector when the Legal Services Act takes effect.
Head of insurance Joe Simpson said: “It’s our stated aim to become the leading supplier of commoditised legal services. We want to develop Irwin Mitchell’s relationship with the consumer and broaden distribution channels.” The AA launched Home Buyer Advice last week, a service aimed at giving free legal advice to its client base. Irwin Mitchell will advise on will writing and Hammonds Direct will provide conveyancing advice.
Irwin Mitchell will also be providing a will writing service for the AA’s arch-rival RAC. The RAC said that “all options were on the table” following the passing of the act and it would be “significantly” broadening its business relationship with Irwin Mitchell.
While the Legal Services Act makes provisions for businesses to take a stake in law firms, these relationships are operating on a referral basis.
legal services act
By 2030 the high street is going to look very different and I doubt we will be seeing as many solicitors. There will be huge consolidation and IM might lead the way. Or it could be consolidated itself. Lawyers are afraid that commoditised products could be the end of skilled advice. But IM is showing that there could be huge potential in it. Why not have ‘off the shelf’ advice? People need basic advice on things like conveyancing and they don’t know where to get it from without overpaying. It is a gap in the market which someone needs to fill.
Legal Services Act
On the contrary, the commoditisation of legal services will simply be used by large organisations as yet another means to cross sell expensive and second-rate services. The customers (no longer clients) will be dealt with in the same contemptuous manner that mortgage lenders, insurance companies etc currently treat their customers. They will use their financial muscle to employ predatory pricing for as long as it takes to drive High Street competition out of business, then when they have the field to themselves the great rip-off will commence.
Legal Services Act
That’s a good point. If you’re a client, can you imagine being transferred around a call centre, being told ‘your call is important to us’? There will be no personal service, just a bureaucracy. The new regulator will be toothless. We’ll all be longing for the days of being regulated by the Solicitors’ Complaints Bureau (RIP)!