UK Competition and Markets Authority warns unregulated will-writing and divorce service providers

Authorities urged them to comply with consumer protection laws or face potential enforcement actions

UK Competition and Markets Authority warns unregulated will-writing and divorce service providers

The Competition and Markets Authority (CMA) has issued a formal warning to unregulated providers of will-writing and divorce services in the UK, urging them to comply with consumer protection laws or face potential enforcement actions.

The move follows a long-running investigation into unregulated legal services, particularly focusing on practices such as aggressive upselling, refusal of refunds, and poor handling of complaints.

The CMA revealed that it had contacted seven providers of unregulated legal services, cautioning them against unfair practices that could harm consumers. The warning comes as part of a broader effort to protect UK consumers who are increasingly turning to alternatives to traditional high-street solicitors for legal matters like will-writing and divorce. The CMA noted that unregulated providers must ensure their services are delivered with reasonable care and skill in accordance with consumer law.

Businesses that fail to address these concerns could face formal investigations under new enforcement powers that the CMA will have by spring 2025, including the ability to impose financial penalties for violations, The Law Society Gazette reported. In an open letter, CMA reminded these providers that consumer law requires businesses to provide necessary information upfront, ensuring consumers can make informed decisions.

Hayley Fletcher, interim director for consumer protection at the CMA, highlighted the importance of fair practices, especially when consumers are dealing with emotionally and financially difficult situations such as drafting a will or going through a divorce. “It’s particularly important that a difficult time is not made harder by misleading or unfair practices,” Fletcher said.

In addition to the formal warning, the CMA has published new consumer guides to help individuals understand the potential risks of using unregulated legal services, including pre-paid probate services, and to ensure they ask the right questions before making a purchase.

The Law Society also responded to the CMA’s findings, emphasizing the importance of using regulated legal professionals when drafting wills. Law Society president Richard Atkinson advised caution, noting that mistakes in unregulated wills could lead to significant issues, especially in complex financial situations.

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