Sir, According to the Solicitors Regulation Authority, 375 law firms closed in September this year (a rise of 26 per cent compared with the same month in 2007). This is a sign of things to come and highlights the strong likelihood that things are likely to get worse still. The sad fact is that it isn’t going to be the large supercentre law firms that will suffer; it’s going to be the small local community law firms, those representing ethnic minorities and legal aid firms that will really struggle to keep their head above water. This is mainly because the survival of these businesses is dependent on servicing a specific geographical area or a very small community, but it doesn’t make them any less important than the bigger players.

The rise in law firm closures comes as part of a four-wave impact of referral fees, graduated fees, the current credit crunch on the property market and the tightening of credit available. Tomorrow, those struggling firms will also have to contend with the commercial threat of new larger entrants to the market that are already gaining greater market share and contributing further to the demise of the local high street solicitor.

As consumers we have the right to access to justice from a local solicitor within our community. They have an important role to play, as there is always going to be demand from consumers who want a personalised service and a solicitor who holds a breadth of local knowledge. Giving these law firms the right support now is vital.

Stephen Allen

Director at Clarity Legal

Sir, Your report on the wholly disreputable practice of lawyers paying bribes to have work referred to them (Nov 14) included the comment from the Solicitors Regulation Authority (SRA) that “the profession is deeply divided over the ethics of these payments”. This is simply not true.

These payments were originally banned altogether; when the Law Society lifted the ban a special ballot was called in the profession and the vote was decisively for reinstatement of the ban. The Law Society (and its henchmen in the SRA) ignored the vote.

I have specialised for many years in helping people with a complaint against a solicitor. It is disappointing to see yet again the very body that is supposed to regulate the profession misrepresenting the position in this way.

John Wilson

Wilsons Solicitors, Leeds

Sir, Your report highlights the way in which the legal profession has descended into a disgraceful bung culture where unacceptable practices are now the norm.

Almost unnoticed, a practice has developed where the majority of personal injury claims are sold by legal expenses insurers to the highest-bidding solicitor. A typical small case would involve paying a referral fee of £600 for a matter where the solicitor would eventually get paid £1,200. As half the fee has already gone to the insurance company, the solicitor has every incentive to settle the case quickly and at a low level. The client is in blissful ignorance that the case has been undersettled to the benefit of the insurers and solicitors.

Most solicitors deplore these practices. The only ones in favour are those who make large sums from churning and burning the clients who depend on them. It is time not only to have a ban on referral fees, but actually to enforce it.

Patrick Stevens

Stevens Lucas, Solicitors, Wrexham

Explore Letters

• Feedback