Karen Adam MSP
Convener
Equalities, Civil Justice and Human Rights Committee
The Scottish Parliament
EH99 1SP
By email to ehrcj.committee@parliament.scot
10th March 2025
Dear Convener,
Consumer Scotland is the statutory body for consumers in Scotland. Established by the Consumer Scotland Act 2020, we are accountable to the Scottish Parliament. I am writing to highlight issues of particular relevance to consumers in Scotland in relation to legal services.
Consumer Scotland has been approached by a number of consumers affected by the cessation of the firm of WW & J McClure, which ceased to trade in 2021. While it is not our role to provide advice or redress to individual consumers, we do have a role in advocating for the needs of consumers more broadly. Following discussions with consumers, other regulatory bodies and the Scottish Government, we have continued concerns that consumers affected by the former firm’s failure are not obtaining positive outcomes. These concerns are more fully set out in published correspondence with the Law Society of Scotland, the Lord President and the Minister for Victims and Community Safety, which is available on our website. In summary, we are concerned at the slow speed of the notification process and the difficulties for consumers in navigating the current environment.
It has taken too long for consumers to be made aware that the firm has ceased to trade and that their files have been transferred to Jones Whyte LLP as the successor firm.
WW & J McClure ceased trading in early 2021, yet some consumers are still only hearing of this now. The Solicitors Regulation Authority (SRA) who regulate legal firms in England and Wales, has raised concerns that it is taking too long to deal with the issues affecting former clients within their jurisdiction. The SRA is concerned that former clients are experiencing stress and frustration arising from delay and uncertainty. It has now entered into a formal compliance plan with Jones Whyte, setting out deadlines by which clients in England and Wales must be contacted and have monies returned to them.
The Law Society of Scotland (LSS), the relevant Scottish regulator, share our concern regarding the speed at which clients are being contacted. However, they have indicated that because the LSS does not currently have the equivalent regulatory powers over law firms as exists in England and Wales, they remain limited in the action that they can take. The LSS have indicated that they continue to monitor Jones Whyte’s progress generally and to press them to complete the work expected in relation to clients in Scotland within strict timescales.
We recently wrote to Jones Whyte to clarify the approach they are taking to working with clients in Scotland and they have confirmed to us that consumers in Scotland will be advised of events, and have relevant monies returned to them, in the same timeframe as those resident in England and Wales.
The LSS advise that revised practice rules and draft guidance will be brought forward to improve the client experience when business is transferred between firms in the future. However, this has yet to be approved and will not be retrospective in nature. It will therefore not improve outcomes for those consumers affected by current events.
Consumers have struggled to receive the support and assistance needed
Consumers, and especially those in vulnerable circumstances, may find it challenging to navigate this complex landscape. Given the demographic characteristics of the former firm’s clients, as time elapses, they will be more likely than the average consumer to experience issues in relation to illness, disability or capacity. In some cases, bereaved family members may be thrust into navigating these legal issues without having any prior knowledge of the arrangements entered into by their late relatives.
The Minister has stated that while she recognises the distress that the former firm’s failure has caused, this is an ongoing regulatory matter, in which the Scottish Government and Scottish Ministers cannot intervene. The Minister encouraged those affected to seek advice from the LSS and the Scottish Legal Complaints Commission, who can provide information and clarity on how to seek redress through raising a complaint. The Minister notes that measures in the Regulation of Legal Services (Scotland) Bill are intended to improve outcomes for consumers, and that the government’s priority is taking forward that legislation to deliver those benefits.
In terms of the accountability of the current regulatory regime, the Minister noted that the legal profession is regulated by the Lord President, who is independent from Government, Parliament and those he regulates. We have therefore explored these issues with the Lord President, who recognises the significant and distressing impact of these events on many former clients. He notes that, while the Minister is correct that he is the ultimate regulator of the legal profession, he has no power to bring forward new legislation, or amend existing statutory powers, to protect consumers. If there are any legislative gaps in the regulatory framework protecting consumers, that is a policy matter for the Government and Parliament to consider and address.
It is clear that action is being taken by the regulatory bodies to assist consumers and to signpost to existing redress bodies, which is welcome. However, raising a complaint is not a simple process, it requires evidence to be submitted by each individual consumer, sometimes to more than one body.
While complaints bodies can advise on redress, they cannot assist consumers who need to take action by safeguard their family interests, such as removing trustees who were associated with the former firm, registering trusts with tax authorities and completing returns, or winding trusts up. This almost inevitably obliges consumers to spend more money on legal services, at a time when their level of trust in the system is low. It may also cost substantial sums of money. Although the Minister notes that legal aid may, in principle, be available, we understand that no claims have yet been made by consumers. We consider that further support to negotiate these complex legal issues and funding challenges would help consumers, especially those in vulnerable circumstances.
We acknowledge that current legislative measures restrict the extent to which regulatory bodies can offer comment on ongoing regulatory matters. We are aware that that measures in the current legislation before Parliament aim to improve levels of monitoring and address issues around both individual firms and regulators’ performance in future. However, these measures will come too late for those consumers who are currently affected by the failure of WW & J McClure.
Consumer Scotland has considered these matters over the past year, and engaged in a considerable volume of correspondence, and a number of meetings to advocate for better outcomes for these consumers. While we will continue to do so, we consider that gaps the current regulatory regime present considerable difficulties in seeking to achieve a satisfactory resolution to these issues for former McClure’s clients.
We know that this is an issue of concern to many MSPs and as such I wanted to draw these issues to your attention. Despite the regulatory issues identified, we consider that there is scope to improve the support offered to former clients to work their way through the aftermath of the closure. However, any additional progress that might be made in improving he outcomes for former clients of McClures in Scotland is likely to require additional resource. While we are aware of the Committee’s full work programme, if it were minded to explore these issues further then we would be happy to provide any further information or support that might be helpful in this process.
Yours sincerely
Sam Ghibaldan