Solicitors Regulation authority pays out increasing amount in claims
Solicitors get a bad rap generally and often clients simply do not understand that while hourly rates are high and the perceived value of work to prevent future problems is low, the hourly rates incorporate high compulsory insurance which protects the public and business clients in a way which unregulated legal services simply do not.
Put simply, if your solicitor is negligent, he or she must have insurance of at least £2 million per claim and if there are other issues such as fraud or bankruptcy or missing client funds, the Solicitors Compensation fund will ultimately pay out legitimate claims., These represent some very compelling reasons to use solicitors rather than attempt a DIY or unregulated solution to any legal issue or problem of any value or importance.
In terms of figures, mortgage frauds cases are always the biggest drain on the compensation fund, and whenever there is a property boom, these cases rise, but tend to only surface when the bubble bursts and lenders and others take time out to analyse a loan book.
Latest figures from the SRA reveal :-
- claims against solicitors relating to mortgage fraud have risen sharply to £173 million in the last year although a good proportion (about 70% are not paid out)
- there are 770 ongoing claims being dealt with by the compensation fund
- the overall amount of claims against the fund is rising. This year it is £214 million which is 27% higher than a year earlier although with a smaller number of claims
