CILEX warns of risks in proposed Legal Ombudsman fee increases

The Chartered Institute of Legal Executives (CILEX) has expressed concerns regarding proposed fee increases by the Legal Ombudsman (LeO). The LeO is considering a staged fee structure in response to a 37% increase in service requests over the past year. Under the proposed plan, firms could face charges ranging from £200 for early resolutions to £1,500 if an ombudsman decision is required. An additional £400 fee would apply if a firm fails to issue a final response to a complaint within eight weeks.

CILEX warned that these tiered fees might incentivize law firms to make “unmerited payments” to clients to avoid higher costs, potentially preventing legitimate complaints from reaching the ombudsman. Additionally, the organization raised objections to a proposed requirement for complainants to prove “serious detriment,” arguing that such a standard might cause minor but valid complaints to be denied a hearing. While CILEX supports the ‘polluter pays’ principle, it advocates for specific adjustments to evidence requirements and time limits for handling legal fallout.