Will writers, divorce and probate services warned against “misleading or aggressive” practices

Book authors Will and other legal services firms have been warned against “misleading or aggressive” sales practices and threatened with an official investigation by the Competition and Markets Authority.

The watchdog issued guidance to seven unidentified firms on how to treat customers fairly, and openly published a letter to unregulated legal service providers.

It warns companies not to engage in “particularly disturbing practices” when people are at the most difficult times in their lives.

The CMA strives to eliminate inappropriate behavior such as aggressive upselling, refusal to refund and failure to respond to complaints.

The warning is aimed at legitimate companies, including prepaid probate services – which come with a specific, stiff warning explained below – and online divorce and will writing companies.

Writing services have become a cheap and increasingly popular alternative to high street lawyers.

Some of them enjoy a good reputation, follow codes of conduct and employ lawyers who ensure that the work is done properly – in the box below you will find out what you should check before using such a service.

The CMA says it wants to protect the growing number of consumers choosing to use unregulated legal services.

“It is crucial that they understand and comply with their consumer protection obligations,” it says. “People buying these services need to be sure they are getting a fair deal.”

The CMA adds: “People who receive the letter should acknowledge it and follow any recommendations to review and change contractual terms and practices.

“With the CMA due to be given greater enforcement powers from the spring, businesses could face formal investigation if concerns are not resolved.”

The new Digital Markets, Competition and Consumer Act will enable the CMA to determine whether a breach of consumer law has occurred, impose financial penalties and order companies to pay compensation to customers.

The watchdog has also issued guidance to customers on the level of service they should expect from unregulated divorce writers and providers, and where to get help if something goes wrong.

Meanwhile, probate is the formal process of taking control of an estate after someone's death.

The CMA says: “Consumers are cautioned to consider carefully purchasing pre-paid estate plans as they carry significant risks to consumer protection, including the possibility that a company may cease trading before the consumer's death.”

And it points to an earlier warning to the public on prepaid inheritance from the Financial Conduct Authority, which read: “We strongly recommend that you carefully consider whether these products meet your needs and offer value before purchasing as there are no regulatory protections in place.”

Sarah Manuel, director of professional standards at inheritance industry body STEP, welcomes the CMA's action to protect consumers from poor practice in the will and legal services industry.

“We fully support their efforts to warn unregulated suppliers and introduce stronger enforcement powers. We are also happy to advise the public on what to consider when purchasing will writing services.

Manuel warns: “Anyone can become a will writer and bad advice can cause significant stress, with bereaved families having to deal with the financial and emotional consequences.

“Too often we hear from the public and our members about the financial and emotional impact of poor advice from dishonest, unskilled and incompetent will writers.”

He adds that in a STEP survey of members last year, 79 percent had encountered wills containing errors and 54 percent knew other companies were making false claims, for example about avoiding nursing home fees.

“We continue to ensure that those preparing wills have the appropriate qualifications.

“STEP sets the standard for our members who prepare wills, trusts and similar legal documents using our qualifications, the Will Code and other tools.”

Manuel says STEP will continue to push for regulation of the will writing industry, alongside high-quality training and greater recognition of specialist qualifications.

Michael Culver, president of the Association of Lifetime Lawyers and head of Culver Law, also welcomes the CMA's move but doubts whether it goes far enough.

“While many will writing firms, especially those affiliated with the Society of Will Writers, must adhere to similar standards to law firms, others do not.

“These companies often make misleading claims about savings on care fees, inheritance tax and inheritance fees, with little protection for consumers. The new guidance and increased enforcement powers are therefore a positive step.”

But he adds: “Wills and Durable Powers of Attorney are key legal documents, often drawn up in emotional situations or by vulnerable people.

“It is time for these services to become a proprietary activity, as in other jurisdictions, to better protect consumers.

“Additionally, there is no mention of the risks associated with do-it-yourself kits, which can lead to costly legal issues and expose vulnerable people to fraud and abuse.”