We’re almost there, keep going – the weekend is within touching distance. “Big last 10”, as my rugby coach used to say (ahem, scream) from the touchline.
In this week’s newsletter we have two SRA warning notices to highlight. One relating to PPI claims, and another regarding offensive social media posts. Remember that warning notices can be used as ammunition in disciplinary decisions, so they occupy a strange little space between rule and guidance.
Another council has been fined by the ICO for serious data protection failures, and the SDT has also been busy with its red pen recently – lots of strike offs.
‘Til next time….
Jon and the team.
SRA Warning Notice #1 – PPI Claims
If your firm brings PPI claims – heads up. A new warning notice is aimed at you. The SRA is concerned that some firms are failing in their duties to act in accordance with professional principles e.g. acting without first investigating whether there is a valid claim, and failing to properly identify clients.
They are also concerned that costs on damages-based agreements are often excessive, and the SRA indicates that costs should be in line with the proposed fee cap of 15%. Interestingly, they have put claims management companies on notice that setting up ABSs does not magically exempt a firm from the fee cap.
There are also issues around taking referred cases, where those clients may have been sourced through cold calling.
This warning follows a similar warning in 2012.
Why it matters
PPI claims are part of a dying industry – the clock is ticking before new PPI claims are time-barred in 2019. Between now and then, it is not unreasonable to suspect that some CMCs will be scrabbling around to source work and push through claims, to the detriment of ethics and professionalism. This is a timely reminder that solicitors must avoid getting caught up in the chaos.
SRA Warning Notice #2 – Offensive Social Media Posts
Following a spate of disciplinary cases (e.g. this nasty one), the SRA has deemed it necessary to remind the profession about professional conduct in public forums and in private communications. Solicitors and law firm employees must act in accordance with professional principles (including acting with integrity, not in a way that harms the public’s trust in the profession) when:
- posting on social media, even outside of work
- sending letters
- making telephone calls
- communicating with colleagues
- liaising with opposing lawyers, litigants in person and other third parties
Why it matters
This warning notice is aimed not just at solicitors. It applies to everyone working in an SRA-regulated firm. If you haven’t already, you should flag the warning notice to your entire firm and remind staff about your relevant policies (e.g. social media, use of internet). If you don’t already have these in place, the warning notice suggests that you should. You might even be surprised by the number of unqualified staff who have no idea that they are subject to SRA rules.
Nottinghamshire Council fined £70k for under Data Protection Act
We recently drew your attention to Basildon Borough Council and Gloucester City Council, who were prosecuted by the ICO for serious data breaches. Well, this time it’s the turn of Nottinghamshire County Council, who were taken to task for leaving the sensitive personal information of vulnerable people – unsecured – on a web portal for five years.
Why it matters
It really feels as though the ICO is beginning to flex its muscles in readiness for the GDPR implementation (May 2018), doesn’t it?
Disciplinary decisions
- Peter Davies improperly paid £5,000 from the estate of a client to the personal bank account of another client who was not entitled to the money. He also paid £1,000 for a council tax bill for a client from money belonging to another client. Mr Smith made payments of £50,000 and £20,000 to third parties from an estate of a client where the third parties were not beneficiaries and so not entitled to the payments. He also misappropriated £223k from Halifax personal bank accounts belonging to a client for whom he held a power of attorney for his own personal use. Mr Smith fraudulently created two wills, and both named third parties as beneficiaries when this was not true. He was – unsurprisingly – struck off.
- Rose Egarr, who loaned up to £100,000 from client account to another client, has been struck off by the SDT. Her actions were held to be very serious examples of dishonesty. The costs order against her was over £22k.
- Claire Wheeler, a family solicitor found to have falsified correspondence to cover up her own lack of progress, has also been struck off for dishonest behaviour, with a costs order of £32k against her.
- Babar Khan, a trainee solicitor, was found guilty of providing unregulated immigration services and handed an 18-month suspended sentence.
- Vernon Burke improperly withdrew £47k from the client account of this firm. He cleared off residual balances on client account by issuing bills and paying them from client funds without justification to do so. Guess what? He was struck off, with a £21k costs order.