CLC Price & Service Transparency - Informed Choice Rules
Last Updated: 1st May 2020
We have produced an overview of how the changes to the Council for Licensed Conveyancers (CLC) Regulatory Arrangements will affect your CLC regulated law firm as detailed in the Informed Choice section of the CLC website.
The new rules are a result of the recommendations set out in the Competition and Markets Authority’s (CMA) Legal Services Market Study regarding price and service transparency.
According to the CLC's 2019 Annual Regulatory Return, 46% of CLC regulated firms now allow clients to generate an instant quote through their website using tools such as QuoteXpress, whilst 72% are offering client testimonials or information from online review platforms (such as ADVC8) to help promote their firm on quality of service, not just price.
1) 46% of Conveyancing Firms now offer Instant Web Quotes
The CLC's 2019 Annual Regulatory Return notes that 46% of CLC regulated firms now offer instant quotes through their website.
2) 56% of Conveyancing Quotes are requested outside Work Hours
Leads for Lawyers research showed that most conveyancing quotes are generated outside of working hours.
3) Instant Web Quotations = More Enquiries
Instant Quote tools have been proven to generate more enquiries for your law firm.
If your firm isn't offering Instant Web Quotes yet, we can help!
Add the QuoteXpress Instant Quote Calculator to your website and start offering instant web quotes to your clients.
CHANGE HISTORY
01/05/20 - Included signposting to the CLC's benefits of displaying prices on your website and guidance on how to promote your firm on quality of service, not just price.
03/09/18 - Updated to reflect that the Legal Services Board (LSB) has now approved the CLC's changes to the regulatory arrangements.
27/09/18 - Added updates for CLC Informed Choice guidance.
02/12/18 - Updated to reflect guidance that fee estimate generators must be capable of producing a quote without the need for the consumer to provide any contact details.
07/12/18 - Added clarification around quote generators which allow contact details to be entered as optional information.
What are the changes to the Regulatory Arrangements?
According to the CLC's Informed Choice Guidance:
“The aim of the new requirements is for consumers to have the information they need, when they need it, to help them make an informed decision about which legal services provider to choose.”
These new requirements are grouped together under the new "Informed Choice Rules" which include:
- Code of Conduct AMENDMENTS
- Estimates and Terms of Engagement Code AMENDMENTS
- Complaints code AMENDMENTS
What information must firms display on their website?
Under the CLC's new Regulatory Arrangements firms must display in a prominent place on their website:
- Cost information;
- Service information;
- Regulatory information; and
- Complaints information.
Firms are also encouraged to consider the benefits and risks of third party feedback platforms and price comparison websites for them and their clients.
How am I expected to publish my prices under the amended Estimates & Terms of Engagement Code?
The CLC has worked with other regulators in order to agree common frameworks for publishing price information on certain services.
Publishing Price information through your website
CLC regulated firms are already required to provide a cost estimate to clients at the outset of instructions and to make it simple for clients and prospective clients to find pricing information.
According to the CLC's Informed Choice Guidance firms must:
"Display cost information on your website, which should be easily accessible and in a prominent place, and by other reasonable means on request."
‘Cost information’ is defined as:
- the total cost of the service or, where not practicable, the average cost or range of costs;
- a description of the service offered;
- your fee, or where not practicable your average fee or range of fees;
- whether your fees are determined as a fixed sum or by reference to hourly rates;
- a description and the value of disbursements, including Land Tax. Where the actual cost of a disbursement is not known, a range of the likely cost of that disbursement;
- whether VAT is payable on your fees or disbursements and if so in each case the amount of VAT payable;
- whether you have referral arrangements with third parties, whether a referral fee is paid and, if so, the fee or average referral fee payable.
The CLC also notes that:
“You could provide ... An instant estimate generator on your website or via a third party website. The generator should produce an instant estimate directly to the consumer. A consumer shouldn’t have to provide contact details to receive a call-back or email for an estimate.”
Our QuoteXpress platform includes an instant online quote generator that you can add to your own website - signup today.
Can I capture contact information for the client before producing a quote or providing a fee estimate?
No. According to the CLC:
"The cost generator must be capable of producing a quote without the need for the consumer to provide any contact details (eg. telephone number or email address)."
If entering contact details are clearly optional and not required to obtain quote (e.g they are not mandatory fields) then the generator would be compliant.
The quoteXpress quote calculator does not require contact details to be captured before producing a fee estimate.
What if I don't have a website?
According to the CLC Guidance:
“If you don’t have a website, you must provide the information by ‘other reasonable means on request’ which could include email, post or leaflets available for consumers visiting your office.”
What guidance has the CLC issued?
The CLC has produced Informed Choice Guidance, which is included below for reference and has also added a new Informed Choice section to its website.
If you cannot see the consultation paper then your web browser does not support embedded PDF's - in which case you will need to download the paper to view it.
The CLC has also compiled a list of FAQs, produced some top tips for implementing the new requirements, summarised the benefits of displaying prices on your website, and also produced guidance on how to promote your conveyancing firm based on quality of service, not just price.
When did the Informed Choice Rules come into force?
The rules came into force on December 6th 2018
Which legal services are affected by the Informed Choice Rules?
Whilst there are a wide range of services covered by the new SRA Transparency Rules the CLC’s consultation only covers the legal services regulated by the CLC - conveyancing and probate.
QuoteXpress can generate instant fee estimates for conveyancing and probate matters, covered by the new Informed Choice Rules.
What do the cost estimate templates look like?
The new templates are encapsulated in the CLC cost estimate templates.
For Consumers
| Case Type | Available in QuoteXpress? |
|---|---|
| Residential Conveyancing - Sales | YES - Conveyancing Quote Calculator |
| Residential Conveyancing - Purchases | YES - Conveyancing Quote Calculator |
| Residential Conveyancing - Remortgages (and mortgages) | YES - Conveyancing Quote Calculator |
| Probate (uncontested) | YES - Probate Quote Calculator |
Publish Prices by adding an Online Quote Calculator to your website
Studies have shown that consumers of legal services are more likely to get in touch with you if they can get an instant quote. Furthermore, research conducted by Leads for Lawyers in England and Wales showed that 56% of conveyancing quotes are requested by consumers outside of business hours.
By adding a tool such as QuoteXpress to your website, you can allow site visitors to obtain a tailored fee estimate from you directly. Once they have the estimate they can proceed and get in touch to discuss their matter further should they wish.
Services such as conveyancing and wills are relatively straightforward to price up and offer through an instant quote calculator. Try out the QuoteXpress Quote Calculator below and see for yourself.
THE QUOTEXPRESS WEBSITE QUOTE CALCULATOR FOR CONVEYANCING & PROBATE
Note: This is only an example. You can customise the colours and pricing to meet the needs of your firm, as wellas create seperate calculators for the conveyancign and probate service pages of your website
Conveyancing
What questions do I need to ask in order to produce a transparent fee estimate for conveyancing?
With respect to conveyancing, templates for calculating conveyancing fees were developed between the Council for Licensed Conveyancers, Chartered Institute of Legal Executives and the Solicitors Regulation Authority.
The information you are expected to capture in order to produce an accurate and transparent fee estimate is as follows:
| Required Information | Asked in QuoteXpress and automatically factored into the fees if required? |
|---|---|
| whether a first-time buyer | Yes |
| value of sale/purchase | Yes |
| whether a remortgage | Yes |
| whether freehold or leasehold | Yes |
| whether a new build | Yes |
| whether first registration of title | Yes |
| whether mortgage or not | Yes |
| whether an Islamic mortgage | Yes |
| in purchase cases, whether primary residence, buy to let or second/holiday home | Yes |
| whether multiple owners | Yes |
| whether a shared ownership scheme | Yes |
| whether using a help to buy scheme | Yes |
| whether purchase under right to buy | Yes |
| whether purchase at auction | Yes |
| whether property has been repossessed | Yes |
Conveyancing Price Transparency Compliance
QuoteXpress can help you and your business meet new Transparency Rules and Guidance.
Add the QuoteXpress Instant Quote Calculator to your website and help your business meet the new requirements.
Probate
What questions do I need to ask in order to produce a transparent fee estimate for probate?
With respect to probate, a template for calculating probate fees has been developed between the Council for Licensed Conveyancers and the Solicitors Regulation Authority.
The information you are expected to capture in order to produce an accurate and transparent fee estimate is as follows:
| Required Information | Asked in QuoteXpress and automatically factored into the fees if required? |
|---|---|
| Whether there is a will and if it has been located | Yes |
| Identity of inquirer and if, they are not an executor, whether all executors have died or refused to act | Yes |
| Estimated value of assets | Yes |
| Whether there is property in the estate | Yes |
| Whether any property is outside England and Wales | Draft Estimate saved so that further enquires can be made as to the nature of the property |
| Whether the grant of probate is likely to be contested | Draft Estimate saved so that further enquires can be made as to the nature of the property |
| Number of actual assets/ liabilities (apart from properties and value of) | Yes |
| Number of properties and value of | Yes |
| Number of beneficiaries | Yes |
| Are any of the beneficiaries mentally incapable or a minor | Yes |
| Are there any trusts in the Will | Draft Estimate saved so that further enquires can be made as to the nature of the property (coming soon) |
| Is the estate a taxable one or not | Draft Estimate saved so that further enquires can be made as to the nature of the property (coming soon) |
| If the estate is not taxable on first light then enquire as to whether any gifts were made in lifetime that may make estate taxable | Draft Estimate saved so that further enquires can be made as to the nature of the property (coming soon) |
| Any missing beneficiaries or any forensic work needed to create family tree under intestacy | Draft Estimate saved so that further enquires can be made as to the nature of the property (coming soon) |
Probate Price Transparency Compliance
QuoteXpress can help you and your business meet new Transparency Rules and Guidance.
Add the QuoteXpress Instant Quote Calculator to your website and help your business meet the new requirements.
How can QuoteXpress help?
QuoteXpress can help your firm meet new transparency rules and guidance. The QuoteXpress Instant Quote Calculator can easily be added to your website and can and help your firm meet the requirements of the new rules. Start your free 30 day trial today.
Conveyancing and Probate Price Transparency Compliance
QuoteXpress can help you and your business meet new Transparency Rules and Guidance.
Add the QuoteXpress Instant Quote Calculator to your website and help your business meet the new requirements.
