Taking Client Care Letters to the next Level by Sponsor Aon

Taking Client Care Letters to the next Level by Sponsor Aon

Taking client care letters to the next level

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The client care letter is the bedrock of the client relationship, or at least it should be. The difficulty is that it has become so standardised that there are real concerns that it does not meet the needs of clients. Indeed, for many clients it is such an irrelevance that they do not read to the end.

Often the crucial information that clients expect to see is missing, or only dealt with in passing. Instructing a solicitor is an emotionally charged event for many clients regardless of the nature of the instructions. If it relates to a house purchase, where the underlying event is positive, the process can still be very stressful.

Accordingly, even if there has been a telephone call or meeting first, clients often look forward to the first letter only to be disappointed when it arrives. Rather than seeing it as tailored to their needs, many see it as being more for the solicitor’s benefit.

Research jointly commissioned by all frontline legal regulators (including the Solicitors Regulation Authority (SRA), although the results have not been published on its website) and the Legal Services Consumer Panel (LSCP) was published in November 2016. The study was prompted by concerns that the language used in Client Care Letters (CCLs) is often a barrier to effective communication and engagement.

The findings show that CCLs are often not as effective as they should be in making sure that clients understand the work that is being carried out on their behalf or in outlining what is required of them.

Up until 2011, the SRA was a firm advocate of the CCL but since implementation of its 2011 handbook, the requirements that must be communicated in writing at the outset are really quite modest. Accordingly, it was unfortunate that the press release publicising the research stated that all regulated legal professionals are required to send CCLs. Happily, the report’s executive summary correctly sets out the position. Whilst not mandatory, the CCL has become the preferred way for many a firm to meet its regulatory obligations.

The regulations most commonly recited relate to complaints and money laundering. Most firms also include the name and status of the matter handler and his or her supervisor although this isn’t mandatory. Other matters recited depend on the circumstances. For example, any intention to cap your professional negligence liability, which can only be done above the minimum limit of indemnity, must be in writing and in a way that brings it to the client’s attention, so it should not be buried in your Terms of Business.

With so much of the firm’s focus on regulatory matters, little apparent thought is given to how the CCL’s content is presented. The downside for clients is that the CCL is often seen as having no practical benefit for them. The vast majority give only the merest hint as to the nature or scope of the work to be undertaken. Firms must of course comply with the Consumer Contract (Information, Cancellation and Additional Charges) Regulations 2013 which require the ‘main characteristics’ of the service to be provided before the client becomes bound by the retainer.

As a result, the CCL can come across as overly formal, generic and largely irrelevant. Clients that do read it often do not get past page one. Some even see the reference to complaints as indicating a lack of confidence by the firm in its ability to deliver an excellent service, not an outcome intended by the SRA. Others see the letter as being a document for future reference.

This obviously presents a dilemma for firms. The complaints information has to be provided at the outset even though, in an outcomes focused regime, it ought to be acceptable to provide this information at the end of a matter or following receipt of a complaint.

One practical solution is to present information in a more user-friendly format. Consider giving information that will be immediately useful to the client in the body of the CCL, whilst signposting other important information that is included elsewhere in your ‘Welcome’ pack.

Information falling within the ‘immediately useful’ category would include essential information such as: the name of the person handling the matter and who to go to in the event of absence or problems, the work that will be undertaken (including a concise summary of the process and client specific information on cost, timescales and next steps, rather than generic information), and the next steps that the client needs to take. Itemising these steps in a numbered list received positive feedback in the research.

Perhaps a more contentious issue is whether to include information about cancellation rights in the CCL which apply to ‘distance’ and ‘off-premises’ retainers as required by the above Consumer Contract regulations. The research found that clients were not interested in these. The difficulty is that they are mandatory. If reference is only made to the consumer rights in a separate document, clients may not see the information in time or at all. Perhaps the answer for those with the right to cancel is to signpost this in the CCL but include the details in a separate document (including the cancellation form) in the “Welcome” pack.

Adopting this approach would enable you to keep the letter itself short and to the point, preferably not more than two pages, whilst keeping generic compliance information in the separate ‘Welcome’ pack. The separate information could be set out on different coloured paper, perhaps headed; “IMPORTANT INFORMATION. Please keep for future reference.” Apart from information about cancellation rights and complaints, this folder could also include your terms of business and generic details about your service.

Many firms include a warning about cyber fraud. Although this makes sense, it is a good idea to discuss the cyber threat in meetings or by telephone as well. If you only mention the threat in your CCL, one further difficulty is that there may be a significant time lag between sending out the letter and the client being asked to submit funds.

Many CCLs lack a consistent voice, regularly switching between I, we, the firm, and the firm’s name. Addressing your client as ‘you’ is much more engaging than ‘the client’ or ‘our client’. Some standardisation is unavoidable but time taken to personalise a CCL is likely to pay dividends in building trust.

Optimisa have recommended eight key principles for making CCLs more effective, although these have not been endorsed by the SRA. These include making the rationale of the letter clear at the start as this can help set the tone for the relationship. With a view to dispelling any negative preconceptions about legal correspondence, it also recommends adopting a logical structure and layout (including the use of headings and bold text), using plain English and a font size of 12 or larger, whilst avoiding dense paragraphs. Apart from visually impaired clients, many firms may consider such a font size too large, especially as the Law Society recommends size 11.

Not all the findings in the report will appeal to your firm, but there is plenty of food for thought. If you haven’t yet studied its 47 pages, add it to your ‘to do’ list, particularly if the annual review of your CCLs is on the horizon. There are sure to be things you want to change to improve the way you communicate with your clients.

For more information on this article, please contact: Marco D’Ovidio, Associate Director, Aon UK Limited on 0117 9485116

Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article. This article has been compiled using information available to us up to 14 May 2017.

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