CMA releases guidance for UK unregulated businesses providing will-writing services

The guidance follows a consultation held earlier in 2024, prompted by a CMA investigation in July 2023 that identified these sectors as potentially risky to customers and open to possible breaches of consumer protection law. Complaints reported included consumers being misled by advertising; unfair contract terms such as exclusion of liability; pressure selling; and lack of cancellation rights. Unregulated providers also run the risk that customers' money or important documents may be lost if the company ceases to operate, a particular risk where documents such as wills may have to be stored for decades.

There are thought to be about 208,000 unregulated providers in England and Wales alone, many of them operating in the will-writing sector. The Solicitors Regulation Authority (SRA) estimates that unregulated providers have 6 to 8 per cent of the legal services market.

The CMA's guidance was published in draft form in April 2024 and attracted generally positive comment from several professional societies, including STEP. The final version closely follows the draft published in April, setting out the requirements of consumer law. It provides some practical checklists and case study examples, to illustrate the types of issue and potential consumer law breaches it has identified.

At the same time, the CMA has published guidance for consumers considering purchasing these services. This cautions consumers to think especially carefully before buying pre-paid probate plans, which have significant consumer protection risks, including that the company could cease trading before the consumer's death.

However, the CMA has also published an open letter to businesses operating in these sectors, warning them that it expects to carry out a compliance review 'in due course'.

'If we continue to have concerns with a business’s practices the CMA will consider taking enforcement action', it said, adding that in April 2025 it expects to get new powers under Digital Markets, Competition and Consumers Act 2024 that will enable it to impose financial penalties for breaches of consumer protection law.

It has already written to seven such businesses cautioning them against using particularly concerning practices such as aggressive up-selling, the refusal of refunds and failing to respond to complaints. Businesses who receive one of these letters must 'act on any recommendations to review and revise their contract terms and practices', said the CMA. If its concerns are not addressed, the businesses could face a formal investigation.

STEP welcomed the CMA's actions to protect consumers from poor practice within the will writing and legal services industry. 'We fully support the CMA’s efforts to caution unregulated providers and introduce stronger enforcement powers', said STEP. 'We also welcome advice to the public about what to consider when buying will-writing services.

'Anyone can set themselves up as a will writer', STEP noted. 'Bad advice can cause significant distress, leaving grieving families to deal with the financial and emotional consequences. We hear all too often from the public and our members about the financial and emotional impact of poor advice from dishonest, unqualified and incompetent will writers.' A 2023 survey of STEP members found that 79 per cent had come across wills with errors and 54 per cent were aware of other firms making false claims, such as avoiding care home fees.

'We remain committed to ensuring that those drafting wills are appropriately qualified', said STEP. The society sets standards for members who write wills, trusts and similar legal paperwork through its qualifications, Will Code and other tools.

'We will continue to work with the CMA and other partners to help protect people from poor advice when they are often at their most vulnerable', it said. 'We will also continue to push for regulation of the will writing industry alongside the provision of high-quality training and greater recognition of specialist will qualifications.'

Sources

• CMA (statement)
• CMA (guidance)
• CMA (open letter to unregulated providers)
• CMA (guide for will-writer customers)
• CMA (guide for divorce customers)
• CMA (draft consumer protection law compliance guidance)
• STEP UK News 2 May 2024: CMA consults on protection for customers of unregulated will-writers