Legal Services Bill [HL]

moved Amendment No. 110: 110: Clause 110, page 60, line 9, at end insert— ““( ) Nothing in this Part is intended to prevent an application to the Solicitors’ Compensation Fund for redress in respect of a determination by an ombudsman with which a solicitor respondent is unable or unwilling to comply.”” The noble Lord said: I can be much more terse in introducing this amendment. It would protect an important right of redress for consumers via the solicitors’ compensation fund. Currently, a complainant, in whose favour a direction for compensation for poor service has been made, can apply for payment to the solicitors’ compensation fund in circumstances of default. This is often used in cases where the provider is, for example, bankrupt or in prison. This right should be enshrined within the legislation and perhaps should be applicable across all the approved regulators. We would even favour the OLC having a direct power to enforce such a claim to the solicitors’ compensation fund on behalf of its consumers, rather than leaving it to the consumer to enforce the award. It is essential to have an effective and reliable system in place; and that depends, not least, on whether the consumer receives compensation. After the negative experiences that the consumer will already have had, it would only add to his misery then to expect him to enforce the payment on default. Such a measure might also discourage any solicitors who believe that they can escape paying compensation because the consumer might not know of his right to the compensation fund. I beg to move.