The Law Society has described reports that payday lender Wonga issued letters from fake law firms to threaten customers who were behind on repayments as alarming both to the public and to Law Society members. It says the case has highlighted a loophole where organisations and individuals can pass themselves off as legal professionals by calling themselves legal firms.
Responding to the news that consumer groups and an MP are demanding a police inquiry into Wonga, a Law Society spokesperson said: “We are writing to the Financial Conduct Authority, the Solicitors Regulation Authority and the police about this. We are establishing the facts. The case has highlighted a number of important issues around organisations and individuals presenting themselves in a misleading way so that the public believe them to be regulated legal professionals, such as solicitors.”
In an interview with the BBC Newsnight programme on 25 June, Law Society vice president Andrew Caplen said it was concerning that Wonga’s customers were treated in this way. He explained that people can call themselves law firms as the term is not protected. However they cannot call themselves solicitors. The problem, however, is that consumers often do not understand the differences.
Under the 1974 Solicitors Act, anyone unqualified holding themselves out as a solicitor can be jailed for up to two years; however, Wonga did not use the protected term and the Law Society continues to establish the options to protect consumers and solicitors.