THE Scottish Government must swiftly set out its action plan to better support the thousands of customers affected by the collapse of a former Greenock law firm, a leading consumer protection body has demanded.
McClure's Solicitors, which had been based at Nicolson Street, fell into administration and ceased to trade in 2021, leaving around 100,000 clients - many of whom elderly and vulnerable - in limbo.
Their files have been transferred to another company, Jones Whyte, but in the three years since the closure of the business many locals with homes in trusts have faced difficulty selling the properties, while others have been hit by further legal fees trying to rearrange their affairs.
Recently the subject of a Scottish Parliament members’ debate from Inverclyde MSP Stuart McMillan, who has organised information events attended by hundreds of those impacted by the situation, the issue is also the subject of a police investigation into alleged fraudulent activity linked to family protection trusts.
Now, publicly-funded Consumer Scotland is urging ministers to outline their strategy to update customers and direct them to the right areas of help.
READ MORE: Grieving Greenock man caught up in McClure's controversy is £8,000 out of pocket
In a letter to Siobhian Brown, minister for victims and community safety, the chief executive of the independent statutory body called for further steps to be taken to alert customers promptly of the ongoing problems.
Sam Ghibaldan said: "Given the type of legal matters dealt with by McClure’s, clients may be elderly, in poor health or otherwise vulnerable.
"It is important that they are made aware, so that they can understand their situation and consider whether further action is required.
"Delaying notification may lead to cases where further action falls to relatives where the original clients are now deceased or are experiencing incapacity, causing further distress at an already difficult time."
Mr Ghibaldan said all former McClure's clients should ideally be contacted within the next three-six months.
He wrote: "We would be grateful for assurances that you and your officials are aware of the need for urgency and are actively engaging with the relevant regulatory bodies to bring about improved awareness levels amongst former clients and the public."
The letter adds: "We are concerned that the onus is left on individual consumers to work their way through a complex landscape, with many differing organisational roles and remits.
"While issues around former firms are always complex, the current situation carries a higher risk of harm to consumers because of the interplay of several factors; these being the volume of clients, the potentially vulnerable nature of many clients and the apparent issues of quality relating to some of the work previously undertaken.
"Navigating this landscape may be too difficult for many consumers, and especially those in vulnerable circumstances."
Highlighting the 'current lack of dedicated support and information' which 'risks poorer outcomes' for customers, Mr Ghibaldan asked what role the government might play in the process of engaging other advice bodies to explore the issues further.
The letter said: "We are not a complaints organisation, nor do we have a specific redress role in this case.
"But we do have concerns on behalf of consumers more broadly, and we think that there would be merit in further Scottish Government and ministerial engagement to help assure consumers that their interests are being safeguarded."
MSP Ms Brown expressed her sympathy for those affected by the collapse of the firm.
She said: "I would encourage anyone affected to contact the Scottish Legal Complaints Commission to consider if they are eligible for redress, as the first point of contact for complaints, and to seek advice from the Law Society of Scotland “Protecting the interests of clients is a matter for the Law Society of Scotland as the regulatory body. Legal firm Jones Whyte took on McClure’s files and is engaging with those affected.
“Cases such as this illustrate that the reforms detailed in the Scottish Government's Regulation of Legal Services (Scotland) Bill are needed to further support and strengthen the public interest and protection of legal consumers.”
READ MORE: Former McClure's clients hit back after firm disputes 'substandard work' claims
A former director of McClure's said: “We are not in a position to discuss any individual cases because of very strict rules of client confidentiality which we respect.
“Trusts remain a good option for many families and with appropriate legal advice, the fact that McClure no longer exists does not affect the effectiveness of a trust. Among other benefits, it avoids the cost, hassle and delay of the executry procedure on the sad occasion of a death.
"Whilst client files are held by Jones Whyte LLP (the firm that acquired the files of McClure Solicitors from administration), clients are free to choose any solicitor for work related to their trusts.
“Sadly, the firm’s administration has meant that making changes to trustees and ongoing administration of their trusts will result in legal costs that were not foreseen at the time of instruction.
"This is deeply regrettable and we have every sympathy for former clients in that position, however it is due to the fact that the firm, sadly like many others, did not survive the extreme trading pressures of Covid.
"As the firm no longer trades, there is no way to support former clients, so they unfortunately need to seek future legal support elsewhere at their cost.”
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