INSURERS AT IT AGAIN ? (4)
A solicitor’s client is referred to DLG Legal Services Ltd (DLG), part of the Direct Line Group (DL). It is regulated by the Solicitors Regulation Authority but from its website it seems only to accept clients who have a DL legal expenses policy. It is a firm of solicitors, not an Alternative Business Structure.
A client care letter is sent by DLG at a flat rate of £275 an hour plus VAT, whoever is dealing with the matter. I have a copy of that letter.
They are way above the rates that DL will pay to firms of solicitors instructed as the client’s choice. So it pays itself getting on for double its usual rate.
Its client care letter has this odd paragraph, under “Introducers”:
” This firm is appointed by Direct Line. This firm is a member of the same Group of companies as Direct Line. Aside from that your insurer has no financial interest in referring your case to us. The advice we give to you will be independent.”
That is a variant on the old chestnut “Apart from that how did you enjoy the play Mrs Lincoln?”
In a free market why do not DL put the work out to firms who will happily work for a much lower rate than that?
See also my related blogs:-