More than 700 reports of bogus law firms were made to the Solicitors Regulation Authority in 2014, an annual increase of over 25%, its latest risk update has revealed.
The number of reports of bogus law firms received by the Solicitors Regulation Authority in the first eight months of this year is up by over 20% on the same period last year, the regulator has said.
The recent headlines about Wonga, Lloyds and other large institutional organisations using fictitious law firms as a means of ‘upping the ante’ with debtors has really focused minds on the morals and ethics adopted by such organisations.
The row over companies sending letters to customers in debt that falsely appear to be from independent solicitors’ firms, rather than their in-house lawyers, is set to rumble on after the Treasury select committee demanded information from the main high street banks about their activities.
Bogus law firms and money laundering have become two of the biggest current risks to law firms, the Solicitors Regulation Authority (SRA) said yesterday, in publishing its 2014 risk outlook.