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Regulators need to take urgent action to improve the way lawyers handle complaints after a “hard-hitting” new report highlighted multiple failings. However, although clients are often scared to complain, a positive experience when they do can actually make them likely to recommend the provider.

The Solicitors Regulation Authority (SRA) has brought in the Insolvency Practitioners Association (IPA) to handle complaints against solicitor insolvency practitioners. It follows criticism by the Insolvency Service of the SRA.

There is a “small but material rate of non-compliance” by solicitors with their complaints-handling requirements – and some bad attitudes towards complaints – confidential research by the Solictors Regulation Authority has found.

Law firms will this year have to give the Solicitors Regulation Authority a detailed breakdown of the number and type of complaints they have received in the past 12 months, as part of the process of renewing their authorisation.

Complaints are a law firm’s best source of market intelligence. I’ve heard this said countless times in recent years, previously by the Legal Complaints Service and its many forebears, and now by the Legal Services Board. “Many lawyers are missing the chance to learn from substantial numbers of consumers who make a complaint,” said LSB chief executive Chris Kenny last week. It may well be true. But hardly any lawyer believes it.