I think this is a further reflection of the publicity recently attracted to Insolvency.
Unfortunately the "something must be done" brigade often cause more problems than they solve.
Personally I have long beleived the value for money & fees debate has been supressed, but Im sure the OFT will only be looking at the "high profile" "big firms" when the abuses are at a much lower level.
studies involve an analysis of a particular market with the aim of
identifying and addressing any aspects of market failure from
competition issues to consumer detriment and the effect of government
regulations. Possible results of market studies include:
Am I the only one a tad concerned that finding nothing wrongt with us is relegated to an 'or even'. Nice to see there's no prejudging!
To quote Stauart (13 November), "Im sure the OFT will only be looking at the "high profile" "big firms" when the abuses are at a much lower level".
I think the OFT are likely to focus on the big firms, as that is where the high profile cases and headline fees go. However, the following two points spring immediately to mind:
1) What evidence is there that the abuses are at a much lower level in large firms? From our reviews around the country to practitioners in many different size firms, the potential for abuse arises in large as well as small, but it is usually appropriately dealt with. I'm not saying that large firms are better or worse, simply that from our experience there is not much to choose between them and the smaller firms. The main difference is that in a larger firm there is a greater likelyhood of a lot of small time abuses being overlooked, while in a smaller firm there may be more opportunity for the time on a case to be manipulated. In reality, what we generally see is properly charged time being correctly accounted for in line with creditor approval and the IP capping his costs where appropriate to the case. In many more cases we see the IP writing off time because there are insufficint realisations for him to be paid the money he has earned. But then, we only work for the good guys!
2) The elephant in the room for the big firms with the OFT having a look must surely be the operation of bank panels...