Time to tackle shark practices of debt companies and their Scottish solicitors says GLC

Govan Law Centre (GLC) is concerned that the OFT's Debt Collection Guidance is being routinely ignored in Scotland not only by UK debt purchasing companies but more worryingly by certain firms of Scottish solicitors who undertake debt collection as one of the primary activities of business. 

Besides causing unnecessary human misery, unfair, oppressive, and disproportionate business practices are resulting in vulnerable Scottish homeowners being threatened with homelessness as creditors use inhibitions for tiny debts. The practice results in creditors being able to scupper Scottish Government mortgage to rent transactions, where families facing homelessness can have their house purchased by a social landlord. 

Although, the OFT expects solicitors firms who undertake debt collection work as one of their primary activities of business to obtain a 'Category F' consumer credit licence, most Scottish debt collection firms of solicitors operate under the Law Society of Scotland's 'group consumer credit licence'.  GLC believes this results in a lack of effective regulation of Scottish law firms undertaking debt collection work because the Law Society of Scotland does not specifically regulate such work, and therefore, this work appears to be largely unregulated in practice.

GLC's Mike Dailly said:

"To give an illustration of the problem, we have a case in Glasgow where it has taken us many months to defend a repossession action and broker a complex mortgage to rent transaction, which is now being thwarted by a Scottish firm of solicitors acting on behalf of an English debt purchasing company for a debt of £810.  Last month the company was prepared to accept repayment at £5 per week, but since obtaining an inhibition it wants all of the money as a lump sum".

"Our client is on incapacity benefit and has offered £100 plus £5 per week but the company's solicitors advise their client says no. We believe this Scottish law firm and company have engaged in aggressive, oppressive, and unfair practices contrary to the OFT's expected standards for consumer debt recovery, and contrary to section 25 of the 1974 Consumer Credit Act".

"Govan Law Centre is considering all legal remedies available to our clients against such companies and their Scottish solicitors - including where appropriate 'naming and shaming' - however, it is quite clear there is a major regulatory role here for the Law Society of Scotland which needs to be addressed, a need for the OFT to intervene, and ultimately a pressing need for the Scottish Government to review the ability of their own Mortgage to Rent scheme to be de-railed by unsecured creditors with relatively tiny debts through the inappropriate use of inhibitions".

Move to end time bar for abuse victims

The Herald reports that Scots lawyers have called for a change in legislation north of the Border to make it easier for abuse victims to claim compensation. The move comes after an English High Court ruling opened the door to people who suffered at the hands of priests to sue the wider Catholic Church as vicariously liable in tort (delict in Scotland) and not just the individual.

While the ruling in England is not binding in Scotland, human rights lawyers Mike Dailly, of Govan Law Centre, and John Scott, of Capital Defence Lawyers, say it is a significant step that would offer a “persuasive” precedent in the argument if such cases are now raised in Scotland.

Currently actions relating to personal injuries have to be brought within three years, or in the case of children within three years of turning 16, unless certain exceptions apply or the claimant can persuade the court that it would be equitable to disapply the time bar. A Scottish Parliamentary committee will shortly examine a Scottish Government proposal to extend the time bar to five years, but campaigners say this does not go far enough.

GLC's Mike Dailly said: “Very often the nature of sexual abuse is such that many vulnerable people cannot even speak of it until after the time bar has elapsed. The Scottish Government has so far refused to change the law here, but it cannot be right that a victim of sexual abuse in Scotland should be denied access to justice due to a technical time bar rule – justice demands change here.”

Public consultation on Property Factors (Scotland) Act 'Code of Conduct'

The Scottish Government has launched 12-week consultation on a proposed statutory Code of Conduct, to be made under the Property Factors (Scotland) Act 2011, which was passed by the Scottish Parliament earlier this year.

Property managers administer communal areas, roofs and stairwells in an estimated 225,000 flats and tenements across Scotland. Land maintenance companies look after the common green space on many new housing estates. The act, which comes into force no later than October 1, 2012, aims to provide protection for homeowners in Scotland who receive services from property factors.

Compulsory registration for all property factors and a tribunal based dispute resolution process for homeowners will be introduced.

Minister for Housing and Transport, Keith Brown said: "Property managers have an important role to play in maintaining and improving housing stock condition and open space. While the majority of property factors provide a good, effective service, the Scottish Parliament voiced concerns about how some property and land management services are delivered".

"The act will provide protection for homeowners in Scotland who receive services and the code of conduct is a central element of that act. “I would urge everyone with an interest in this important issue to respond to the consultation.”

During the consultation period the Scottish Government will hold a series of consultation workshops for property factors and for homeowners and members of the public. The act was introduced as a member’s bill drafted by GLC on behalf of Glasgow MSP, Patricia Ferguson. The Scottish Government supported the bill and worked with Ms Ferguson to make the legislation as effective as possible.

The consultation will run from Monday 26 September until Friday 16 December.

GLC's Principal Solicitor wins Solicitor of the Year

This years Solicitor of the Year award has been given to Govan Law Centre's Mike Dailly at a gathering at the Hilton in Glasgow last week.

The prestigious award was determined by an independent panel of Scottish judges, chaired by former Secretary of State for Defence, the Rt Hon Lord Browne.  Mike is now the only solicitor to have won the award twice, having previously won in 2007.

The award for Legal Personality of the Year was given to Maggie Scott QC and Legal Academic of the Year went to the late Elaine Tyre. The 2011 Lifetime Achievement Award was given to Lord Rodger of Earlsferry who sadly passed away earlier this year.

Heather goes to Holyrood

Heather MacKay

Govan Law Centre solicitor, Heather Mackay, has commenced a three month personal sabbatical to take part in an internship programme with the Scottish Liberal Democrats in Edinburgh.

During her internship, Heather will gain experience working in the Scottish political process and will have the opportunity to further understand the system of law-making in Scotland. Heather will be spending time in Holyrood and local parliamentary constituency offices.

Heather said: "This is a fantastic opportunity and I am extremely excited to be able to take part in the internship programme. I am looking forward to putting the skills and experiences I acquire to good use upon my return to Govan Law Centre in December.". 

Recruitment: Temporary position for qualified solicitor at GLC

GLC has a vacancy for a solicitor qualified in Scots law on a temporary basis. Applications by letter and CV should be addressed to the Principal Solicitor, Govan Law Centre, 18-20 Orkney Street, Glasgow, G51 2BZ. The closing date for applications is Friday, 2 September 2011.

Former Deputy Editor of The Sunday Post appointed by Govan Law Centre

Govan Law Centre has appointed Colin Grant, the former Deputy Editor of The Sunday Post, as its media consultant, advising on, and handling, a wide range of media, communication and public relation projects for GLC. Colin is currently the Director of Spectrum PR.

Among Colin's many achievements at DC Thomson was the establishment of the award-winning CHAS (Children’s Hospice Association Scotland) campaign, which Colin ran single-handedly for four years from 2001-2005. During that period The Sunday Post raised a record £4 million which helped build and run Scotland’s second children’s hospice, Robin House, near Loch Lomond. In addition, Colin created the highly-successful Scottish Curry Awards.

GLC's Principal Solicitor, Mike Dailly said: "We are delighted to welcome Colin Grant to Govan Law Centre as our media consultant.  Colin is an outstanding journalist with a first class track record and Govan Law Centre's Board of Trustees is confident he will make a major contribution to our work".