7:30 am, January 15, 2024
Motor trade legal advisors Lawgistics have been cleared of any wrongdoing after an investigation by the Solicitors Regulation Authority (SRA).
Following a complaint by one of its competitors, Lawgistics was probed by the authority regarding the services it offers car dealers.
The competitor also threatened to report Lawgistics to the Advertising Standards Authority and the police, neither of which felt they needed to investigate the complaint.
The legal firm works with hundreds of new and used car dealers across the country to help advise them with disputes. It was prominent during the Covid-19 pandemic helping car dealers navigate the rules and often appeared on our Car Dealer Live videos giving advice.
Following the complaint, the SRA investigated Lawgistics – as is its legal duty when a complaint is received – but it has since written to the company clearing it of any wrongdoing.
Joel Combes, managing director of the company (pictuired), told Car Dealer: ‘When we received the complaint we immediately replied to the firm and explained our legal position and corrected them on their interpretation of the law.
‘The ASA or police did not turn up, but after allegations against Lawgistics were made to the SRA so they were obliged to follow up.
‘I am pleased to say the investigation is now closed and, although we always knew we had done nothing wrong, the outcome has actually put us in a better position than when we started.’
The investigation went on for seven months and looked at how Lawgistics corresponds with its customers and consumers, its processes and how the company is set up.
Lawgistics changed the way it worked last year following a landmark legal case and set up ‘Lawgistics Litigation for the Motor Trade CIC’. This is a ‘Community Interest Company’ and provides subsidised legal support for the motor trade community.
This effectively gives Lawgistcs the ability to help car dealers navigate cases, even if they go to court, but at a fraction of the cost of high street solicitors. It’s this, believes Combes, that his rivals really took issue with.
Combes said Lawgistics is very clear that ‘the CIC is not a regulated entity’ but is managed by the company’s head of legal services, Nona Bowkis, who is a solicitor regulated by the SRA.
He added: ‘We are transparent about the way we work and have made our fee system both straightforward and fair.’
Bowkis added: ‘It was hugely disappointing to be reported by a rival firm the day after we launched our new service.
‘The fact they showed such a poor understanding of the law was quite shocking. However, we knew we had everything right and I am pleased that this has now been endorsed by the regulator.’
