Autorecbots go Mean

One of the elements of the “Settlement Deed” between TLS and the LSC was a new and supposedly better contract reconciliation process. That said we have of course experienced circumstances where firms were facing SMP reductions whilst within the 10% protective band.
In a different take yesterday we did a reconciliation for a firm not only keeping up with monthly payments but doing a bit better. In fact they were doing so much better that an upward revision of the SMP was warranted. The LSC however have declined indicating that this would not be made until the firm was over 10% out in the opposite direction, i.e. over 110% of reporting against contract monies paid. This is no small sum and they do fall short. The cash flow benefit of a readjustment will not therefore be forthcoming.

About Author: SP

3 comments on “Autorecbots go Mean

  • Yes and the idiots at the Law Society agreed to this. I for one had no idea that this was what was being proposed because if I had I would have raised the roof. its not just the LSC that has got us all into this mess. The Law Soc must take its share of the blame. Anyone disagree with that proposition?

  • It’s actually a little more draconian than that:
    (c) except in exceptional circumstances, to adjust Standard Monthly Payments
    only at the review points identified in the SMP Reconciliation Protocol;
    (d) if your account goes out of the acceptable band at (b) above, to reconcile
    the balance of Claims to Payments within 6 months of a review
    So this is effectively the end of Ad Hoc reviews and payments on my reading?

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