In May, Ms Manzoor revealed that she would be levying a penalty of a quarter of a million pounds on the Law Society. This was because the Law Society had submitted a plan that she felt was inadequate for securing improvements to its complaints handling services for 1 April 2006 to 31 March 2007.

Yesterday, the Commissioner reported that a new plan for 1 April 2006 to 31 March 2007 had been agreed with the Law Society. She explained:

"Following productive discussions between myself and the Law Society, I am pleased to announce that we have today agreed a new plan aimed at bringing about improvements to the Law Society's complaints handling service. If implemented, this will mean a better complaints handling service for consumers and the legal profession alike."

"The Law Society has moved on a number of the targets it felt unable to include in its original plan, and achievement of these revised targets should ensure that complaints are handled more quickly and to a higher quality. I recognise the work of the Consumer Complaints Board in making this happen."

In particular, the Commissioner noted that the Law Society had agreed to work to a target that consumers will receive a substantive response to their complaint within 55 days with immediate effect. This was a great improvement on the Law Society's earlier position, which would have seen it aim for 58 days by the end of March 2007. She stated:

"In recognition of the Law Society's positive approach to discussions with me and its submission of this revised plan, I have decided to reduce the penalty I levied earlier this year by GBP30,000."

Also on Monday, the Commissioner announced her decision regarding the Law Society's performance against its Plan for 1 April 2005 to 31 March 2006. Ms Manzoor observed that the Law Society has failed to handle complaints in accordance with its Plan, but said that she will not be levying a penalty for this failure.

She explained:

"Of the three targets the Law Society did meet, it exceeded them, and on six of the seven targets, the Law Society has improved compared to last year. For example, over 1,000 more consumers had their complaint closed within six months compared to last year. Its complaints handling operation is, in parts, a more efficient and better performing operation since my office was created and progress was certainly made this last year."

Professor Shamit Saggar, Chair of the Consumer Complaints Board responded:

"It is gratifying that the Legal Services Complaints Commissioner has recognised the achievements of the last year against what was for the Law Society an ambitious plan. Her office has further encouraged the Consumer Complaints Service to build upon the service improvements it has achieved during recent years.

Fiona Woolf, Law Society President, added that:

"I am pleased that Zahida Manzoor and the Consumer Complaints Service have agreed a plan for the next twelve months. A constructive relationship can only contribute to the delivery of exemplary levels of service for consumers making the most of the Law Society's significant investment in complaints handling."