Reducing legal complaints: Why better client understanding is your best defence

Misunderstandings are a leading cause of legal complaints and disputes. Too often, a client ends up facing an unexpected charge or outcome they didn’t anticipate because they never fully understood the agreement they entered. The information might have been there in the fine print, but if it wasn’t communicated clearly, the result is confusion, frustration and, frequently, a formal complaint. In highly regulated sectors like legal and financial services – where trust is paramount – this kind of communication failure is costly, but it’s also preventable.

What this blog contains

• The high cost of contract misunderstandings
• Why client understanding is the best defence against disputes
• How clear communication can reduce complaints (and chargebacks)
• How i agree helps eliminate misunderstandings
• Conclusion: turning “I agree” into “I understand”

The high cost of contract misunderstandings

Poor communication isn’t just a minor hiccup – it has serious financial and legal consequences. Businesses spend enormous time and money resolving complaints and disputes that stem from simple miscommunications. For example, the UK’s Financial Ombudsman Service received over 165,000 new complaints in 2022–23 (Financial Ombudsman data), and roughly one in three complaints were upheld in the customer’s favour. In many cases, there was no intentional wrongdoing by the business – the issue was that the customer genuinely didn’t understand what they were agreeing to. When clients feel misled or confused, they’re more likely to file complaints, dispute charges (leading to costly chargebacks), or even pursue legal action.

The costs of these misunderstandings pile up quickly. A single complaint can trigger hours of work – internal investigations, emails, meetings, and reports – not to mention potential regulatory scrutiny. And for every official complaint, there may be many other unhappy customers who say nothing to you but quietly take their business elsewhere. Unclear communication leads to:

• Higher volumes of complaints and disputes
• More pressure on customer support and legal teams
• Greater risk of regulatory action or fines
• Damage to trust and your firm’s reputation

In short, confusion is expensive. Every unresolved misunderstanding carries both direct costs (refunds, legal fees, administrative time) and hidden costs (lost customers, tarnished brand reputation). The good news is that these issues are largely preventable by addressing the root cause: lack of client understanding.

Why client understanding is the best defence against disputes

The most effective way to reduce legal complaints is to stop misunderstandings before they happen. Ensuring that your clients truly understand what they’re signing up for is the best defence – both to prevent disputes and to protect your organization if a complaint does arise. When clients know exactly what they’ve agreed to, there are fewer surprises and thus fewer reasons for them to complain or launch legal challenges. And if a dispute does occur, you have a much stronger position: you can demonstrate that the client gave informed consent with full knowledge of the terms.

Regulators are increasingly reinforcing this point. The UK’s Financial Conduct Authority (FCA), for example, now expects firms to take “reasonable steps to ensure customers understand” the products and services they sign up for (as outlined in the new Consumer Duty). Similarly, the Solicitors Regulation Authority (SRA) requires solicitors to explain matters in a way that each client can grasp. In other words, ticking a box or obtaining a signature isn’t enough – you need proof that the customer actually understood the agreement. A landmark case in the legal industry (Belsner v Cam) highlighted that a client’s consent may not be valid if they didn’t comprehend the terms, shifting the focus from just getting a signature to making sure the client was treated fairly and clearly informed.

All of this means that fostering true understanding isn’t just good customer service; it’s a compliance imperative and a legal safeguard. When you prioritize client understanding, you’re essentially bulletproofing your contracts. You reduce the likelihood of disputes, and if a complaint does reach a regulator or ombudsman, you can show that you went above and beyond to ensure the client’s informed consent. As many experts note, many complaints arise from simple misunderstandings – and clear, documented communication is your insurance policy against that. Better understanding = fewer disputes.

How clear communication can reduce complaints (and chargebacks)

Improving client understanding starts with clear communication. By making your contracts and explanations more user-friendly, you dramatically reduce the chances of confusion and conflict. Here are some proven strategies to improve communication and ensure clients “get it” the first time:

• Use plain language: Ditch the legalese and technical jargon when possible. If you must use a complex term, explain it in simple terms. For instance, instead of saying “the facility will terminate upon the conclusion of the fixed period,” say “the loan ends after 12 months.” Plain English ensures that clients of all backgrounds can follow along.
• Highlight key points: Don’t bury the critical details in a wall of text. Make the most important terms or any unusual conditions stand out – use headings, bullet points, or bold text to draw attention. If a certain fee or policy will significantly affect the client, ensure it’s highly visible and clearly explained.
• Layer the information: Structure your communication so that it starts with the essentials and offers more detail for those who want it. For example, begin with a short summary or “key facts” section that covers the fundamentals of the agreement in a digestible way, then follow with the full terms and conditions below. This way, even skimmers will walk away with the crucial points, while those who need the nitty-gritty can still access it.
• Offer multiple formats: Not everyone processes information the same way. Some people absorb text easily, while others benefit from visual or auditory explanations. Consider providing important information in alternative formats – like a quick explainer video or an audio summary – alongside the written document. By catering to different learning styles (visual, auditory, etc.), you make understanding easier for a broader audience. (This is especially helpful for clients with low literacy or for whom English is not a first language.)
• Make it interactive and confirm understanding: Rather than a one-way dump of information, turn the process into a conversation. Encourage clients to ask questions about anything unclear. You can even build in brief knowledge checks – for example, ask the client to confirm they understand a particular term or have them verbally acknowledge key points. This not only engages them but also gives you a chance to correct misunderstandings in real time. When a client actively confirms their understanding, it’s far less likely they’ll later say “I didn’t realize what I agreed to.”

When you implement these practices, the payoff is significant. Clients who fully understand your contracts tend to ask fewer repetitive questions, are less likely to call in with confusion, and rarely feel the need to involve regulators or credit card companies for chargebacks. In fact, companies that use clearer, simpler language often see a measurable drop in customer support calls and complaints – one plain-language initiative showed that reducing jargon and improving clarity cut down inbound inquiries by double-digit percentages, simply because fewer customers were left scratching their heads (industry insight). In short, clarity upfront means less conflict later.

How i agree helps eliminate misunderstandings

Adopting the above strategies might sound daunting, especially for organizations with lengthy contracts or complex terms. This is where i agree comes in. i agree is a platform specifically designed to make agreements clear, human, and defensible. It transforms the way you present contracts so that clients actually understand and consent knowingly – providing you with solid proof of that understanding. Here’s how it works:

• Plain-language summaries: Instead of handing over a dense 20-page document and hoping for the best, i agree lets you generate a short, plain-English summary of the key terms. The platform intelligently distills your contract into the must-know bullet points that a person can read or hear in under a minute. This summary conveys the essence of the agreement in a way that’s easy to digest, ensuring nothing important gets overlooked.
• Voice and video explanations: Sometimes reading isn’t enough. With i agree, you can provide a quick voice note or selfie video that walks the client through the key points of the contract. Hearing and seeing a real explanation – perhaps accompanied by visuals or a friendly face – makes the experience more engaging and personal. It leverages the fact that people often comprehend and remember spoken information better than text. (We explore this modern “voice/video consent” approach further in our article on voice and video consent as a future-proof alternative to signatures.) The bottom line is that a client watching a 30-second video of their lawyer or advisor explaining a contract is far more likely to feel confident and informed than if they just scroll through a PDF full of fine print.
• Interactive Q&A and confirmations: i agree doesn’t just present information; it engages the client. The platform allows clients to easily flag any part of the agreement they have questions about, and you can provide prompt clarifications. It also prompts clients to actively confirm their understanding of each key term. For example, after a summary of a fee or obligation, the client might click “I understand” or verbally acknowledge that section. This way, understanding is not assumed – it’s confirmed. Every such interaction is logged.
• Secure audit trail of informed consent: Perhaps most importantly, i agree creates a detailed record of exactly what was presented to the client, how it was explained, and the client’s responses. The platform time-stamps every summary viewed, every video played, and every “yes, I understand” confirmation from the client. This gives you a powerful audit trail showing the client was given all the key information and that they acknowledged understanding it. If a dispute ever arises, you can pull up this record and demonstrate to regulators, ombudsmen, or courts that you went above and beyond to ensure informed consent. It’s far more defensible than a simple signed document.

i agree is built to meet strict legal and compliance standards too. Under UK law (and many other jurisdictions), a recorded verbal or video agreement can be just as binding as a signature – as long as you have evidence of offer, acceptance, and intention. Our platform captures that evidence in a format that’s compliant with regulations and easily reviewable. (For details on how we comply with specific laws and industry rules, see our legal & compliance page.) In essence, we go beyond a traditional e-signature – instead of simply collecting an electronic squiggle or a checkbox, i agree records understanding.

The result? Fewer complaints and stronger cases. Businesses using i agree have a much lower incidence of “I didn’t realize…” moments from clients. By the time the client finishes the i agree process, they have actively engaged with the material and confirmed their knowledge of it. This dramatically lowers the chances of disputes or chargebacks later on. And if a client ever does protest, you are equipped with clear proof that the person knew what they were agreeing to in plain terms. It transforms potential he-said/she-said scenarios into factual demonstrations of informed consent. Moreover, this approach shows regulators that your firm puts fair treatment and transparency first – which can be a lifesaver under frameworks like the FCA’s Consumer Duty. (For a deeper dive into how focusing on understanding over signatures benefits businesses and clients, check out our post on clear communication as the key to fewer complaints and disputes.)

Conclusion: turning “I agree” into “I understand”

Legal complaints, chargebacks, and disputes don’t arise out of nowhere – in large part, they stem from people feeling misled or uninformed. The simplest and most effective way to protect your business is to make sure those people never feel that way. When communication is clear and clients truly understand what they’re agreeing to, there are fewer surprises, fewer objections, and drastically fewer complaints. It builds trust and goodwill, and it keeps you on the right side of both your customers and the regulators.

On the flip side, failing to ensure understanding can cost you dearly. As we’ve seen, confusion can quickly snowball into formal complaints or legal challenges, which consume resources and erode relationships. Clarity, by contrast, is far cheaper – it prevents problems before they start. Every minute you invest in explaining things clearly is an hour saved dealing with disputes later. Or put more bluntly: confusion is expensive, clarity is priceless.

Empowering clients with understanding is not just a defensive move; it’s a positive business strategy. Clients who feel informed are happier and more confident. They are more likely to remain loyal and recommend your services, and less likely to cause conflicts. By using tools like i agree, ensuring understanding becomes a seamless part of your workflow rather than an extra burden. You can turn contracts into conversations and agreements into genuine mutual understandings.

It’s time to make sure that when a client says “I agree,” it genuinely means “I understand.” By prioritizing clear communication and leveraging modern solutions designed for this purpose, legal professionals and compliance teams can significantly reduce complaints and disputes. The payoff is a more trusting client base, a stronger reputation, and a lot less time spent firefighting issues that never needed to occur. In the end, a well-understood client is a satisfied client – and your best guarantee against legal headaches down the line.

Ready to experience the difference? Explore how i agree can help your firm turn agreements into understanding – check out our FAQs or learn more about improving consumer understanding.