Very few jurisdictions have implemented clear and comprehensive rules for legal techs. Therefore, in many countries there is still a great deal of legal uncertainty in the development, licensing, application and monitoring of this – relatively new – field. In January 2021 the German Government finally proposed legislation to set ground rules for the competences and legitimacy of legal tech companies, operating as debt collection firms in Germany.
At the LPI Webinar the renowned expert, Markus Hartung, explained the German legislation and how legal advice and representation in legal matters are generally reserved for lawyers, as a consequence, rendering legal services provided by legal insurers inadmissible. The main topic was the German Government’s proposal for regulating legal tech in the future and whether the new law will solve the substantive legal issues regarding competences and legitimacy of legal tech companies, operating as debt collection firms in Germany. Unfortunately, the new law will not change the situation of legal protection insurers in Germany who will, after all, be excluded from the legal services market.