The Solicitors Regulation Authority (SRA) has issued a comprehensive update highlighting growing concerns about the way high-volume consumer claims are being handled in the legal sector. While this model can provide an accessible route for consumers to enforce their rights, the regulator warns that poor practices by some law firms and claims management companies (CMCs) are exposing the public to harm and undermining trust in the profession.
High-volume claims typically arise when large numbers of consumers pursue compensation from the same organisation or for similar issues, including housing disrepair, motor finance commission, data breaches, diesel emissions and flight delays. Many claims are marketed on a “no-win, no-fee” basis, but the SRA notes increasing evidence that some firms are failing to act in clients’ best interests, lack transparency around fees and funding arrangements, and may not be complying with referral and onboarding rules.
The collapse of SSB Law Ltd in 2023, which left clients facing unexpected adverse costs despite no-win-no-fee agreements, illustrates the risks. As at 31 October 2025, the SRA has 76 open investigations into 61 firms operating in this area.
To address these issues, the SRA is progressing a multi-faceted programme of work involving investigations, rule reviews, thematic analysis, policy development, and close collaboration with the Financial Conduct Authority (FCA) and other regulators. It has also required firms to complete mandatory compliance declarations and published extensive guidance to assist both the public and law firms, including a no-win-no-fee consumer guide and materials on motor finance commission claims. The SRA emphasises that ensuring a safer, transparent claims market remains a regulatory priority.