SRA steps up action to tackle consumer risks in high-volume claims and litigation funding
The Solicitors Regulation Authority (SRA) has outlined a wide-ranging programme of work to tackle risks in the high-volume consumer claims sector, where millions of claims are handled by law firms and claims management companies.
In an update published on 14 July 2026, the regulator said high-volume consumer claims can provide an important route to justice by allowing large numbers of people to pursue claims against the same organisation or over the same issue. Common areas include housing disrepair, data breaches, flight delays, diesel emissions, motor finance commission and other financial services claims.
However, the SRA warned that poor professional standards and firm failures can expose consumers to significant harm and undermine confidence in legal services. It cited the collapse of SSB Law Ltd as an example of the disruption that can occur when firms operating in the sector fail.
The regulator said it has closed seven firms operating in the high-volume consumer claims sector that posed serious risks to consumers. As of the end of June 2026, it also had 94 live investigations involving alleged misconduct across 68 firms managing high-volume consumer claims.
To address emerging risks, the SRA has established a dedicated supervision function aimed at identifying problems earlier through increased engagement with firms before issues result in poor consumer outcomes.
The regulator said its work has identified seven key consumer harms, including inadequate information for decision-making, misleading practices, poor-quality legal services, financial loss, emotional harm, reduced access to legal services, and diminished public trust in the profession.
Research commissioned by the SRA found that many consumers could not recall receiving essential information before signing up to claims. Respondents also reported confusion about the claims process, limited awareness of free routes to redress, and uncertainty over fees and costs.
In response, the SRA is developing new onboarding materials, including checklists and key facts documents, to help consumers make more informed decisions. It is also exploring whether additional explanatory wording alongside the phrase “no win, no fee” could improve public understanding of the risks associated with such arrangements.
Alongside these measures, the regulator launched a 10-week consultation on 9 July 2026 proposing stronger requirements for solicitors who use or arrange third-party litigation funding in consumer claims. The proposals include notifying the SRA when such funding is used, carrying out and retaining risk assessments, providing clients with clear funding information before agreements are signed, maintaining independence from funders, protecting client confidentiality, and preparing orderly closure plans where appropriate.
The consultation remains open until 17 September 2026. The SRA said the proposals form part of its wider programme to improve consumer protection, strengthen confidence in legal services and support access to justice while helping firms meet their professional obligations.