News release

SRA calls for views to shape further robust action on claims

19 September 2025

We are calling for further evidence on the challenges facing consumers that join high-volume claims as we step up the robust action we are taking to investigate poor practice, and to protect consumers from harm. 

High-volume consumer claims arise when large numbers of consumers file claims against the same organisation, or in relation to the same issue. Such claims activity is currently concentrated in areas including housing disrepair, data breaches, flight delays, diesel car emissions, motor finance commission, and other financial services.

Our recent Thematic Review, concluded that many firms were failing in their duty to protect and promote clients' best interests when pursuing these claims.

We are already investigating 76 law firms involved in such claims, and have recently written to more than 500 other firms asking them to complete a mandatory declaration of compliance, the results of which will be studied by our investigation teams.

Our Discussion Paper identifies five main challenges with the way the sector is operating, and invites views from a wide range of people on these. These insights will inform future action we will take in using our regulatory powers to support the creation of a safer claims market for consumers.

Anna Bradley, Chair of the SRA Board, said: 'The risks and issues we are seeing in the high-volume consumer claims market are unprecedented. We are already investigating 76 law firms and are continuing to gather evidence from others, so we can identify where else we need to intervene.

'Too many firms don't have their house in order, so we need to use all the levers at our disposal to protect consumers and identify poor practice'.

The discussion paper has identified five main challenges. These are:

1. Improving transparency and clarity for consumers about their claim. For example, does the term 'no win, no fee' give consumers a false sense of security and should it be restricted, caveated or banned?
2. Managing risks around third-party litigation funding.
3. Making sure after-the-event insurance meets consumers' needs.
4. Making sure regulation keeps pace with a changing market. For example, should we consider changes to the way we authorise and monitor firms working in high-volume consumer claims?
5. Delivering wider improvements across the system for consumers in high-volume claims processes.

We are working with the Ministry of Justice, the Financial Conduct Authority (FCA), the Royal Institution of Chartered Surveyors, the Ministry of Housing, Communities and Local Government and the Legal Services Board, among others, to tackle these issues. We will also be engaging directly with stakeholders through a series of events and webinars over the autumn, and through carrying out research.

Feedback on the challenges and questions raised in the paper is requested before 14 November with respondents asked to complete a survey or to email any comments.

Insights from this exercise will inform future policy development and we expect to consult next year on a series of more specific proposals, to enhance our regulatory approach.