On 22nd August 2025, the SRA published the findings of its latest thematic review into high-volume consumer claims, raising what it describes as “significant concerns over poor practice” among some law firms.
According to the regulator, failings in this area risk undermining public confidence in the legal services and the benefits of high-volume claims in improving access to justice.
Background To The SRA’s Review
The SRA’s review was initiated following several failed high-profile cases of legal services firms specialising in high-volume claims work. Their main concerns were that this particular sector of the legal market was not “working as well as it should” be and that firms working in this area of law do not:
- Have the necessary protections in place to safeguard the public
- Keep consumers informed and give them the full and correct information about their cases, and how no-win no-fee arrangements work.
The types of cases under review by the SRA include potential mis-selling of financial products and services, data breaches, diesel emissions, flight delays, housing disrepair or cavity wall insulation.
As the SRA explains in the introduction to the review report:
“We, and others in the industry, are growing increasingly concerned about issues we are seeing across the high-volume consumer claims market. Our concerns pertain to this area of the market not working as well as it should, which is leading to potential risks to consumers, and eroding trust and confidence in the solicitors’ profession”.
The scale of the problem is considerable. The SRA states that as of 31st July 2025, they had 95 open investigations in relation to 76 firms handling hundreds of thousands of claims.
How The SRA Approached The Review
As part of the thematic review, the SRA focused on 129 SRA-regulated firms working in the high-volume claim field. To gather the necessary information for the review, the SRA requested information from each firm on the type and volume of claims work they handled, whether they had referral arrangements in place, and whether they used litigation funding.
The SRA also visited 25 firms between October 2024 and January 2025 to conduct interviews with relevant heads of department. They also reviewed case files, learning and development records, and policies and procedures for how consumer claims are handled.
What Did The SRA Review Find?
The SRA’s findings paint a mixed picture, with evidence of good practice in some areas but widespread shortcomings in others. They found that only 11 of the 25 firms visited could show that they had provided all required client care information to every claimant. Similarly, only 12 firms could produce full records to prove they had shared all the required information concerning costs and funding arrangements. These gaps raise questions about whether clients are consistently receiving clear and accurate information about the risks, benefits, and potential liabilities involved in pursuing claims.
The SRA uncovered the following key issues during their review into high-volume legal claim providers:
- Not fully considering clients’ best interests when entering into litigation funding or referral arrangements, and failing to carry out proper due diligence on new agreements.
- Not providing clients with clear and comprehensive information about costs, funding methods, and the options available to them.
- Falling short of regulatory requirements when arranging After the Event (ATE) insurance.
- Weak procedures for ensuring that referrers operate in line with the firm’s regulatory duties.
- Insufficient client onboarding, including inadequate checks on identity, sanctions, and conflicts of interest.
- Failing to give clients proper advice on the merits of their claim and the likelihood of success.
Firms were told to take immediate remedial action if they identified shortfalls in their policies or practices. As Anna Bradley, SRA Chair, explained, “High-volume consumer claims can provide access to justice for many when done well. However, there are widespread issues in the market, and this is harming consumers…We are writing to firms requiring them to declare that they understand our rules and are complying with them. Where we see poor practice, we will take robust action”.
The SRA has now placed nine of the 25 visited firms under active investigation.
Final Words
By requiring mandatory declarations, carrying out firm visits, and conducting file reviews, the SRA has clearly signalled that compliance in this area will be subject to robust and ongoing scrutiny. Where the SRA see firms failing to take the necessary steps, they will take robust action against them.
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