News release

SRA acts on concerns about law firm practices on high-volume claims

22 August 2025

Our latest review into how law firms handle high-volume consumer claims has highlighted significant concerns over poor practice.

The findings suggest some firms could be failing in their duty to protect and promote clients' best interests when pursuing claims, potentially leading to direct risk and harm to the public. The report reinforces concerns emerging from our wider proactive investigations, which already suggested widespread issues across the sector.

We are taking the exceptional step of contacting firms active in the high-volume claims sector requiring them to complete a mandatory declaration confirming they understand and are following our rules. If, in considering their return, firms identify areas in which they need to improve their approach they should take immediate action.

We have previously issued a range of guidance and warning notices reminding firms of their regulatory obligations when conducting claims work. The findings of the review make it clear that some firms are not heeding these.

We continue to take action where we uncover evidence that firms are not complying. As of 31 July 2025, we had 95 investigations open relating to 76 law firms linked to potential misconduct while delivering high-volume claims work.

Anna Bradley, Chair of the SRA, said: '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 they understand our rules and are complying with them. Where we see poor practice, we will take robust action.'

As part of our review, we surveyed 129 law firms active in the high-volume claims market, who were together handling more than 2.4 million live claims. We further conducted in-depth visits to 25 of these firms and detailed reviews of 50 case files.

Only 11 of the 25 firms visited could evidence that they had shared the required client care information with all claimants when taking them on, and only 12 had records which proved they had shared all the required information on costs and how claims would be funded. As a result of the review,  we are investigating nine of the 25 firms visited.

Key issues identified in our review include:

• Firms failing to consider the best interests of their clients when entering into funding and referral arrangements, or deciding how a claim is to be progressed
• Clients not being given transparent information on costs, potential liabilities if a claim fails or the merits of a claim before entering into an agreement
• Poor or non-compliant approaches to how arrangements that should underpin 'no-win no-fee' arrangements are being arranged or managed.

The findings are also feeding into wider work  in response to concerns about high-volume consumer claims work.