The Solicitors Regulation Authority (SRA) recently completed a major review into how law firms manage large volumes of consumer claims. These cases include data breaches, mis-sold financial products, housing issues, and emissions claims. The review highlighted a number of failings across the industry. Some firms were not clear about fees, funding, or insurance. Others carried out only weak checks when taking on new clients. In some cases, agreements with funders and insurers did not put the client’s interests first. As a result, many people who turned to claims companies for help did not always receive the transparency and protection they were entitled to.
Key Findings from the SRA Review
The SRA’s thematic review provides a detailed picture of the high-volume claims market.
- Firms reviewed
– 129 firms were surveyed, with 25 subjected to in-depth visits.
– Together, they were handling around 2.4 million active claims in areas such as data breaches, financial mis-selling, emissions, and housing disrepair. - Main issues identified
– Client interests not always prioritised, with commercial arrangements sometimes taking precedence.
– Limited transparency about costs and risks, including funding arrangements, After-the-Event (ATE) insurance, and potential liabilities if claims were unsuccessful.
– Weak compliance when onboarding clients, with gaps in ID checks, conflict checks, and sanctions screening.
– Insufficient due diligence on third-party funders and problems in the way ATE insurance was managed.
– Inadequate documentation, with poor records of client care information and compliance steps. - Regulatory response
– At the time of reporting, there were 95 live investigations into 76 firms.
– Firms in this sector are required to submit compliance declarations by October 2025.
– The SRA has warned that failure to comply may result in disciplinary action.
How Claim My Loss Puts Clients First
At Claim My Loss, we have built our service to meet and exceed the standards set out by the SRA. Everything we do is focused on protecting clients and ensuring their interests come first.
- Clear and transparent advice: Fees, funding, and insurance are explained in plain English, so there are no surprises.
- Robust compliance checks: We carry out thorough ID verification, conflict screening, and sanctions checks before starting any claim.
- Responsible partnerships: We only work with funders and insurers who share our values and commitment to client care.
- Client-focused decisions: Every step is guided by what is best for the client, never by commercial gain.
- Proper records and accountability: Client care information and compliance steps are fully documented in every case.
In short, while the SRA found widespread problems across the sector, Claim My Loss is proud to offer a transparent, responsible, and client-focused service.
Raising Standards in Client Protection
The SRA’s review highlighted that too many firms still fall short on compliance and client protection. Claim My Loss takes a different approach. By providing clear information, strong safeguards, and a service built around clients’ interests, we make sure every claim is managed responsibly and with the highest standards of care.
