Solicitors Regulation Authority reviews high-volume consumer claims sector

The Solicitors Regulation Authority (SRA) has published a discussion paper: How can the high-volume consumer claims market work better for consumers?

The SRA uses the term high-volume claims to refer to situations where large numbers of consumers file claims against the same organisation or in relation to the same issue. It notes that 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. The discussion and opportunity to give feedback is therefore very relevant to financial services firms, particularly those operating in the retail sector.

As the title of the discussion paper suggests, the review is prompted by concerns as to how the high-volume claims market operates and the potential for consumers to be harmed. In particular, it notes that some of the issues cut across multiple sectors and regulatory regimes, including claims management, finance and insurance, and that it is working closely with a range of organisations and government departments who share its concerns (referring in particular to the warning to law firms and claims management companies around poor practice in motor finance commission claims, which was published jointly by the SRA and Financial Conduct Authority).

The paper sets out five "key challenges" where the SRA believes the current regulatory regime could be strengthened, including: "Delivering wider improvements across the system for consumers in high-volume claims processes". In respect of this challenge, the paper notes that, as well as law firms, consumers seek help from claims management companies who are regulated by the FCA (and other unregulated providers). The paper notes that this has led to a fragmented landscape, emphasising the importance of different organisations working together and giving the example of the close work between the SRA and FCA in motor finance commission claims. Interestingly, there is a suggestion that there may be changes to how the SRA regulates the market where it benefits the public.

The discussion paper states the SRA's view that maintaining the status quo is "not an option", given the scale and range of issues it is seeing in this area. It says it is exploring a wide range of options, including changes to its rules and regulations which would be subject to formal consultation in 2026. Stakeholders are invited to make submissions by 14 November 2025.

For more details, please see our Litigation blog post.