SRA seeks input to enhance claims protection

The Solicitors Regulation Authority (SRA) is intensifying its efforts to safeguard consumers in high-volume claims by seeking further evidence regarding ongoing challenges in the sector. High-volume consumer claims involve significant numbers of individuals filing against the same entity or concerning similar issues, and are prevalent in areas such as housing disrepair, data breaches, motor finance, and flight delays.

A recent Thematic Review by the SRA highlighted alarming shortcomings among law firms in their duty to protect clients’ interests during these claims. Currently, the SRA is investigating 76 law firms and has requested compliance declarations from over 500 firms to collect vital information for its ongoing inquiries. Anna Bradley, Chair of the SRA Board, stated that “the risks and issues we are seeing in the high-volume consumer claims market are unprecedented,” indicating the extent of the problem.

In a new Discussion Paper, the SRA identified five key challenges within the market and invited public input, which will aid in crafting future regulatory action aimed at promoting a safer claims environment for consumers. These challenges encompass transparency in claims processes, the risks associated with third-party litigation funding, adequacy of insurance for clients, regulatory adaptability to market changes, and necessary system-wide improvements.

The SRA is collaborating with multiple regulatory bodies and stakeholders to address these critical issues, holding events and webinars to engage directly with various parties. Feedback on the Discussion Paper is sought before 14 November, with responses encouraged via a survey or email. The insights gathered will inform future policy developments, as the SRA plans to consult on more specific regulatory proposals in the upcoming year.