Our members have raised concerns about poor practices among some firms operating in this space, including inadequate client engagement, misleading marketing, speculative claims, and disproportionate use of data access requests.

Our response calls for urgent action to protect consumers and reduce operational burdens on financial institutions. Key recommendations include:

• Regulatory alignment – Harmonising SRA rules with FCA standards to close gaps exploited by high-volume firms.
• Better oversight of third-party funders and data practices – Including guidance to discourage bulk or speculative data requests and improve transparency around funding arrangements.
• Clearer onboarding and disclosures – Standardised templates to ensure consumers understand claim scope, costs, and alternatives.
• Tighter controls on “no win, no fee” – Restricting or qualifying the term to prevent misleading impressions of risk-free litigation.

The current regulatory framework has not kept pace with the industrialisation of claims handling. Without reform, consumers remain exposed to harm and financial firms face unnecessary costs and delays. UK Finance will continue to work with the SRA and other stakeholders to deliver meaningful improvements across this market.