English regulator considers ban on ‘no win, no fee’ ads

The SRA today invited views on the regulation of high-volume consumer claims, including those related to housing disrepair, data breaches, flight delays, diesel car emissions, motor finance commission, and other financial services.

The regulator says it is already stepping up robust action to investigate poor practice and protect consumers from harm, having launched investigations into 76 law firms and written to more than 500 others.

A discussion paper published today identifies five main challenges, which include transparency and clarity for consumers about their claim. As part of this, the regulator is inviting views on whether “no win, no fee” adverts should be restricted, caveated or banned outright.

Solicitors in Ireland have long been banned from advertising their services as “no win, no fee”, though the arrangement itself is permissible. In Northern Ireland, “no win, no fee” arrangements are banned outright.

The paper also identifies challenges around third-party litigation funding, after-the-event insurance, the regulation of firms working in high-volume consumer claims, and the need for wider improvements across the system.

Anna Bradley, chair of the SRA board, said: “The risks and issues we are seeing in the high-volume consumer claims market are unprecedented.

“We are already investigating 76 law firms and are continuing to gather evidence from others, so we can identify where else we need to intervene.

“Too many firms don’t have their house in order, so we need to use all the levers at our disposal to protect consumers and identify poor practice.”

The regulator is seeking feedback on the challenges and questions raised in the paper by 14 November, with insights from the exercise to inform future policy development and a consultation on more specific proposals next year.