News release

Research highlights risks in high-volume consumer claims sector

02 July 2026

A new report has found that, while high-volume consumer claims can provide an important route to redress, many people experience problems or are unclear about what they have signed up to.

The findings are helping to inform how we can better protect the public and build confidence in legal services, including where claims are pursued through 'no win, no fee' funding models. The high-volume consumer claims sector remains a key priority for us, with significant work already under way.

The independent research we commissioned was carried out by YouGov, and it found that while a majority (59%) of people said they were satisfied with the outcome of a claim they had taken, more than half (54%) reported problems during the process. Most common issues included delays, poor communication and a lack of clarity.

Many were unclear about when they had formally signed up to a claim, while only 21% of those using a law firm or claims management company (CMC) reported being told about cost information at the start of the process.

As one of the first, large-scale consumer studies of this industry, the research adds to the wider body of evidence on potential issues in the sector which we have gathered from our wider regulatory, supervisory and stakeholder engagement. This body of evidence on potential harm being caused to consumers reinforces why the issue is one of the priority areas within our current and future work programmes.

Aileen Armstrong, Executive Director of Strategy and Policy, said: 'Hearing directly from consumers is vital to understanding where this sector is not working as it should and where people might be at risk of harm. These insights are helping us sharpen our focus as we tackle problems in the high-volume consumer claims market, building on the action we are already taking through investigations, supervisory work, engagement with law firms, and close working with other regulators and stakeholders.'

The research also provides important evidence about where consumers may need clearer information at the start of a claim. In addition to cost information challenges, only a minority of consumers using a law firm or CMC reported that they had been provided information on areas such as:

• whether there was a cooling-off period (13%)
• potential liabilities they might face (14%)
• how much it would cost to pursue a claim (21%)

Other key findings included:

• online forms were commonly used to check claim eligibility and were generally seen as simple to use. But it was not always clear to consumers what authority they were giving, with some being signed up to progress a claim without realising it.
• 72% of those who resolved a claim through a law firm were satisfied with the outcome (compared to 59% across all means), however only 51% of those using a firm were satisfied with the service provided.

The findings also suggest some consumers might be more exposed to harm than others. People from lower socio–economic backgrounds or with additional support needs were more likely to have experienced confusion, lack of support, and poorer outcomes.

We have published support and guidance for both the legal profession and the public. We are also continuing to check that regulated firms in this sector are operating as they should, while working with other stakeholders on longer-term, industry-wide issues that affect how consumers are protected.

This research forms a part of a broader programme of work under way to address concerns in this market, including a thematic review published in August 2025 and a mandatory declaration exercise requiring firms to confirm compliance with relevant rules. We are also developing and testing onboarding materials, including checklists and key fact documents, with consumers and firms, and will pilot these shortly.

We are working closely with other regulators and organisations where issues span multiple sectors. On 30 March 2026, we announced a joint motor finance taskforce with the FCA, Information Commissioner's Office and Advertising Standards Agency focused on poor claims handling by some law firms and claims management companies. We are also supporting the FCA's market study into claims management services, with a particular focus on financial services and housing disrepair claims.

As of the end of June 2026, we had 94 open investigations relating to 68 firms that manage high-volume consumer claims. Between them, these firms are handling millions of claims.