SRA acknowledges mistakes in SSB review

The Solicitors Regulation Authority (SRA) has issued an apology and fully accepted the recommendations of an independent review concerning SSB Law Group Ltd (SSB). This review was commissioned by the Legal Services Board (LSB) and conducted by solicitors Carson McDowell, focusing on the SRA’s responses to reports about SSB from January 2019 to March 2024.

SSB became embroiled in controversy due to its mishandling of ‘no win, no fee’ cavity wall insulation claims, leading many consumers to be unexpectedly pursued for adverse legal costs. The firm ultimately entered administration in January 2024. Anna Bradley, Chair of the SRA, expressed the agency's regret, stating that ‘We are sorry that we did not act more quickly in relation to SSB, and that issues in our handling contributed to the harm and distress suffered by the many vulnerable consumers affected.’

Bradley acknowledged the importance of learning from this incident, asserting that ‘We fully accept the recommendations of this review and are committed to doing all we can to learn from this event and to implement its recommendations.’ She further noted the necessity for the SRA to improve its risk assessment methods, stating that ‘The case showed that we need to continue changing the way we spot and assess risk and use data so that we can proactively identify new and emerging risks and threats and act on them before consumers suffer.’

Following its own review in 2024, the SRA identified several remedial actions, many of which align with those recommended in the independent review. The agency has prioritised the protection of the public and is cooperating with entities like the SSB Victims Group and Citizens Advice to explore redress options for affected consumers.

Consumers seeking redress can pursue three primary routes: filing a claim for solicitor negligence through SSB’s insurance, initiating a complaint regarding poor service with the Legal Ombudsman, or taking up the matter with the Financial Ombudsman scheme. Additionally, affected individuals may contact the cavity wall insulation company or insurance firm responsible for their legal costs, some of which may be willing to negotiate.

The challenges highlighted by the SSB case prompted the SRA to broaden its scrutiny of practices within the claims marketplace. The SRA has since embarked on a significant initiative aimed at identifying and addressing broader issues within the high-volume consumer claims (HVCC) sector. This area is often characterised by numerous consumers filing claims against a single organisation or for a similar issue, including housing disrepair and data breaches.

A thematic review by the SRA revealed that many law firms have been neglecting their duty to protect clients’ interests while managing these claims. Currently, the SRA is investigating over 70 law firms related to this issue and has already closed five. In light of the widespread concerns, the SRA has unprecedentedly contacted more than 700 law firms, requiring them to complete a mandatory compliance declaration.

In addition, a recent SRA discussion paper outlined five significant challenges within the sector and sought feedback from various stakeholders. This engagement aims to inform the SRA's future actions to evolve its regulatory approach and enhance the safety of the claims market for consumers.