Third-party litigation funding: protecting consumers

No. The consultation does not propose changing any cooling-off period, which would continue to apply as at present. Requirements for cooling off periods are outside of our remit.

Requirements for cooling off periods are outside of our remit.

Find out more about our consultation proposals.

We recognise that litigation funding can play an important role in enabling consumers to pursue claims that might otherwise be out of reach. However, it remains the solicitor's responsibility to assess whether a proposed funding arrangement is consistent with their regulatory duties, including whether it would be in their client's best interests, and to make sure the client has the information they need to make an informed decision.

Subject to the detailed criteria set out in the consultation, the proposals apply for any type of third-party litigation funding, including where litigation funding is insurance-backed.

That's certainly not our intention. We recognise that high-volume consumer claims can provide an important route to access to justice and help consumers enforce their rights.

We also recognise that litigation funding can play an important role in enabling consumers to pursue claims that might otherwise be out of reach. Our proposals are designed to deliver the twin objectives of maintaining access to justice, and ensuring that when third party litigation funding is used, it is used responsibly with safeguards in place to protect consumers.