News release
SRA warning notice over 'no win, no fee' practices
28 January 2026
Amid concerns over how the market for high-volume consumer claims operates and the risks this can pose to the public, we have issued a formal warning on 'no win, no fee' arrangements to law firms and solicitors.
Focusing in particular on how these claims are marketed and the need for firms to provide clear information to clients on costs and risks, the warning notice is in response to evidence of widespread poor practice in the sector, which is putting the public at significant risk.
As of 31 December 2025, we had 83 open investigations relating to 72 firms working in the claims market, and had closed six others. Significant concerns over how firms operate in the sector also emerged from our thematic review into the market.
In particular our concerns relate to:
- A lack of transparency about fees clients will pay if their claim is successful, and costs they will be liable for if it's not
- Firms compromising client interests by prioritising their own commercial interests
- Firms not carrying due diligence to make sure third-party referrers meet our standards
- Firms failing to manage 'no win, no fee' financial safeguards appropriately.
The warning notice also states firms must be cautious when using the term 'no win, no fee' in marketing or advertising materials, and proactive steps must be taken to make sure clients fully understand how these claims work. Firms must also check clients have understood the information provided, as well as provide opportunities for clarification.
Sarah Rapson, SRA Chief Executive, said: 'We, and others, continue to be concerned about what we are seeing in the high-volume consumer claims market. This is a priority area for us and a topic stakeholders consistently raise with us. The expectations set out in this warning notice should therefore not be a surprise.
'Some firms are not fulfilling their obligations to always act in their clients' best interests and follow our rules and standards. We are using all the tools at our disposal to take action against these, highlighting known issues and promoting compliance in order to protect the public and help the sector to comply with the rules.'
Last year, we took the exceptional step of contacting firms active in the high-volume claims sector requiring them to complete a mandatory declaration confirming they understand and were following our rules. Information returned is currently being reviewed to potentially identify where firms might need support, or in certain cases where we might need to take action.
In September 2025, we called for views on our Discussion Paper which identified five of the main challenges with the way the sector is operating. We are now evaluating responses and insights, as well as views from ongoing consumer research, to inform future action we will take to support the creation of a better functioning claims market for consumers.