Spotlight on firms bringing mass consumer claims: a review of regulatory and judicial trends

Claims Management Companies (“CMCs”) and claimant law firms handling high-volume consumer claims are facing increased regulatory, legal, and commercial challenges.

This article summarises recent developments involving the Financial Conduct Authority (“FCA”), the Solicitors Regulation Authority (“SRA”), the Financial Ombudsman Service (“FOS”) and the courts that will impact how mass consumer claims are handled.

Whilst the most recent regulatory developments below have been prompted by conduct in the context of motor finance commission claims, many other developments have arisen in the context of other types of claims, and the tightening of rules will apply to all types of mass consumer claims going forward.