SSB Law Sheffield: Bosses could face 'unlimited' fines over 'no win no fee' cases regulator warns

Directors of a failed Sheffield law firm could be hit with ‘unlimited’ fines if investigators prove misconduct over ‘no win no fee’ cases.

The Solicitors Regulation Authority is looking into SSB Law after scores of clients were ordered to pay thousands when cases collapsed.

An SRA spokesperson said: "If our investigation leads us to conclude that solicitors at the firm have failed to uphold the rules laid out in our standards and regulations then absolutely, we can take action. That could be a sanction we issue ourselves, which is anything up to a fine of £25,000.

"Or if we feel the misconduct requires a more serious sanction, we will prosecute at the independent solicitors disciplinary tribunal, which has unlimited fining powers, and in cases involving dishonesty or a lack of integrity can strike solicitors from the roll."

SSB Law, based at Victoria Quays, specialised in ‘no win no fee’ compensation claims in areas including cavity wall insulation, medical negligence, personal injury and data breaches.

Earlier this month it collapsed into administration with the loss of 192 jobs. Administrators say they have sold 42,708 live cases to other law firms.

Client Amjad Ahmed says he was repeatedly told he would not have to pay whatever the outcome of his cavity wall insulation claim.

But an expert report found no damp at his Bradford home and the case was dropped - leaving him with an £11,880 bill.

M Ahmed believed SSB Law had organised ‘after the event’ insurance to protect against losing. But in April 2023, senior litigator Clare Jenkins wrote to say it did not apply ‘where there are no prospects’.

And she urged him to check whether he had ‘alternative legal expenses insurance’ or ‘union support’ to pay.

Another client, Yusuf Patel of Blackburn, received a demand for £27,495 and could lose his house after his claim for defective cavity wall insulation was dismissed. He too thought he was insured against losing. 

The Insurance Fraud Bureau says it is focusing on ‘organised claims farming’ especially fraudulent cavity wall insulation claims

Jon Radford, head of intelligence, investigations and data services at the IFB, said: "Claims farming is a common issue where unscrupulous companies will encourage otherwise innocent individuals to make false or exaggerated claims or to provide misleading information for what would otherwise be a genuine claim. Examples of how claims are farmed include unsolicited calls, emails and messages on social media."

He added: "Claims farming adds millions of pounds in costs for insurers and this is ultimately passed on to consumers' premiums."

Report evidence of claims farming to www.insurancefraudbureau.org/cheatline or 0800 422 0421