SRA investigating the role of litigation funding in scandal leaving Burnley and Pendle homeowners in debt following SSB Law's collapse

The Solicitors Regulation Authority (SRA) is probing a law firm through which many Burnley and Pendle homeowners made compensation claims for failed cavity wall insulation (CWI) before it went bust. The residents now face thousands in legal bills despite being told by SSB Law that their case was on a no-win, no-fee basis.

What is litigation funding?

Taking a claim to court is expensive. You could borrow money from the bank to fund it - or from a third party instead. Some firms, acting as a third party, lend cash to solicitors to take a person's claim to court in exchange for a share of the winnings. They also charge interest on that loan.The lender should have no involvement or direct interest in the proceedings. If the case is won, the lender receives an agreed share of the winnings. If it is unsuccessful, they lose their money and the borrower does not owe anything.The SRA’s chief executive met with members of The SSB Law Victims Group and said third-party litigation funders have multiplied in the past 15 years.Paul Philip added: "We are looking into the role investors are playing in this area. Funding can help people get access to justice for genuine claims, but we want to make sure that it is not contributing to problems in this area.”

We have contacted SSB Law but had no response.

To sign our petition for justice for the victims, please visit https://www.change.org/CWIscandal