The Department of Business and Trade has launched a Call for Evidence on the opt-out collective actions regime.
The rise in predatory litigation is no longer just a legal issue. It has become a growing business and investment risk. According to a 2024 report from the European Centre for International Political Economy (ECIPE), if left unchecked, the economic cost of the UK’s current regime could reach as much as £18 billion.
At the heart of this issue is the role of litigation funders. The Civil Justice Council has proposed a straightforward solution: statutory regulation of litigation funders. This would introduce three key safeguards:
- Transparency – so all parties understand who is funding the claim and on what terms
- Financial safeguards – to ensure funders can meet their obligations
- Basic protections for claimants – so those seeking justice are not left worse off
This proposal would not weaken access to justice. On the contrary, it would strengthen trust in the system by ensuring that claimants are properly protected and reducing opportunities for abuse.
This Call for Evidence is a real opportunity to restore balance to the UK’s legal landscape. Regulatory reform can protect the right to redress and maintain the UK’s attractiveness as a place to do business. But for change to happen, the business community must speak up.
If you represent a business, trade body, legal professional, or investor, your insights and experiences can help shape a fairer, more effective regime.
Read the consultation and submit your response here: https://www.gov.uk/government/calls-for-evidence/opt-out-collective-actions-regime-review-call-for-evidence/opt-out-collective-actions-regime-review-call-for-evidence
Alternatively, get in touch with Fair Civil Justice to discuss how to get involved.
