People on lower incomes are less likely than their richer neighbours to sign up for their share of the proceeds of class actions, research suggests in a finding likely to be seized upon by critics of the competition law collective action regime. A study by Thorndon Partners, a litigation communications business, found 'a significant engagement gap among lower-income households' regardless of the sums on offer. 

An iterative bidding experiment showed that higher income respondents were more likely to come forward. The report notes that people with household incomes of less £15,000 are much less likely to have the evidence needed to claim than households on more than £40,000. 

Meanwhile class action payouts are increasingly colliding with public wariness of online offers, the research found. More than one in three consumers stated that the main barrier to claiming compensation was that payout offers 'feel like a scam'. They were more likely to trust offers from a gov.uk website than from a standalone claim site. 

Martin Lewis, founder of Money Saving Expert, emerged as the most trusted messenger for compensation claims, with 46% saying they would trust him over anyone else, including law firms and class representatives.

Tara Flores, co-author of the report, said: 'Collective actions increasingly operate in an environment where consumers are trained to be suspicious of unsolicited communications, unfamiliar websites and requests for personal information. The challenge is no longer simply making people aware of compensation. It is convincing them that the process is legitimate.'

Some 60 class actions with a combined value of over £160 billion are pending the Competition Appeal Tribunal’s opt-out collective action regime. This week consumer activist Mark McLaren announced plans for a £4.5bn claim against major housebuilders over alleged collusion.

The Department of Business and Trade is currently reviewing how consumers are benefitting from the regime, with a consultation expected shortly.