Mis-sold motor finance pioneer reports £10m loss as income slumps

One of the claims firms leading the motor finance case through the Supreme Court has reported an annual pre-tax loss of over £10m.

Newly published accounts for Consumer Rights Solicitors Ltd, covering the year to 31 August 2024, show the firm’s turnover was £450,000 – down from almost £5m in the previous year. The pre-tax deficit climbed from £1.2m in 2023 to £10.3m, as the company invested in building up thousands of claims.

The company also posted net liabilities of £11.3m, as longer-term debts (owed after one year) climbed from £16.4m to £29m. Cash reserves declined from £6.2m to £1.45m.

Consumers Rights Solicitors, based in Manchester, was incorporated in 2017. The firm specialises in financial mis-selling and unfair commission claims, largely working on a no win, no fee basis.

The trading figures, which were posted late, long pre-date the August 2025 Supreme Court ruling in Hopcraft, which the company acknowledges in its financial report was 'not as good as expected for the outcome of our claims'. The report adds: 'The result was not what we wanted but we are able to continue with the claims on our books.'

These motor finance commission cases are currently stayed or proceeding slowly, either awaiting the start of the Financial Conduct Authority’s redress scheme or being submitted as grouped so-called omnibus claims, with a test case for this being heard this April.

An audit report presented by Milos Xavier of Xavier Accountants and filed last month draws attention to the net loss, current liabilities and outstanding loans.

The report states: ‘The events or conditions… indicate that a material uncertainty exists which may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.’

Later in the company’s financial report, CRS director and principal Kavon Hussain says the company will continue to operate for the foreseeable future but ‘is aware of certain material uncertainties which may cast doubt on the company’s ability to continue as a going concern’.

Hussain states in his director’s review of the business that the firm experienced growth in both the number of incoming claims and the value of average settlements. Following the Supreme Court judgment last summer, the company vowed to remain focused on controlling costs, ensuring disbursements on client claims are undertaken only when necessary.

The strategy is to remain operating within the consumer litigation sector for the medium- to long-term, but in the shorter0term CRS is looking to bring in more business with a ‘volume introducer’, moving the focus away from exclusively serving individual consumers.

The report says the company continues to have the support of its main funder, litigation funder Katch Fund Solutions, and has started to broaden its case portfolio into areas with shorter settlement times and lower funding needs. This is expected to reduce the reliance on any single type of case and will strengthen the company’s cash flow position. As of 31 December 2025, the company’s work in progress stood in excess of £60m, with the company presently undertaking a revaluation of its claims book.

In a statement to the Gazette, Hussain said: ‘In any years-long battle to secure and protect consumer justice against the interests of predatory lenders, funding is provided with long-term horizons. Our efforts fought two lenders all the way to the Supreme Court and caused every lender to fully disclose the fact and amount of secret commission paid out to intermediaries.’