A former claimant with SSB Law has described the moment he received a £38,000 legal bill through the post demanding payment within two weeks.

The Yorkshire-based claimant, who asked not to be named, had signed up to a cavity wall insulation claim on a no-win, no-fee basis after a claims management company knocked at his door. He has letters from the time which assured him that the claim was covered by after-the-event insurance.

Sheffield-based SSB advised him the claim was discontinued in 2022 and he gave it no more thought until a letter from a defendant firm last Friday demanded wasted costs on behalf of its insulation installer client. The letter said the matter was being pursued through the county court and that bailiffs may be called to recover the debt.

The father-of-four told the Gaztte he is living in constant fear that he might lose his home. He claims that the defendant firm has not responded to his calls this week.

‘I wake up every morning wondering who is going to be knocking on my door,’ he said. ‘I didn’t know what to do when the letter came. It was totally out of the blue and my head was all over the place.’

He added: ‘Numerous times I was told [by SSB] I would not have to pay a penny and they said we were covered by insurance. I have got that in writing.’

SSB Law went into administration last month with debts estimated at £48 million.

Former clients, mostly based in the north west, north east and Wales, have come forward in the past week to say they have received demands for costs payments on claims long since discontinued. It is understood that discussions are ongoing between administrators and after-the-event insurers about whether clients were covered when they took out claims.

Solicitor Erich Kurtz, from national firm Hugh James, said as many as 1,400 people may have been issued with demands to pay legal bills.

Raising the issue in parliament on Thursday, Burnley MP Antony Higginbotham said bills for tens of thousands of pounds are landing on the doors of people across the north of England.

‘When no win, no fee lawyers got in touch, residents took up the offer,’ he said. ‘That proceeded through the courts. They were told that they would not have to pay, but a law firm based in Sheffield, SSB Law, has now collapsed. There was no insurance policy for residents, and they have now been hit with legal costs because of its collapse.’

The Solicitors Regulation Authority has confirmed it is looking into complaints about SSB Law. A spokesperson said: ‘We are aware of the concerns of many householders and are investigating these issues. We understand a number have already contacted both the legal ombudsman and financial services ombudsman to complain about the standard of service they have received.’