The scandal affected several households in Bradford who faced huge legal bills after 'no win no fee' legal firm, SSB Law, collapsed in late 2023.
The victims were pursuing compensation after claiming inappropriate cavity wall insulation was installed at their homes using the Government's green homes grants.
The claimants alleged that the work caused long-lasting issues with damp and mould at thousands of homes.
But homeowners faced an even bigger shock when they received a bill for court fees not paid when SSB Law collapsed.
A meeting was held in London in May 2024(Image: T&A)
Figures show more than 10,000 people in the UK have been affected - although the true number of victims is expected to be a lot higher, Bradford East MP Imran Hussain previously suggested.
A high number of the victims were already vulnerable and living with lung conditions such as COPD and asthma, mental health conditions, learning disabilities, or did not speak English as their first language.
The law firm went into administration in January 2024.
In the latest update on the ongoing saga, the Legal Services Board (LSB) announced it has taken enforcement action against the SRA.
It came after an independent review found that it failed to protect consumers affected by the collapse of the Sheffield-based law firm.
The Board commissioned solicitors Carson McDowell to assess reports made about SSB from January 2019 to March 2024 and how the SRA responded.
The report found that the SRA received more than 100 reports about SSB Law's conduct and financial management between 2019 and 2024, but failed to act effectively or efficiently - allowing widespread consumer harm to continue.
The SRA said: "We have apologised and accepted all the recommendations of an independent review into failures in our handling of SSB Law Group Ltd (SSB)."
Yusef, of Blackburn, pictured, is facing a £30,000 charge on his house due to the legal issues(Image: T&A)
Chair of the SRA, Anna Bradley, said: "We are sorry that we did not act more quickly in relation to SSB, and that issues in our handling contributed to the harm and distress suffered by the many vulnerable consumers affected.
"We fully accept the recommendations of this review and are committed to doing all we can to learn from this event and to implement its recommendations.
"The case showed that we need to continue changing the way we spot and assess risk and use data so that we can proactively identify new and emerging risks and threats and act on them before consumers suffer.
"We were keen to get on with addressing these issues ahead of the publication of this review, so we have already made significant changes to the way we work since 2024. We will now build on this, addressing any additional areas for improvement outlined."
The SRA said it has taken action since this case came to light and has been working with the SSB Victims Group, Citizens Advice, the insurance industry and others.
It said the three main routes for consumers seeking redress include making a claim for solicitor negligence through SSB's insurance, a claim for poor service from their solicitor through the Legal Ombudsman, and a claim relating to insurance through the Financial Ombudsman scheme.
It also said there is an option for consumers is to contact the cavity wall insulation company or insurance firm and pursue them for legal costs.
Debra Sofia Magdalene, spokesperson for the SSB Law Victims Support Group, said: "Thousands of families have suffered because regulators acted too slowly. We need genuine reform, faster intervention, and independent oversight to make sure promises of change are kept."
The SSB Law Victims Support Group - whose testimony helped shape the LSB's report - is calling for a national redress plan, independent monitoring of the SRA's reforms, and a cross-agency review into how repeated regulatory and financial failures were allowed to harm consumers on such a scale.
Almost a year ago, the T&A spoke with Nawab Khan, 61, of Great Horton.
As part of a meeting held by Bradford West MP Naz Shah, he claimed to have been told he owes around £7,000 and kept it from his family initially.
He added: "An SSB engineer came and said you can claim, they took photos."
Mr Khan claims SSB told him that when a court hearing came round, "you will come as well".
He "was never invited" and was told the claim did not succeed as there was "not enough evidence".
The 61-year-old was still living with damp in the house.
At the time, Mr Khan said: "If there's not enough evidence why did they pursue?"