Blackburn MP Kate Hollern says the government must address the ‘unacceptable and desperate’ situation of victims affected by the collapse of a compensation scheme which left countless people owing thousands of pounds.

The Labour MP joined fellow MPs at parliament in a special meeting to hear from those affected when Sheffield firm, SSB Law collapsed, owing £48 million.

More than 1,400 clients of SSB Law were landed with huge legal bills from failed cases over a cavity wall insulation scheme.

People, some elderly and vulnerable, had been told the cases would be taken up on a 'no win no fee' basis.

The Lancashire Telegraph was one of the first to raise the issue when it reported on the plight of Yusuf Patel from Blackburn.

Later, dozens of people including Sharon Lord from Burnley spoke out over demands for money.

The case, with victims in several other places across the country, has since been taken up by a number of other news outlets.

Ms Hollern said: "It was an honour to attend the very moving event in Parliament this week and hear from victims about the human toll of the SSB Law crisis.

"It has undoubtedly caused considerable shock, anger, and distress to those affected.

“Even now, as the true scale of the problem is being uncovered, we still do not have the proper forms of policing or checks and balances in place to protect people from further exploitation.

“Non-existent safety nets have exposed a catalogue of failures on the part of the Government.

"We cannot let this issue go on any further and the voices of those affected must be amplified.

“I strongly suggest that Government ministers meet with victims of this crisis, as I have done, so that they can fully understand the urgency of the situation.

"It is incumbent on the Government to address this unacceptable and desperate situation that so many find themselves in, through no fault of their own.

“This national scandal cannot be underestimated, and the Government must be held accountable – it has a responsibility to support the victims and rectify its own shocking failures."

Insurers Royal and Sun Alliance had confirmed it is ‘seeking recovery of court awarded costs associated with failed actions brought by SSB Law’ but had paused any enforcement action.

The Solicitors Regulation Authority was said to be investigating.

Lancashire Telegraph: Blackburn MP Kate Hollern and MP Imran Hussain invited victims to share their concerns.

Bradford East Labour MP Imran Hussain (above) set out a list of priorities which he said would bring further clarity for victims.

This included: “Meeting with those affected like my constituent who had an £11k legal bill posted through her door days before Christmas.

“Ensure it is not our constituents footing the bill for companies’ negligence and charges are dropped.

“Investigate the conduct of CWI installation companies using government grants, legal firms pushing people into no-win no-fee cases, and action (or inaction) of regulatory bodies.

“Offer a full compensation scheme to residents living in damp, mouldy, and unfit homes, to extract insulation causing massive structural and health issues.

“And bake in legal protections and opportunities for redress for consumers as home retrofit schemes grow in the goal to reach net zero.”