But they also have competition in the class action suit space but less so in the small claims case.

In some jurisdictions you have to show up to small claims yourself though which prevents some third party from just handling it. Makes sense since the idea behind small claims is to keep the legal costs low enough that you actually have a chance of recovering smaller sums without paying more then what you will get.

That's actually a great idea! Something like the companies that take care of getting refunds for flight tickets when the flight is delayed too long (in Germany you are legally entitled to a refund, but the process is long, so there are companies that do it for you and take a piece). They might have some common claims that they can add to a catalog. You could cut costs by re-using paperwork on these. As long as they could claim legal fees, which I'm not sure of.