Freeclaim Solicitors News
Rip-off claims firms to face a £60m claim
Tue 1st Aug 06 - 10:58
Accident victims ripped off by compensation firms like Claims Direct plan a £60MILLION mass lawsuit. The legal battle was revealed yesterday after a judge ruled in favour of a Claims Direct customer who ended up with a paltry £3.30.Neil Howard-Pichard, earlier awarded £1500 for tripping on a kerb, sued the "no win, no fee" outfit.
His small claims court victory-, which opened floodgates for thousands of others to sue - came after the Sun named and shamed them for milking clients.
Last night the personal injury lawyer leading the group lawsuit said his firm has already been planning its "class action". He urged more victims to get in touch. John Barstow of Manchester based Freeclaim Solicitors (formerly Tranters Freeclaim Solicitors) said "One of my clients ended up with a meagre £79, from an award of £1500. Another lost £2700 from a £7000 award - which we have successfully recovered.
"In my opinion, such deductions are unlawful and unenforceable".
He said clients charged unexpected costs have lost more than £60million. Mr Barstow said, "The more people who join the class action, the stronger the case becomes."
CHEATED
The Sun's campaign highlighted the plight of Claims Direct victims led to the firm bosses quitting last summer - and a revamp of the way claims are handled. But thousands of people cheated under the old regime are still trying to get cash they are entitled to. They claim they were pressured into signing legal insurance policies costing £1350 - with false promises the premium would be refunded. That was what happened to retired teacher Neil, 51. The dad of two from Poulton, Lancs, rang Claims Direct after seeing the firms TV ads, but got only a paltry payout. A Blackpool county court judge said Claims Direct had "misrepresented" its product and ordered the firm to pay Neil £1300.
The Sun August 2002