A legal battle is underway to try to recover millions of pounds for accident victims who have been short-changed by claims management companies that deducted huge sums of compensation awards. Claims Direct says it has already taken up the cudgels on behalf of clients who have lost out. But John Barstow, Head of the Personal Injury Division of Tranters Solicitors, says he has been contacted by around 150 victims – 80 percent of them former clients of Claims Direct.

“Sadly, my experience is that people who use claims management companies inevitably find themselves being ripped off and end up with just a fraction of their entitlement,” he said.

One of his clients was left with just £79 from an award of £1,500, and another lost £2,700 from a £7,000 award, which has since been recovered. Many people, he says, were pressured into signing legal insurance policies costing £1,300 on the basis that the money would be refunded, but it wasn't.

Mr Barstow is now collating evidence from other dissatisfied customers.
“In my opinion, such deductions are unlawful and enforceable. The more people who join a class action, the stronger the case becomes. The so-called claims managers of some companies are usually paid on a commission basis for the number of clients they sign up. They are not practising solicitors.”

“The client is required to sign a consumer Credit Act agreement, taking out a loan. This is unnecessary, because solicitors will provide a double guarantee, which means if you lose there are no costs to pay, and if you win, your damages are recovers.”


Manchester Evening News /Metro 30.08.02