Accident specialists are sued over rip-off claims. Accident victims across the North are joining forces to sue compensation firms they claim ripped them off.
The plans for a “class action” lawsuit came days after the news that personal-injury specialists Claims Direct has gone into receivership. The multi-million-pound legal battle was launched after a client at the firm, Neil Howard-Pichard successfully sued them. He received just £3.00 from a £1500 payout.
Dad of two Neil, 51, hurt his knee and shoulder after tripping on a kerb during a trip to Penrith, Cumbria.
A judge ruled that Claims Direct has “misrepresented” its product and ordered the firm to cough up £1300.
Two years ago the Sunday Sun revealed the unscrupulous practices of a rep from another compensation firm The Accident Group. He encouraged us to bend the truth to increase our chances of a big compensation payout.
CONCERNED
At the time we spoke to the company's marketing director, Barry Neild.
He said he was extremely concerned to hear our allegations, but maintained that his company has strict vetting procedures.
Neil's victory in the small claims court is expected to open floodgates for cases against other “no win, no fee” firms.
The law firm Tranters, based in Manchester is planning the “class action”.
It has been inundated with calls from accident victims across the North.
Many of them claim they have received only fraction of their original compensation.
In some cases it was less than half the award, and one woman claims she is yet to receive a penny of her payout. Vicky Rispin, of Tranters, said, “These people should not have had any deductions of their award.
“In many cases the customer signs a credit agreement with the Claims Company to take out a loan to pay for insurance, so if they lose their case they won't have to pay the costs.
“Some of the deductions from people's awards come from the interest on the loan and some come from the insurance. We'll deal with the people case-to-case basis and would encourage people who went to Claims Direct to contact us”.
Claims Direct last week urged the High Court to allow them to go into administration after the warning that it could become insolvent within weeks. In a statement, the company blamed insurance companies for its troubles.
It said insurers have gone back on promises to refund the cost of legal premiums, for which some of its customers had taken out loans.
Ronnie Henderson, chief executive of Claims Direct, defended the decision to put the firm in to receivership.
DAMAGING
He said: “It became clear that the continuance of the petition for an administration order would lead to a prolong legal wrangle, which I believe would be damaging to all concerned.
“I am of course extremely disappointed that we have been placed in this position but I have been assured that the administrative receiver will work closely with the management to ensure the most satisfactory outcome for all concerned”.
CASE STUDY 1:
Laura, of Houghton-le-spring, Tyne and wear, injured her back and wrist after slipping on an icy driveway outside her workplace in1999. |
| She made a claim for compensation through Claims Direct and signed a loan agreement for £1350. |
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Laura was told the load would cover the cost if she lost her case. |
| She won her case and was awarded £1700…but received a cheque for £359.” |
| After she queried about the award, she had it upgraded to £3500.” |
| Laura said, “ when I got the cheque for £59 I nearly collapsed.” |
| “The remainder had been used to pay off the insurance policy, which I had been told I would not be paying for.” |
| “This case left me out of pocket, because part of the £1700 was for special damages to reimburse me for things like damaged clothing.” |
| “All I wanted was the money that I was awarded to take my children on holiday.” |
CASE STUDY 2:
Brenda, from Newcastle, broke her hip in 2000. She made a claim for compensation Claims Direct and received £1350 out of £4250.
CASE STUDY 3:
David, from Darlington, was injured in a road traffic accident in 2000. He claimed through the National Accident Helpline and received £3500 out of a £6000 award.
CASE STUDY 4:
Brian, from Houghton-le-spring, Tyne and wear, was hurt in a road traffic accident. He claimed through The Accident Group and received £1200 out of a £2800 award.
CASE STUDY 5:
Bob, of County Durham, was hurt in a work accident in 2001. He used Claims Direct and received £900 out of a £2000 award.
CASE STUDY 6:
Pauline Jacobs, from Teeside, was injured when she stepped in a pothole while crossing the road on a day trip to Blackpool in My 2001. |
| She later discovered she had broken one bone in the side of her foot and fractured another. She was in a plaster cast for 5 weeks. |
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Pauline took her claim of compensation to Claims Direct. She turned down an initial offer of £1700, but was then offered a lesser amount. |
| She eventually accepted the award in March, but has still not received any money from Claims Direct. |
| Pauline said, “It is over two years since my accident and I have not heard anything for months. |
| “I have been told my money is still sat in a bank account, but I have not received a penny. |
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“My worst fear is that I could end up owing them money”. |
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