Direct aid for clients

Claims management company Claims Direct's decision to go into administrative receivership last week has put lawyers who used the controversy-dogged personal injury service under the microscope.

The receivers, Deloitte & Touche, put the company up for sale this week.

However, the priority has been to ensure that existing customers' cases continue unhindered.

Carol Jackson, head of personal injury with Manchester firm Pannone & Partners, said: 'We stopped taking instructions [from Claims Direct] earlier this year because we were generally unhappy with things.

We felt concerned as to the viability of their financial situation.'

Ms Jackson said it was possible there had been an exodus of law firms from Claims Direct, which had 300 practices on its panel.

Pannones would do all it can to assist former clients still waiting for compensation through Claims Direct, she said.

The Trades Union Congress (TUC) has teamed up with national firm Thompsons to advise Claims Direct clients.

TUC general secretary John Monks said the development 'shows once again the problems with the new breed of claims farm companies'.

A factsheet tells clients that their solicitors 'should be able to reassure you that you will not be out of pocket and that your claim will continue without delay'.

It gives clients ten questions to ask, mainly requiring yes or no answers, 'which any reputable lawyer genuinely interested in your case, rather than the money they stand to make from it, will be willing to give'.

Among the questions is: 'Was I incorrectly advised or misled to take out a Claims Direct policy?'

Jeremy Fleming