Claims Direct to make 'ethical' comeback

Claims Direct, the controversial personal injury company which collapsed in 2002 amid a barrage of bad publicity, is to be reopened by its new owners.

Claims Direct, the controversial personal injury company which collapsed in 2002 amid a barrage of bad publicity, is to be reopened by its new owners.

The law firm Russell Jones & Walker, which paid more than £1m for the Claims Direct when it went into liquidation, said it would set up a new, "ethical" business under the brand.

Claims Direct was once Britain's largest personal injury company, which floated on the stock market in 2000 with great fanfare. But it was nicknamed "Shames Direct" when it emerged that its business model was fundamentally flawed because thousands of customers saw their compensation almost wiped out by massive insurance premiums they had to pay out of their settlements. Russell Jones & Walker said it had carried out extensive research into how Claims Direct could be resurrected while adhering to industry standards of best practice. The firm will unveil the details of the new business model in September.

It said that despite Claims Direct's troubled past, its brand was well known, with the business still receiving up to 50 phone calls a day from interested customers.