THE future of "no-win, no-fee" personal injury specialist Claims Direct has been thrown into doubt after it ran out of cash.

The company urged the High Court yesterday to allow it to fall into administration after warning it could become insolvent within weeks.

Chief executive Ronnie Henderson said he was hoping for a decision from the court within the next few days.

An administration order would buy Telford-based Claims Direct time to either restructure or seek a buyer.

It could also help preserve jobs among the 140 staff that would likely be lost if the company collapses.

Claims Direct has struggled to recover from controversy last year that saw it labelled Shames Direct by some newspapers.

Clients cried foul after seeing compensation payments wiped out by the cost of buying insurance policies to cover a potential defeat in the courts.

The group argues that the losing party's insurers should cover this cost under the Government's Access to Justice Act but have refused to do so.

Personal Injury lawyer Huw Ponting of Swindon-based solicitors Thring Townsend said: "Claims Direct, with its reputation for aggressive advertising and encouragement of the so-called compensation culture, has lead to public concerns about the legal profession in the field of personal injury litigation.

"By contrast the Law Society's personal injury accreditation scheme Accident Line, with its network of specialist local solicitors, demands certain standards and qualifications and is one of the most efficient and ultimately the most cost effective routes to claiming for personal injury."