The FSA is investigating a complaint by the creditors of the defunct no-win, no-fee insurer Claims Direct against investment bank Investec Bank (UK) Ltd.

FSA enforcement, insurance and financial crime officer Bill Sillett will meet with representatives of the bank after a complaint was lodged by claims management company Judica Ltd, the action group's representative.

On 3 September, a writ was issued on behalf of a Claims Direct creditor, John Edward Lawrence, at Newport County Court, seeking damages of £41,309.60 from Investec Bank (UK) Ltd, and two ex-Claims Direct directors Paul Doona and Paul Rew.

The claim form said: "The claimant seeks payment of damages and interest pursuant to statute and costs for conspiracy to withhold material information and publish a false prospectus and/or alternatively, damages for negligent misrepresentation, misrepresentation pursuant to the Misrepresentation Act 1967 section 2(i); deceit, breach of contract, breach of statutory duty pursuant to section 150 of the Financial Services Act 1986 (and/or sections 79 to 80 of the Financial Services and Markets Act 2000) arising from representations which were false, misleading and/or contained material inaccuracies made by the second and third defendants which were intended to induce the claimant and others to purchase shares in Claims Direct plc."

Investec was unavailable for comment as Insurance Times went to press.