How to Choose a Flight Compensation Company Safely: Red Flags to Watch
Thinking of using a flight compensation company? The red flags to watch for, the questions to ask, and why who receives the airline's payment matters most.
You can always claim flight compensation directly from the airline for free. Plenty of people still choose a claims company because airlines can be slow, reject valid claims, or simply ignore emails. If you do use one, it's worth spending five minutes checking it first.
Most companies in this industry are legitimate. But some passengers have found that a company collected their compensation from the airline and then paid them late, or not at all. This guide explains what to look for so you can choose with confidence.
This is general information, not legal advice.
The most important question: who does the airline pay?
There are two basic models in the industry:
- The airline pays the company, which takes its fee and then sends the rest to you
- The airline pays you directly, and the company invoices you for its fee afterwards
The first model isn't wrong in itself, and many companies run it honestly. But it means your money sits in someone else's bank account for a period of time, and you're relying on that company to pass it on. If it's disorganised, struggling financially or dishonest, that's where things go wrong. If they do, you may end up having to take them to court to recover it.
With the second model, there's no point at which the company holds your compensation, so that risk largely disappears.
Red flags to watch for
1. Money has to go through the company first, with no alternative
If the company insists the airline must pay them, ask why, and ask how quickly they pass payments on. A clear, short timescale in writing is a good sign. Vague answers aren't.
2. No clear fee
You should know exactly what you'll pay before you sign. Watch for:
- A percentage with "plus VAT" hidden in small print
- Extra "admin", "legal" or "escalation" fees that only appear later
- Fees charged even when the claim fails
- Cancellation charges if you change your mind or the airline pays you directly
Ask for a worked example: "If the airline pays £350, how much do I receive?"
3. Vague or one-sided contracts
Read the terms before signing. Be cautious if they don't say:
- How long the company has to pay you once the airline pays
- What happens if the company stops trading
- How you can cancel, and what it costs
- Who the company is: full legal name, registered address and company number
4. You can't easily identify the business
A legitimate UK company should be easy to find on Companies House, the free government register. Check its status is active and that its accounts aren't overdue. If you can't find the company, or the name on the website doesn't match anything on the register, think twice.
5. Pressure and promises
No one can guarantee you'll win, or say how quickly an airline will pay. Be wary of guaranteed results, pressure to sign immediately, or requests for upfront payments on a "no win, no fee" claim.
6. Poor communication
If it's hard to reach anyone before you've signed up, it rarely improves after. Look for a real email address, a clear way to check progress and a complaints process.
Questions to ask before you sign
- Will the airline pay me directly, or will it pay you?
- If it pays you, how many days until you pay me, and is that in writing?
- What is the total fee, including VAT, in pounds on a typical claim?
- Are there any other charges, in any situation?
- What happens if I cancel, or the airline pays me directly anyway?
- What's your full company name and registration number?
If something has already gone wrong
If you used a company and haven't been paid, start by confirming whether the airline has paid out. Our guide on how to check whether your compensation has already been paid explains how. Then follow our step-by-step guide on what to do if a claims company hasn't paid you.
How Klaimly works
We built Klaimly around the second model because we think it's the safest one for passengers:
- The airline pays you directly. Your compensation goes straight into your own bank account. Klaimly never receives, holds or has access to it.
- A flat 5% fee. No VAT added on top, no admin fees and no minimum fee.
- No win, no fee. If the claim isn't successful, you pay nothing.
- You pay us last. Once you've confirmed you've received your money, we send a simple invoice for 5%.
On a £350 payout, that's a fee of £17.50, and you keep £332.50.
Frequently asked questions
Do I need a claims company at all? No. You can claim from the airline yourself for free. A claims company is optional; it can save you time and chasing, especially if the airline rejects or ignores your claim.
Is it a bad sign if a company collects payment from the airline? Not automatically. Many companies do this and pay customers properly. It does mean you're relying on them to pass the money on, so check their payment timescales and reputation carefully.
How can I check a company is real? Search for its name on Companies House, check the registration number matches its website, and look for clear contact details and a complaints process.
What fee is reasonable? Fees vary widely across the industry. Whatever you're quoted, make sure you know the total in pounds, including any VAT and extra charges, before you sign.
Ready to claim?
If your flight was delayed by 3 hours or more, cancelled, or you were denied boarding, you could be owed up to £520 per passenger. Check your flight with Klaimly. It takes a couple of minutes, and your compensation goes straight to you.
