A pensioner has been left without a penny despite a £1,500 payout over a fall in a supermarket.

Valerie Stevens was hoping for compensation but after more than a year of negotiations the payout only covered the cost of a loan she had agreed with Claims Direct to bring the case.

Mrs Stevens fell when the lights went out in a toilet at Sainsbury's in Clapham, south London.

She said: "It left me with a lump in my left leg and I was bruised black and blue. Thrombosis set in after the fall."

She complained to the store, which sent her £20 in vouchers and a bouquet.

But Mrs Stevens, 66, decided to take the case further and contacted Claims Direct.

The firm arranged solicitors, set up a bank account for her, and organised an insurance policy for Mrs Stevens to cover costs in case the claim failed.

The former staff nurse sent her £20 vouchers to the solicitors and paid bus fares to go for medical check-ups.

Eventually, 16 months after the fall, she was delighted to hear the case was settled in her favour and Sainsbury's had promised to pay £1,500 compensation.

Mrs Stevens, of Preston Road, Brighton, said: "I got very excited that at last it was over and went to draw out some money from the bank account they had set up for me - but the entire lot had already been taken out.

"I couldn't believe it. I phoned Claims Direct and they said it had been taken to cover the insurance premium.

"I knew it had arranged for an insurance premium and had signed for it but I never expected it to take up the whole cost of my claim.

"I have even lost out on the £20 vouchers."

Sainsbury's also paid the £2,800 costs of the case.

Julia Lake, press officer for Claims Direct, said: "When Mrs Stevens signed up with us she took out a loan for an insurance premium to cover the costs of taking her claim through the legal process.

"The cost of the premium is repaid through the loan, which in this case amounts to £1,312.50. The rest of the £1,500 is taken up with interest on the loan.

"The insurance premium covered her for £50,000-worth of court costs.

"If she had not taken out the insurance policy, she would be liable for the whole £2,800 of court costs."

Ms Lake said the cost of the insurance premium was included in the agreement Mrs Stevens signed.