Credit hire companies (again!)

Buddug_2

I know this subject has come up time and time again, but I'd really like to hear from anyone who has been in my position, or who can offer me any practical advice.

Following an accident last year, I was provided with a car on a credit hire agreement basis. I was referred to the company by my broker. Neither they or the company explained the terms under which I was being offered the car. I assumed it was a courtesy car, which was included in my policy. I only found out it was a hire car under a credit hire agreement when I took delivery of the car. However, I was not at fault, so was not concerned.

To cut a very long story short, the other driver was insured with the same insurer as me. The insurance company told me the best they could offer me was a 50/50 liability split. Their other office, who were handling the claim for the other driver refused, and the claim was settled against me.

I am now left liable to pay for the hire car charges, if the credit hire company chooses to pass the costs on to me. I have complained about my insurer to the FOS, but this is a very lengthy process.

In the meantime, if I do get a bill, I wondered if anyone else in this situation was able to get the hire costs waived or reduced? If anyone can offer any practical advice, I'd appreciate it.

lisyloo

Neither they or the company explained the terms under which I was being offered the car

Did they provide you with any paperwork that you had to sign?
If they didn't then they might find it hard to enforce.
If they did then you are meant to read and uinderstand it and that's you (written) explanation.

So can you confirm if you signed anything?

Buddug_2

Yes, when they delivered the car they did show me the terms and conditions which I was agreeing too (although neither they or my broker had explained these when they spoke to me on the phone)

Unfortunately at that time there were certain facts I was unaware of in relation to the subsequent insurance claim, so at the time of the hire I had no reason to believe the claim would be settled against me, because the other driver had caused the accident. I also (mistakenly) believed that my policy would cover me for the car hire in any event, as my policy included a free courtesy car. I was never offered any other option by my broker, so (again mistakenly) assumed I was covered even if the claim did go against me.

I understand what I've signed. I also know that these companies offer a referral fee to insurers and brokers for putting clients their way, so think that my broker should have explained what they were offering me. I also now know the credit hire company offers insurance to clients that covers them against having to pay the costs if the company can't claim from the third party's insurers. I was never offered this option. I think that may give me some leverage, but am really interested to hear the experiences of anyone else who's been in the same boat, and what the outcome was.

cogito

You should ask your broker to explain himself and make it clear that if you're not happy with his explanation, you're more than happy to put in a complaint.

If you were entitled to a courtesy car under your policy, you should not have been talked into taking out a loan (which is what a credit hire agreement is) even if you were 100% certain that you could establish that the third party was wholly at fault. Things are not always as cut and dried as they might seem.

cogito

Incidentally, your insurance company should also be asked to explain why they agreed a settlement which could have prejudiced your position without securing your agreement. If you have not actually agreed to the settlement, there is nothing to prevent you from pursuing the claim against the third party insurers (regardless of the fact that they are your insurers too) and you should insist that the credit hire company (or their legal expenses insurers) continue to pursue the claim on your behalf before you will consider settling their bill.

Buddug_2

Many thanks for the advice, it's very helpful. I'll await the outcome of my complaint to the FOS, and then take it from there.

lisyloo

I'll await the outcome of my complaint to the FOS, and then take it from there.

Have you already been through the full complaints procedure with your insurer/broker (whichevery you have the complaint with).

The FOS will not deal with your compalint until you have exhausted this.
They will only write to you and tell you that.