Credit repair agreement even though the car has already been repaired? 10 October 2022 at 7:08PM in Insurance & life assurance 4 replies 179 views

dtmma

Back in April our neighbour's car was parked at the kerbside outside her house when it was hit by a driver reversing up the road, who stopped and supplied her details and was very apologetic. The damage to our neighbour's car wasn't serious, with some paint scratching and a small dent to the driver's door. Our neighbour contacted her insurance broker and insurers (Axa) and a claims handling company became involved (B D Elite). The third party's insurers were Esure. Our neighbour is 79, lives alone and has no experience of dealing with any car insurance claims. She was sitting in the driver's seat with the ignition off seat at the time the collision and while she was uninjured she was very upset. We live on the fringes of the Brecon Beacons National Park to a car is essential. The third party's insurers, as I understand it, accepted liability pretty much immediately.

To cut a very long story short, the claims handling company were utterly and horrendously useless, as were our neighbour's insurance brokers and it took my intervention and over two dozen phone calls before the car was finally repaired at the end of August! Our neighbour found the whole process very upsetting and stressful and was reduced to tears on a number of occasions. Our neighbour thought that when her car was repaired and returned that it was the end of the saga but on Saturday 08 October she received a letter from S & G Response, dated 05 October  - a company who up until now we hadn't heard of and were completely unaware had anything to do with it - telling her she had to sign a credit repair agreement.

"As you are aware we are acting on your behalf in regards to a road traffic collision you have been involved in.
"As we are dealing with the repairs to your vehicle on a credit repair basis we require the following agreement to be signed by yourself and return (SIC) to us before we can authorise the repairs on your behalf.
"On completion of the repairs the invoice along with the repair agreement will be submitted to the at fault insurance company and settlement of your claim will be requested."

They list fees for an engineer (£126.00), storage (£252.00) and towage (£500.00) in addition to the cost of the repairs (£2019.05), giving a total of £2897.05. The wording of the agreement suggests that our neighbour will be liable for the costs or any shortfall if she signs the contract and the third party's insurers refuse to pay them, and that she could be liable for the total cost if she doesn't sign. 

Seeing as her car was repaired and returned to her weeks ago, should she sign this contract?

Apologies for the long post and thanks for any advice anyone can give.

DullGreyGuy

Who do you think arranged the repairs? Where you on the phone to the insurer or the broker appointed accident management company? Was a replacement vehicle given during the repairs?


The wording, if you sit down in a dark room with a cold towel, is more likely more complex than saying she is liable for any shortfall... what it will normally say is along the lines of that she will be liable for whatever amount the TP is deemed liable for. This is a legal fudge to deal with a previous court ruling that said that because the non-fault person would never be liable for the costs under the old wording that the TP cannot be liable for it either... credit hire/repairers dont have the same rights of subrogation that an insurer does.

dtmma

I'm fully aware who arranged the repairs, having spent hours on the phone to them. So thanks for that.

Doesn't really answer my question though. 

DullGreyGuy

dtmma said:

I'm fully aware who arranged the repairs, having spent hours on the phone to them. So thanks for that.

Doesn't really answer my question though. 

Can't answer it until you answer who arranged the repairs... if their own insurers have dealt with it under their policy then absolutely shouldnt sign it. If it was dealt with by the accident management company on credit terms then it would be unfair not to sign it however you'd need to seek formal legal advice if you decided you wanted to not sign it on the basis of their administrative error.

Without reading the wording myself I can only say I suspect you are misunderstanding what liability it creates in the case of a partial recovery.

jimbo6977

dtmma said:

I'm fully aware who arranged the repairs, having spent hours on the phone to them. So thanks for that.

Doesn't really answer my question though. 

I think there is a misunderstanding here. DGG's question "Who do you think arranged the repairs?" was not meant in the sense of, "Who the !"£$ do you think arranged the !"£$%^& repairs you pleb?" but rather, "To the best of your knowledge, who arranged the repairs please?"