Claims management company ripping me off?

SAPFO

I’m a chauffeur, so our vehicles are licensed as private hire. In the event of an accident, my vehicle, in particular is very hard to source. So when in a recent none fault accident, I went with a claims local claims management company that had the same vehicle available so that I would be able to honour work.

The deal was, they take 10% from whatever I get back. I weighed it up, and the 10% was less than what I would lose in earnings.

But then..


The engineer value of the car at £13.5k

Salvage value is £1350

so the letter from the solicitors related to the Claims management company said I should expect to £12,100 minus to 10%

As I understand it, if I’m paying for the salvage, I get my car back, because it is repairable. The Claims management guy seems to think that he keeps it.


I am meeting him in an hour, as he didn’t want to talk on the phone. 


Clearly, I’ve made a massive mistake and will learn a lesson here, but this guy is fishy.

Can anybody enlighten me on the actual law before I meet him?

the_lunatic_is_in_my_head

SAPFO said:

The deal was, they take 10% from whatever I get back. I weighed it up, and the 10% was less than what I would lose in earnings.

Hello OP

As this isn't a consumer issue the general advice here on consumer rights won't help and generally there's little protection for B2B contract. 

First time I read this I thought you meant they would loan you the vehicle and take 10% of the hire prices paid by customers as payment but from the rest of the post I assume that's not the case? What exactly does the contract say they will take 10% of? 

SAPFO

Whatever fee I’m paid by the 3rd party. 

the_lunatic_is_in_my_head

SAPFO said:

Whatever fee I’m paid by the 3rd party. 

Thanks, so what fee are you getting from the third party?

Are you getting the damage vehicle back and some money or just some money? 

SAPFO

Well the law firm connected to the claims company said “the amount they expected to recover from the third-party insurer is £12,150” which appears to be £13,500-10% salvage value.


Then on top of that 12,000 £150 is another -10% to the claims management company I agreed when signing the forms with the Claims management, so £10,900.

I’ve just spoken to the law firm and they said the scrap vehicle is mine.

claims management guy is trying to keep it.

the_lunatic_is_in_my_head

SAPFO said:

Well the law firm connected to the claims company said “the amount they expected to recover from the third-party insurer is £12,150” which appears to be £13,500-10% salvage value.


Then on top of that 12,000 £150 is another -10% to the claims management company I agreed when signing the forms with the Claims management, so £10,900.

I’ve just spoken to the law firm and they said the scrap vehicle is mine.

claims management guy is trying to keep it.

I see, so shouldn't they be getting 10% of the salvage value rather than the car? Do the terms say anything about what happens in this situation? 

Sorry if it's not clear, the replacement vehicle you now have, I assume that is on loan rather than you getting to keep it?

Just to add, you might be better off on the motoring board so I've asked for this to be moved there  

Nearlyold

Who is paying for the loan car the Claims Management Company provided? 

SAPFO

The 3rd party is paying for the car which the claims management company owns. Probably at a rate of £250/£300 per day. 

The Claims guy said to me on the phone last night, he didn’t like speaking on the phone, and we should talk in person, which immediately rang alarm bells. He also said I could continue to use his vehicle to work until I purchase and plate one myself. 

If I take my vehicle back, I lose the work car and it will be weeks before I’m back! Some sort of a no-win situation here. My dad said if he is offering to lend you the car for free and he keep the salvage, you need that in writing. Would that be binding if we put aside 3/4 weeks on it?

Apologies for posting in the wrong board.

DullGreyGuy

You need to read the agreement you signed. On the surface of it you have title of the vehicle, the third party insurer is reimbursing you the pre-accident value less the current value (the salvage) and so the title remains yours. 

Your contract with the hire company would need to say you surrender the salvage to them as a condition of them dealing with it but that certainly wouldnt be a normal agreement. Now clearly you are free to sell the salvage to whoever you want which may well be them and the TPI's valuation may be a reasonable price to base that on but in the absence of any clauses its your and you can charge whatever you want. 

SAPFO

Shouldn’t they be working in the best financial interests of the of the client, me? I’m sure they are regulated by the FCA as of this year..

born_again

Maybe I missing a bit here. But claim management companies do not own cars they supply. They supply them via hire co's.
So is this really a proper claims management co?
Who are they?

Why did you not just go via the business insurance policy.

I’m a chauffeur, so our vehicles are licensed as private hire. In the event of an accident, my vehicle, 

So is this a car you own, or is it owned by the company & you just drive it?