Tricked by Credit Hire firm 2 months hire @ £30K!
EddySub19
Posts: 30 Forumite
Hi,
Really worried can't eat or sleep, struggling at work and family home environment abysmal with my little kids (5yrs and 8yrs) and wife very upset.
Basically I didn't realise what I signed up for by this dodgy Credit Hire Firm (CHF) who say I may be liable for a £30,000 car hire bill, for hiring a VW Passat for just 2 and a half months!!!!
About a year ago I was involved in an accident on a motorway where a lorry driver shunted me in the back after tailing me in my lane, on lane 1. I strongly felt it wasn't my fault.
Anyway at the time after damage to my car I desperately needed a replacement. I first went to my insurers who agreed I wasn't liable and forwarded me to their credit hire firm. Unfortunately this firm was being really awkward with paperwork, asking for a list of bank statements, log books and other documents that were registered at different addresses so refused me the car.
In desperation I spotted a leaflet at a local shop of an Accident Management Firm. I therefore spoke to them. Within 24 hrs they managed to recover my car and put me through to their CHF who gave me the keys to the Passat at their office and just asked to sign in 2 places. The whole process felt rushed and the employee at the CHF told me he was busy and I had to go in a hurry. Unfortunately I didn't get a copy of the paperwork or a chance to read it but noticed a price of hire which seemed a little high. I therefore asked him, !!!8220;am I liable if the case doesn't go my way?!!!8221; and he responded that !!!8220;No don't worry, as long as you're truthful you're indemnified and it's a free car, you won't have any problem and we won't come to you for money if they don't pay!!!8221;.
He then just took a copy of my driving licence and sent me off with my 'new hire car' !!!
I never thought more of it after that and took the car thinking I'll give it back in 5 days when my car is fixed.
However in reality, my car was hijacked by this Accident Management Firm in a holding area for 10 days and repairs hadn't even begun. Later it was sent to some dodgy mechanic who spent over 2 months to fix a simple tailgate, lights and a bumper!!!8230;which wasn't even done satisfactorily.
In the end I had the Passat for a colossal 87 days!!!!
Now 2 years on, solicitor suggests case could go 50/50 because a police officer at the scene of accident, after it occurred reckons I may have pressed my break which caused lorry to collide and both are partially to blame. As a non-eyewitness I think he was just trying to be neutral as the lorry driver was practically begging him to take his side that day.
Anyway Solicitor told me I would have to pay for half the costs. I spoke to my insurance and they said that they won't pay for the car hire because I didn't use it through them. I asked solicitor what the day rate for my car was, and he said it's an astronomical £340 a day!
I then spoke to CHF and those crooks are now telling me I AM LIABLE if TP doesn't pay
This means I'll have to re-mortgage my house, all for hiring a stupid car at an extortionate rate. I work at a bank so can't affords to have a CCJ. I'm really scared and confused, I can't believe how easily I was duped into signing up for something I didn't even need.
Can anyone help?
Really can't deal with the "doom and gloomers", just want some positive advice.
I read lots of court cases about similar scenarios. Seems a lot of people are getting trapped and extorted in this insurance related scam. This case below was interesting:
"linkedin.com/pulse/good-decision-court-dismiss-credit-hire-claim-grounds-michelle-scully/"
and these articles about it were interesting to read too.
"becket-chambers.co.uk/2018/02/19/voidable-void-enforceability-credit-hire-agreement"
(Sorry MSE won't let me post proper links if I'm new)
So how enforceable is this contract?
What will happen if I don't pay and take it to court?
I'm stunned and angry at myself as nowhere in my right mind would I have taken such an illogical extortionate car hire if I had known that potentially I could be facing such a huge bill.
I wish I had googled this issue that time, I would have given their stupid car back the very next day. I feel totally scammed and let down by Trading Standards etc who allow these opportunists to take advantage of people in vulnerable situations that hire cars in desperation not realising what they are signing up for. Now I know about these liars and should have got his assurances in writing.
Also what I find odd I had some money in my bank but they never asked me if I was impecunious. They then asked me to email copies of my bank statements a month later into the hire.
I'm wondering how these people tbh will take it to court if I don't pay and ask a judge with a straight face for this ridiculous sum of money from an ordinary man?
Please help
Really worried can't eat or sleep, struggling at work and family home environment abysmal with my little kids (5yrs and 8yrs) and wife very upset.
Basically I didn't realise what I signed up for by this dodgy Credit Hire Firm (CHF) who say I may be liable for a £30,000 car hire bill, for hiring a VW Passat for just 2 and a half months!!!!
About a year ago I was involved in an accident on a motorway where a lorry driver shunted me in the back after tailing me in my lane, on lane 1. I strongly felt it wasn't my fault.
Anyway at the time after damage to my car I desperately needed a replacement. I first went to my insurers who agreed I wasn't liable and forwarded me to their credit hire firm. Unfortunately this firm was being really awkward with paperwork, asking for a list of bank statements, log books and other documents that were registered at different addresses so refused me the car.
In desperation I spotted a leaflet at a local shop of an Accident Management Firm. I therefore spoke to them. Within 24 hrs they managed to recover my car and put me through to their CHF who gave me the keys to the Passat at their office and just asked to sign in 2 places. The whole process felt rushed and the employee at the CHF told me he was busy and I had to go in a hurry. Unfortunately I didn't get a copy of the paperwork or a chance to read it but noticed a price of hire which seemed a little high. I therefore asked him, !!!8220;am I liable if the case doesn't go my way?!!!8221; and he responded that !!!8220;No don't worry, as long as you're truthful you're indemnified and it's a free car, you won't have any problem and we won't come to you for money if they don't pay!!!8221;.
He then just took a copy of my driving licence and sent me off with my 'new hire car' !!!
I never thought more of it after that and took the car thinking I'll give it back in 5 days when my car is fixed.
However in reality, my car was hijacked by this Accident Management Firm in a holding area for 10 days and repairs hadn't even begun. Later it was sent to some dodgy mechanic who spent over 2 months to fix a simple tailgate, lights and a bumper!!!8230;which wasn't even done satisfactorily.
In the end I had the Passat for a colossal 87 days!!!!
Now 2 years on, solicitor suggests case could go 50/50 because a police officer at the scene of accident, after it occurred reckons I may have pressed my break which caused lorry to collide and both are partially to blame. As a non-eyewitness I think he was just trying to be neutral as the lorry driver was practically begging him to take his side that day.
Anyway Solicitor told me I would have to pay for half the costs. I spoke to my insurance and they said that they won't pay for the car hire because I didn't use it through them. I asked solicitor what the day rate for my car was, and he said it's an astronomical £340 a day!
I then spoke to CHF and those crooks are now telling me I AM LIABLE if TP doesn't pay
This means I'll have to re-mortgage my house, all for hiring a stupid car at an extortionate rate. I work at a bank so can't affords to have a CCJ. I'm really scared and confused, I can't believe how easily I was duped into signing up for something I didn't even need.
Can anyone help?
Really can't deal with the "doom and gloomers", just want some positive advice.
I read lots of court cases about similar scenarios. Seems a lot of people are getting trapped and extorted in this insurance related scam. This case below was interesting:
"linkedin.com/pulse/good-decision-court-dismiss-credit-hire-claim-grounds-michelle-scully/"
and these articles about it were interesting to read too.
"becket-chambers.co.uk/2018/02/19/voidable-void-enforceability-credit-hire-agreement"
(Sorry MSE won't let me post proper links if I'm new)
So how enforceable is this contract?
What will happen if I don't pay and take it to court?
I'm stunned and angry at myself as nowhere in my right mind would I have taken such an illogical extortionate car hire if I had known that potentially I could be facing such a huge bill.
I wish I had googled this issue that time, I would have given their stupid car back the very next day. I feel totally scammed and let down by Trading Standards etc who allow these opportunists to take advantage of people in vulnerable situations that hire cars in desperation not realising what they are signing up for. Now I know about these liars and should have got his assurances in writing.
Also what I find odd I had some money in my bank but they never asked me if I was impecunious. They then asked me to email copies of my bank statements a month later into the hire.
I'm wondering how these people tbh will take it to court if I don't pay and ask a judge with a straight face for this ridiculous sum of money from an ordinary man?
Please help
0
Comments
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You are partly to blame in this: you should have insisted on receiving paperwork and then reading said paperwork. In the absence of paperwork, you should have done some research.
I know you were desperate for a car, but a little bit of patience and due diligence go a long way.
At this point, your best option is a solicitor.
Even if the TP admitted liability, it's unlikely the insurers would fund the whole costs of the hire car. £340 a day is not a reasonable cost.
Without the paperwork, you don't know if you're liable or not.
You may also be able to talk to the FOS. I'm not sure if they would deal with this, but assuming the company you deal with are FCA registered... But if they are there is another avenue to follow.0 -
Hi
Thanks for the advice. I’ve already contacted FOS and they seem more interested in chasing my insurer to find out why theyre not willing to pay anything for the hire.
I’m just interested right now to know of anyone else in similar situation. Have they had to pay out the full amount to these opportunists?
In hindsight I know about being patient and double checking etc, unfortunately I was heavily involved with some other issues that distracted me from looking into this deeper back then.0 -
Also another point of contention I have with these firms, why do they not accept some liability when handing out a car to someone wrongly assessed?
They should bear some responsibility for bad decisions. However in my case, they knew I was a homeowner with a job and now I think that they purposely didnt care giving me this car regardless of outcome of case.0 -
I!!!8217;ve already contacted FOS and they seem more interested in chasing my insurer to find out why theyre not willing to pay anything for the hire.
You need to remember that a lot of your complaint is not about financial services. So, the FOS has only a limited remit for you.
You are required to limit your costs as much as possible. I think the problem you are going to have is that you are not going to find many people that consider £340 a day reasonable. The insurance company are unlikely to be willing to pay that amount out because of your mistake. You would expect a contribution towards it but figures more like £50-£70 a day.I!!!8217;m wondering how these people tbh will take it to court if I don!!!8217;t pay and ask a judge with a straight face for this ridiculous sum of money from an ordinary man?
You should be putting that to your solicitor to see what he says.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi dunstonh
Many thanks for your reply.
If these crooks decide to settle on me paying around £40 a day which is going rate of Sixt, Hertz etc ... then as painful as it is to pay that I’ll pay it.
However they need to change the law I think to stop these crooks and this scheme.
I hope to see the outcome of the accident first and see what happens from there.
However if I hadn’t used these crooks there would have been no issue regardless of outcome of this case.
Now it just feels like I’m desperately fighting to win this case just to pay a greedy CHF. This is insane I think, a service thats supposed to help in an RTA becomes the main liability itself making victims of both parties. When will the law change and sort these loan sharks out?0 -
Sorry another question. Nearly anyone can see this cost is extortionately high. Is it possible through courts regardless of the contract signed, can i argue down the day rate too with a good solicitor?0
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Do you have legal cover with your car insurance? They might be able to help?0
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Hi Marlot,
good question...no unfortunately that year I never took it out as it was an add-on I didn't see the value of until mow unfortunately. I think my issue is trying to prove misrepresentation, but not sure how I will do it as it was a verbal exchange.
Just at the back of my mind I can't believe how easy it is to trick people into these unfortunate circumstances.0 -
This does seem a bit of a mess. First issue is liability for the accident. Sounds like the other insurers think this is a slam on, ie car pulls in front of lorry, reduces their braking distance then slams the brakes on making the lorry hit the car. I hope you present well in court because it will come down to who the judge believes on the day. It won't be 50/50, it will be non fault or a fraud ruling.
Who your accident management company are could play a big part, ie have they been involved in previous fraudulent cases.
Turning to the hire even a top spec gt passat would attract a maximum recoverable rate of £65 plus vat. In view of this how did £340 a day seem reasonable. You could have bought the car brand new for the amount claimed.
What steps did you take to chase up repairs yourself. Up to 30 days is reasonable (just) 87 is ridiculous.
Be aware that even if liability settles in your favour the judge is going to ask you to answer these types of questions. Expect the courts to award between £2000 to £2500 towards the hire. If the chf try and chase you for the balance tell them to get lost and you will see them in court.0 -
Given the amounts involved, you might hire a specialist solicitor to help you out. The other solicitors will only be looking out for their clients (insurances firms, car hire firms etc). You will feel a lot better if you have someone with you who understands what is going on.Changing the world, one sarcastic comment at a time.0
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