March 18, 2009

A new High Court ruling suggests that in future credit hire firms (CHOs) will need to ensure claimant drivers sign paperwork before being provided with a vehicle ‚ where previously documents might not be sent out until weeks or months after the hire period.

His Honour Judge Worster last month upheld a decision by Birmingham County Court in the case of Company Call Centre v Sheehan [2009], which found that credit hire charges of £4,250 for a BMW Z4 over 15 days sought by accident management company Helphire were unenforceable because paperwork was not signed until long after the hire period ended.

The insurers, Sheehan, had claimed that the costs were unreasonably high and had not been made clear in advance. The judges agree, suggesting CHOs will need to provide greater clarity upfront about hire charges and paperwork in future.


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