The basis of ‘Credit Hire’ is well established. Where a defendant tortfeasor has caused the loss of the claimant’s vehicle the claimant may obtain another vehicle to compensate when such is necessary.
The aim of the credit hire company is to assist the claimant as soon as possible following the loss and provide the claimant with an appropriate replacement vehicle.
Credit hire organisations (CHO’s) differ from the traditional mainstream hire companies, as the hirer does not pay for the use of the hire car at the time of hire. The CHO provides the claimant with a vehicle and an agreement is signed allowing the claimant to delay payment until a claim is brought against the negligent driver, which usually results in the recovery of the hire charges therefore giving the claimant the use of a car at no charge to themselves.
The hire company makes its profit by charging for this credit facility.
Disputes surrounding the value charged for the hire can arise therefore if this is the case, it is for the defendant or claimant to gather sufficient evidence to show that the claimant acted unreasonably or reasonably by choosing to hire on a credit hire basis when more cost efficient alternatives were available.
Basic Hire Reports have been and continue to be exceptionally successful for both defendant and claimants in supporting their arguments for the need of a credit hire vehicle.