CHO hits stalemate with insurers over 2015/2016 GTA rates

Insurers and the Credit Hire Organisation have reached a stalemate over the revised General Terms of Agreement rates for 2015/2016 amid uncertainty surrounding the true minimum cost of credit hire.

As published in Post Online 27 July, 2015

The impasse is due to repercussions from the Stevens v Equity Syndicate Management case from March last year, which CHO director general Martin Andrews said has led to insurers getting an unrealistic idea of recoverable credit hire rates.

Andrews told Post the issue has also been picked up by the Competition and Markets Authority, which has recently published a report into short-term car hire in the UK.

The report notes that some hire firms are enticing consumers to their websites with extremely cheap rental deals for vehicles that are ultimately unavailable to consumers who try to book them.

The CHO boss said that, before the release of the CMA report, there had been instances of solicitors acting for insurers showing a screenshot of one of these deals in court. With the Stevens review ruling that consumers can only claim the lowest price in the rental range, Andrews said that insurers have been fed a false impression of recoverable credit hire rates by such actions.

Read the full article on Post Online »

Gavin Perry

Partner - Head of Credit Hire

I am a Partner in the Insurance team and Head of Credit Hire.