CHO responds to FOS credit hire warning
19th July 2023Tweet
In response to the statement made by the Financial Ombudsman Service (FOS) regarding the risks of credit hire, the CHO has said it was “surprised and concerned”.
Anthony Hughes, CEO and Chair of the Credit Hire Organisation (CHO) the trade body for the credit hire industry, said: “I’m surprised and concerned by the FOS statement, which significantly overplays the risks to claimants who need mobility while their vehicle is off the road after an accident.
“Apart from a couple of anecdotal cases, the FOS position is remarkably light on data and evidence to justify its argument that consumers could be on the hook for thousands of pounds of credit hire costs.
“The truth is that such circumstances are extremely rare; approximately 500,000 consumers access mobility from a credit hire provider each year, the majority of which come via insurer referrals.”
Anthony continued, “Our members are fully committed to providing the highest quality service, and we are proud of our track record that ensures hundreds of thousands of people can continue to take their children to school or get to work by car. The cost for this service is less than £5 on an average motor insurance premium. I regard that as exceptional value for money.”
The CHO said it had not been approached by FOS, neither had its members and it has written to the Chief Executive of the FOS asking for an explanation of the rationale behind the move, and to request a meeting so that it can hear directly why the organisation has raised the issue.Tweet
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