Fraud by misrepresentation credit hire

[Equity4All]

I'm looking for some advice.

I was involved in a no fault car accident where a third party crashed into my car when it was parked. They admitted full liability and I went through their insurance to get my car fixed.

Their insurance also arranged a hire car through a well known care hire company using a direct hire reservation, but before this I had also been referred to them from my own insurer but under credit hire arrangements so there was effectively two bookings on their systems.

I made it very clear by email, when they contacted me, that I didn't want to use the credit hire arrangement and only wanted to use the direct hire reservation with the third party. They acknowledged this by return email and said they'd put a note on my.file to reflect.

I then went to collect the car and again stated In no uncertain terms that I wanted to use the direct hire reservation (they again asked which reservation I wanted to use). They took my card details and when I questioned why this was as it was the direct hire the third party was paying for, they assured me it was only to be used if I got parking or speeding fines.

They found me a car and rushed me through the paperwork on tablet, instead of reading it they told me what I was signing for verbally and said it was the direct hire car. Stupidly I didn't read the contract I just took their word for it as they are well known company I thought I could trust.

Long story short it turned out they tricked me into signing a credit hire agreement; when I found out (weeks later after several events revealed I wasn't using the direct reservation) I got them to pick the car up immediately and terminated the contract. They then billed by credit card for the whole hire!!!

I have raised an official complaint which is ongoing, but what further action can I take? I am looking into a credit card charge back in the hope that they can get my money back, but it is not just about that I want this firm to be seen for what they have done which is fraudulent misrepresentation to line their own pockets as they get a much higher rate for the credit hire. They obviously thought I'd never find out and it would be something they could get away with to make more money and commission.

Any advice? I was surprised to find out they aren't even regulated so I can't complain to the financial ombudsman. In the email chains I have they clearly acknowledge I won't be using credit hire, then once the car is hired out they also continue to refer to it as a courtesy car and continue to mislead me throughout the various exchanges.

What more can I do to get my money back and report them to somebody that will listen?

[echat11]

Hi Equity

Welcome to LB

What was the cost of hire?

a) Make a Section 75 claim (providing it's over £100), there is a joint liability, the company and Credit Card company.

Send the following to both of them, make sure you get Proof of Postage.

https://www.citizensadvice.org.uk/co...edit-provider/

b) Report the company to Trading Standards via Citizen Advice Bureau (link above)

[Equity4All]

Thank you Echat,

The amount was over £1000.

I will follow your advice.

Would it also be possible to recover this amount on a small claims court?

[echat11]

Yes, providing you have the evidence to back up the claim.
Make sure you follow CPR Rules, i.e. Letter Before Action etc.
Remember to exhaust, complaints procedures, mediation etc first.
Court is a last resort.

[Equity4All]

Thanks for the response.

As an update I have opened a charge back today through my credit card.

I still don't have any documents or invoice for the car hire charge either; I have asked the car hire company for this multiple times and they have ignored me so I don't even have the breakdown, although verbally they said it was for a period of hire.

Even more bizarrely, when I spoke to the insurance whom the hire was meant to be with, they said they had not received any bill and should they have they would have settled it because I still don't have a car (they are now supplying me with one direct).

I raised this with the hire company too and they even ignored that- it seems strange they will give me no response or bill the correct person (putting aside the fact the contract itself should be voidable for fraudulent misrepresentation).

How likely credit card charge backs to succeed?

The insurance want to help more but as I can't even get any documents off the car hire place I am stuck with the chargeback as my only solution at present, because the insurance wsnt to see the invoice! Hope it works!

[echat11]

Thanks for the response.

As an update I have opened a charge back today through my credit card.

I still don't have any documents or invoice for the car hire charge either; I have asked the car hire company for this multiple times and they have ignored me so I don't even have the breakdown, although verbally they said it was for a period of hire.

Even more bizarrely, when I spoke to the insurance whom the hire was meant to be with, they said they had not received any bill and should they have they would have settled it because I still don't have a car (they are now supplying me with one direct).

I raised this with the hire company too and they even ignored that- it seems strange they will give me no response or bill the correct person (putting aside the fact the contract itself should be voidable for fraudulent misrepresentation).

How likely credit card charge backs to succeed?

The insurance want to help more but as I can't even get any documents off the car hire place I am stuck with the chargeback as my only solution at present, because the insurance wsnt to see the invoice! Hope it works!

Unless the Chargeback / Section 75 claim is 'blindingly' obvious, then they make it as difficult as possible.

Evidence and a 'good summary' improves your chances.

Send / email the 'car hire place' a Subject Access Request - https://legalbeagles.info/library/gu...ccess-request/

[Equity4All]

Many thanks for this.

I have made a subject Access request - the response I got was that I need to make this request again separately through the companies designated information portal!

Is this correct? My understanding is that it is not and I can make this request to any one or any place in the company, but I may have interpreted that incorrectly?

The SAR and an escalation of the complaint to the BVRLA seem to have forced the car hire company to be more forthcoming.

Suddenly they have now provided me with an invoice! Bizarrely they are saying that they reached out to the insurance to extend the hire but they were unwilling to do so; even though this is factually incorrect as the insurance actually raised several more reservations with them and are hiring me another car now as mine still is in their garage!

It all seems very strange - the car hire company are still refusing to refund me and saying per their terms and conditions of contract (the one they induced me to sign through fraudulent representation) says they can charge me for the car if they can't charge the insurance which is even more ridiculous as they have made no attempt to do this- maybe that could be a line of complaint in my credit card charge back (in addition to the fraudulent misrepresentation), because surely it is breach of contract as they never even asked the insurance to pay or extend and had multiple additional reservation requests from them? They simply ignored this and billed my card with no explanations!

I also reached out to citizens advice, and they said that the insurance is liable and I should raise an official complaint with the insurance then if they don't settle the bill complain to financial ombudsman - all a bit strange considering they haven't even heard from the car hire place!

All a bit of a muddle but seems to be making some progress that is to your help

[Equity4All]

Also I have referred to the terms and conditions in the contract they Induced me to sign and it says this

"to recover the outlay for hire and/or repair. You understand that Enterprise can pass your details to their business partners
for the purpose of pursuing the at fault insurer for recovery of the cost of your
hire and/or repair.
You understand that Enterprise may pass your personal details to the insurers
or authorised representatives of the party (or parties) with whom you have had
an accident for the sole purpose of recovering the monies due from them as a
result of your claim.
You agree to cooperate and give your permission for Enterprise to instruct legal
representatives to act for you and to issue proceedings in your name to recover
the hire/repair charges.
Where the hirer is a business, the person signing this rental agreement
confirms that they have the authority to contractually bind the Hirer.
If you don’t require the vehicle at any point during hire, you shall return the
vehicle to Enterprise Rent A Car e.g. if you are out of the country.
You understand that if you hire a car from Enterprise Rent A Car, you are
ultimately responsible for the hire charges incurred under the rental agreement.
I authorise the motor insurance bureau to make payment to and in the name of
Enterprise Rent-A-Car UK Limited for any and all payment of compensation and
costs for and relating to my credit hire and/or credit repair charges"

All that is very vague but seems to suggest they should be going as far as issuing legal proceedings to recover the costs from the insurer- not just billing me without trying.. are they allowed to do that or is this also a breach of contract that I can highlight In the credit card recharge as an additional line to the fraudulent misrepresentation (it may make the case more clear cut for them pursuing that angle)?

Many thanks for your time and help

[Equity4All]

I have also found this clause in the misrepresented contract. Am I reading this correctly, they are actually in breach of this clause because it says the payment they took off my credit card immediately is not actually due for 11 months from the due date?!

(ii) Where the rental of the Vehicle is consequent upon Renter’s own vehicle having been involved in an accident, and the replacement Vehicle has been provided to Renter on a credit basis, payment of the charges due under the Agreement are deferred for a period not exceeding 11 months from the date of the Rental Agreement. At the end of the deferment period the amount due becomes payable in one single payment. No interest or other charges is payable during, or in respect of, the deferment or credit period. The credit amount is for a fixed sum which is the daily charge / charges multiplied by the number of days of the Rental Period..

[echat11]

Many thanks for this.

I have made a subject Access request - the response I got was that I need to make this request again separately through the companies designated information portal!

Is this correct? My understanding is that it is not and I can make this request to any one or any place in the company, but I may have interpreted that incorrectly?

The SAR and an escalation of the complaint to the BVRLA seem to have forced the car hire company to be more forthcoming.

Suddenly they have now provided me with an invoice! Bizarrely they are saying that they reached out to the insurance to extend the hire but they were unwilling to do so; even though this is factually incorrect as the insurance actually raised several more reservations with them and are hiring me another car now as mine still is in their garage!

It all seems very strange - the car hire company are still refusing to refund me and saying per their terms and conditions of contract (the one they induced me to sign through fraudulent representation) says they can charge me for the car if they can't charge the insurance which is even more ridiculous as they have made no attempt to do this- maybe that could be a line of complaint in my credit card charge back (in addition to the fraudulent misrepresentation), because surely it is breach of contract as they never even asked the insurance to pay or extend and had multiple additional reservation requests from them? They simply ignored this and billed my card with no explanations!

I also reached out to citizens advice, and they said that the insurance is liable and I should raise an official complaint with the insurance then if they don't settle the bill complain to financial ombudsman - all a bit strange considering they haven't even heard from the car hire place!

All a bit of a muddle but seems to be making some progress that is to your help

a) Is this correct? My understanding is that it is not and I can make this request to any one or any place in the company, but I may have interpreted that incorrectly?

Most companies would just past the request on.

b) I also reached out to citizens advice, and they said that the insurance is liable and I should raise an official complaint with the insurance then if they don't settle the bill complain to financial ombudsman - all a bit strange considering they haven't even heard from the car hire place!

The insurance company can take up to 8 weeks to look into this, If your still not happy, then you can refer the matter to the FOS. You would have tell them exactly what transpired. As you state there hasn't been too much communication between them.

[echat11]

Also I have referred to the terms and conditions in the contract they Induced me to sign and it says this

All that is very vague but seems to suggest they should be going as far as issuing legal proceedings to recover the costs from the insurer- not just billing me without trying.. are they allowed to do that or is this also a breach of contract that I can highlight In the credit card recharge as an additional line to the fraudulent misrepresentation (it may make the case more clear cut for them pursuing that angle)?

Many thanks for your time and help

You can tell the Credit Card company exactly what has transpired, but I think you need to keep things 'simple'.

Make your case clear and understandable. Let the Credit Card company do the investigating.

[echat11]

I have also found this clause in the misrepresented contract. Am I reading this correctly, they are actually in breach of this clause because it says the payment they took off my credit card immediately is not actually due for 11 months from the due date?!

If the Credit Card company play 'hardball', you can introduce all these points.

[Equity4All]

Thanks, as an update my credit card recharge has been successful and I have been refunded the full amount by my card supplier.

They do state the merchant has 30-45 days to challenge this. Hopefully this will force them to charge the insurance company as they originally should have done, but if not and they are unsuccessful in reversing the charge I guess they could then take the case to court?

If they do I assume the court would take onboard the evidence of fraudulent misrepresentation I have and hopefully void the entire contract anyway?

[echat11]

Thanks, as an update my credit card recharge has been successful and I have been refunded the full amount by my card supplier.

They do state the merchant has 30-45 days to challenge this. Hopefully this will force them to charge the insurance company as they originally should have done, but if not and they are unsuccessful in reversing the charge I guess they could then take the case to court?

If they do I assume the court would take onboard the evidence of fraudulent misrepresentation I have and hopefully void the entire contract anyway?

Well done, good result.

a) They do state the merchant has 30-45 days to challenge this. Hopefully this will force them to charge the insurance company as they originally should have done, but if not and they are unsuccessful in reversing the charge I guess they could then take the case to court?

I don't think they, there might be a costs issue for them, it might be 'uneconomical' for them to take the matter to Court.

b) If they do I assume the court would take onboard the evidence of fraudulent misrepresentation I have and hopefully void the entire contract anyway?

I think so, also the Credit Card investigation would help your case, if it ever goes to Court.

[Equity4All]

Hi,

I just wanted to say thanks again for all the help I received on here. It has now surpassed the 45 days the car hire entity has to challenge the charge back and it doesn't appear that they have done.

In another twist the third parties insurance also ended up paying me for the amount they took as well! I made it clear to them I had charged the amount back through my credit card but they said they would pay it anyway, to make sure I would never be out of pocket if it was reversed, so now I have a refund and the same amount again from the third party insurance- at the moment anyway!