The government issued its whiplash consultation today, and buried in the report is a section on credit hire. Essentially, and despite the outcome of the CMA enquiry, insurers have persuaded the government to have another go at credit hire just over a year after the CMA's exhaustive enquiry: MoJ has asked for responses to the following questions, with a deadline of 6 January 2017.
MoJ has decided that it is perfectly OK to hold a consultation period through the Christmas and New Year holidays, so effectively this consultation is for four weeks. It makes a mockery of the term 'consultation.'
Moreover, the government's apparent willingness to listen to insurers on this issue, as well as personal injury also suggests that Theresa May's words on entering Downing Street at the start of her premiership: “When we make the big calls we'll think not of the powerful but you (ordinary working people), when we pass new laws we'll listen not to the mighty but to you,” are hollow.
We will pick this up at the CHO Annual Conference next week (24 November), so it is imperative that you attend and hear at first hand what this means for members. Email invitiations have been sent to members during the last two months. If you haven't replied, now is the time to do so.
Here are the credit hire questions in the consultation. Any member of the public, or company with an interest in these issues, is invited to respond.
Which model for reform in the way credit hire agreements are dealt with in the future do you support?
a) First Party Model
b) Regulatory Model
c) Industry Code of Conduct d) Competitive Offer Model e) Other
Please provide supporting evidence/reasoning for your view (this can be based on either the models outlined above or alternative models not discussed here).
Question 23: What (if any) further suggestions for reform would help the credit hire sector, in particular, to address the behaviours exhibited by participants in the market?
Please provide the factors that should be considered and why.
Question 24. What would be the best way to improve the way consumers are educated with regards to securing appropriate credit hire vehicles?