CHO Address FOS Statement

You may be aware of a statement released by the Financial Ombudsman Services (FOS) earlier this month on the subject of credit hire.

This week, Chair and CEO of the Credit Hire Organisation (CHO), Anthony Hughes, has written to Abby Thomas, Chief Executive of FOS, in response to the statement and a copy of the letter is available for members to download here.

The CHO has also released a statement in response to the publication, which is below:

“Commenting on the Financial Ombudsman Service’s recent statement on credit hire, 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 being repaired 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 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.” 

“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 FOS states that ‘it is working with the industry,’ but we have had no approach, neither have our members. I have written to the Chief Executive of the FOS asking for an explanation of the rationale behind this move, and to request a meeting so that we can hear from her directly why her organisation has raised this issue.” 

If you have any further comments, please email