Should I accept a hire bike?

I was involved in an accident at a junction last year. My bike was returned after three months when the repairs were complete. I was given a loan bike by my insurers and was assured I would not be required to pay any charges.

However, the third party’s insurers are refusing to pay the hire charges, and the hire company’s solicitors have now issued court proceedings in my name to recover their losses. What would the consequences be for me If the case goes wrong?

John, by email

Answer

Credit hire is a popular option for those in need of a replacement vehicle while their vehicle is being repaired after an accident. While such agreements offer initial convenience, they can be precarious and the terms of the agreement will dictate what can and cannot be done. In this instance, the consequences of an unsuccessful legal action will depend on the terms of the credit hire agreement you signed and whether the credit hire company chooses to enforce those terms.

There are positives to entering into a credit hire agreement, as it will usually give you immediate access to a replacement vehicle and should come at no initial cost to you. However, the charges can stack up quickly and are often much higher than traditional rental rates. This can lead to lengthy and complex legal disputes on hire charges.

It is essential to read any agreement in full and weigh up the pros and cons and the alternatives before entering into such an agreement.