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Drive Assist backs down in electronic signature appeal
26 June 2009
The validity of credit hire agreements that have been signed
using electronically imported signatures is once again being called
into question.
In the case of Tyrell v Staniforth [2009], heard at
Northampton County Court, in-house counsel for Browne Jacobson LLP
argued that the claimant should not be entitled to recover any of
her claim for credit hire charges, because she freely admitted
having never signed a credit hire agreement with Drive Assist, the
credit hire company.
The claimant, Miss Tyrell, gave evidence that she had been
offered a courtesy car by her insurers; and that when the vehicle
was delivered she was simply asked to sign an electronic pad to
acknowledge receipt of the vehicle. After the vehicle was returned,
she received a copy of the terms & conditions, complete with
her signature incorporated into the hire agreement.
So as not to penalise Miss Tyrell, who was an innocent party,
the District Judge awarded the claim in full. The defendant
appealed on the basis that the claimant had no residual liability
to pay the credit hire charges, as she openly accepted she was not
made aware of her liability until after the vehicle hire had
ended.
On appeal, Drive Assist decided not to defend their practice of
unilaterally completing hire agreements using the imported
signature of clients who sign a hand-held device. This contrasts
with earlier comments attributed to Ralph Ferguson, claims director
at Drive Assist, who said:
“We are satisfied that our procedures for ensuring customers
understand the credit hire agreement are rigorous and would stand
up to any scrutiny, and that the agreements are enforceable.” (Post
Magazine, Nov 2008).
As a result the company consented to repay the full value of the
credit hire charges totalling £1,179.10.
The result follows the recent case of Company Call Centre
Technology v Sheehan [2009], involving another credit
hire company, in which Browne Jacobson LLP successfully argued that
credit hire agreements, signed months after the vehicle hire period
had come to an end, did not create a liability.
According to recent media reports, the rise in claims made by
credit hire companies adds £20 to the average insurance premium of
every UK motorist. We advise making careful enquiries of claimants
who have hired vehicles on credit hire terms.
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