The latest case report from HF Law. Just for background, Arrow Car Hire has around £360K in assets, according to its most recent accounts at Companies House. The Indian Director Vinayak Soman has been replaced by Mauritian Devraj Gopalsate, all other Officers have resigned.
The registered address for Arrow Car Hire is 57 Hallsville Road Canning Town, which is an Indian restaurant called The Glass Room. You can hire it from £127ph. Above it the Accident Claims Group is registered as an active company. Personal Injury Claims Scotland were also registered at the same address.
Here’s the word;
Insurance provider Hastings Direct and HF a leading legal advisor to the commercial and insurance sectors, were quick to rumble a very sophisticated and calculated scam orchestrated by Arrow Car Hire UK London.
The scam saw several non-fault parties report that they had not been compensated with the funds intended for them, which had already been paid to Arrow Car Hire UK London. The company allegedly obtained party details using aggressive cold calling methods and proceeded to act without their knowledge or consent.
Some of the victims reported being duped and pressured into signing agreements enabling the defendants to deal with claims on their behalf. Armed with forms of authority and/or just the necessary detail, the defendants submitted grossly inflated claims against the fault insurers. The claims consisted of costly repairs, hire charges, recovery and storage charges and other losses.
The insurance provider was then harassed to release early payments to ensure the victims stopped incurring extortionate – but completely fabricated – daily hire and storage charges. The defendants provided desktop engineer reports, repair estimates, invoices and even satisfaction notes that the named parties denied signing. The defendant also submitted invoices for hire, storage and recovery charges and fees for expert reports. The claimed services were not received, and the vehicles were never repaired by the defendants or their alleged repairers, the Kwik Car Repair Network. The victims were left chasing the defendants without access to replacement vehicles, storage or any indication of when their vehicles would be repaired.
RECOVERY ACTION
Determined to protect its customers and put a stop to the scam, Hastings Direct, instructed HF to pursue a recovery action against the defendants. In the case of Advantage Insurance Company Limited v Arrow Car Hire UK London Ltd and Mr Vinayak Soman, proceedings were issued seeking repayment of two vehicle damage payments. The recovery action included claims for interest and £10,000 in exemplary damages, per claim.
The consolidated cases were heard at Hastings County Court, where the judge awarded Hastings Direct the full amounts as claimed plus £19,800 in costs. The defendants are now required to pay a total of £49,477.02 within 14 days.
When awarding exemplary damages, the judge emphasised the importance of the award acting as a clear message to rogue accident management companies or individuals planning to commit fraud.
Luke Warner, Head of Claims Fraud at Hastings Direct said, “It’s all too easy for innocent parties to fall victim to online scams and the pressure of cold calling. Our priority is to protect our honest and genuine customers and we’re very pleased with the judgment, which holds the defendants to account for attempting to hijack and sabotage the handling of otherwise honest claims for compensation.”
Morgan Davies, Partner at HF commented, “Such outrageous exploitation and abuse of trust by professional enablers at a time when policy holders are vulnerable, should not go unchecked. It’s very satisfying to see the Courts and our client taking a robust approach to companies and individuals acting fraudulently for personal gain.”
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