An ABI initiative to resolve outstanding debts owed to credit hire operators by British insurance companies is heading towards failure, warned the National Association of Credit Hire Operators (Nacho).
The initiative, which was launched in July, promised to resolve 75% of debts outstanding for more than 90 days before 1 November. Nacho said only a small number of the debts had been repaid, leaving some credit hire firms in financial difficulties.
Nacho said the amount owed to credit hire companies by insurers was over £100m.
Nacho chairman ken Bobbins said insurers were "blithely ignoring the General trade Agreement they signed with Nacho and the Association of Accident Management".
Nacho said some of the outstanding debts were over two or three years old.
