Accident Assistance, a non-fault accident management company, has made 80 of its 111 staff redundant.
The Birmingham-based company will stop accepting new business from the credit hire market and will focus on collecting any outstanding payments from insurers. It claims its profitability has been cut by recent rulings on the credit hire sector, including the Dimond v Lovell case handed down by the House of Lords last year and the move to standardise tariffs across the industry at an unprofitable level.
The company refused to comment on whether it would try to find a buyer for the business, or whether it would go into run-off.
Accident Assistance will continue to honour its existing extended credit hires until the redundancies are completed.