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Credit Hire Agreement Template for England and Wales

A Credit Hire Agreement is a legally binding contract governed by English and Welsh law that facilitates the provision of a replacement vehicle to an individual or business on credit terms, typically following an accident where they are not at fault. The agreement outlines the terms of hire, including daily rates, duration, insurance requirements, and payment terms, while ensuring compliance with consumer credit legislation and industry standards such as the ABI General Terms of Agreement.

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What is a Credit Hire Agreement?

A Credit Hire Agreement is essential when providing replacement vehicles to individuals or businesses who require temporary transportation following an accident, particularly in non-fault situations. Under English and Welsh law, this document establishes the contractual relationship between the hire company and the hirer, detailing the terms of credit provision, vehicle specifications, insurance requirements, and payment obligations. The agreement must comply with consumer credit legislation, including the Consumer Credit Act 1974 and related regulations, while also adhering to industry standards and best practices. It serves as a crucial document for protecting both parties' interests and facilitating potential cost recovery from third-party insurers.

What sections should be included in a Credit Hire Agreement?

1. Parties: Identification of the credit hire company and the hirer, including full legal names and addresses

2. Background: Context of the hire arrangement, including circumstances leading to the need for a replacement vehicle

3. Definitions: Key terms used throughout the agreement including 'Hire Period', 'Daily Rate', 'Insurance', etc.

4. Hire Terms: Core terms including duration, vehicle details, and pricing

5. Payment Terms: Details of charges, payment method, and payment schedule

6. Insurance Requirements: Mandatory insurance provisions and requirements

7. Vehicle Condition and Return: Standards for vehicle maintenance and return conditions

What sections are optional to include in a Credit Hire Agreement?

1. Collision Damage Waiver: Optional insurance coverage for additional protection beyond standard insurance requirements

2. Additional Services: Extra services such as delivery/collection, GPS, child seats and their terms

3. Credit Recovery: Terms for recovery of costs from third party insurers in accident-related hires

What schedules should be included in a Credit Hire Agreement?

1. Schedule 1 - Vehicle Specification: Detailed description of the hired vehicle including make, model, registration, condition

2. Schedule 2 - Rate Card: Breakdown of all applicable rates and charges

3. Schedule 3 - Insurance Details: Comprehensive insurance information and requirements

4. Appendix A - Vehicle Condition Report: Initial and final condition reports with photographs

5. Appendix B - Terms and Conditions: Standard terms and conditions of hire

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Document Type

Credit Agreement

Sector

Banking

Cost

Free to use

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