NAB commits to challenging the Administrators of Drive Assist

Published 07/02/2013 00:00:00 in Press Releases

The RMI’s National Association of Bodyshops (NAB) today announced its intention to challenge the decision by Zolfo Cooper not to honour the repairers’ FSA protected funds following the recent collapse of accident management company, Drive Assist.


Following its collapse on the 10 December 2012, Drive Assist left in excess of 400 of its employees and its entire repair network with an uncertain future. NAB has since been in consultation with the Administrators to secure payments to its members for accident repair services provided to Drive Assist’s customers.   


In correspondence with the administrator, a representative of Zoflo Cooper is quoted as stating ‘we are satisfied that there was no trust in favour of the repairers.’


Tony Lowe, RMI Board member representing NAB members affected, commented   “The repair network has contracted to provide accident repairs to customers of Drive Assist on the agreement that when insurers paid for the services provided, the consequential payments would be kept safely in an FSA regulated account. The Administrators are now refusing to accept that these payments have been made ‘In Trust’.


“The repair community has been left with more than £7million in outstanding payments and it appears the only winners will be the corporate funders, bankers and the administrator. We find this totally unacceptable and intend to right this wrong”


Drive Assist is the latest in a number of high profile collapses of companies operating within this sector. NAB will continue to press for any intermediary companies involved in the motor insurance claims process to have any funds relating to accident repairs fully ring fenced through the on-going enquiry into motor insurance currently being undertaken by the competition commission.   

    

ENDS


NOTES TO EDITORS:


Keely Scanlan, Press Officer

Tel: 020 7307 3410

Mob: 07825097697

Press Office direct line: 020 7307 3422   

Press Office fax: 020 7307 3406


Web: www.rmif.co.uk       Email: keely.scanlan@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses.  The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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