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Accident Assistance pulls out of credit hire

Accident Assistance, the GE Capital-owned non-fault accident management firm, has from this month stopped taking new business.

David Muir, Accident Assistance managing director, blamed profitability problems caused by unfavourable rulings on the credit hire/repair sector, including last year's Dimond v Lovell case.

He said: “We are committed to ensuring that our exit from the marketplace is managed effectively and our staff, business partners and customers are supported wherever possible.”

Mr Muir would not comment on whether the company would seek a buyer or go into run-off, but stressed that it would honour existing commitments on repairs and hires in progress.

Meanwhile, rival Helphire's pre-tax losses to September 30 shrank to £1.1m following a sweeping reorganisation, compared to a £48m loss in the same period last year.

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