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Endsleigh policyholders face ARMS action

At least 20 bodyshops launched a direct action against Endsleigh Insurance policyholders at the end of November in a bid to get paid for repairs commissioned by its collapsed work provider ARMS.

Letters have been sent to around 400 motorists whose vehicles have been repaired through Endsleigh policies. They point out that the repairers have not been paid by the insurer, and claim that this is a breach of contract.

The action is being coordinated by Retail Motor Law, the automotive law firm started last year by ex-RMI lawyer Andrew Moody. “The repairers have done work for the policyholders concerned and have their contact details, so they are simply writing to them to ask them to pay the outstanding invoice,” says Moody.

Customers are being given 14 days to pay, after which repairers will begin court proceedings.

Moody says the relatively small sums involved in each case means repairers can use the Small Claims Court to keep costs down. He hopes this can be avoided if the policyholders urge Endsleigh to settle.

“Most of the repairers concerned are now operating on bank loans to cover their debt. Some are owed up to £80,000 in total. They can’t afford to walk away from this money,” he says.

At the time of going to press, Endsleigh had made no comment to AM.

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