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Accident Exchange prepared for next stage of Autofocus dispute

Credit hire company Accident Exchange is still pursuing Autofocus after it has accused the company of costing it over £135 million.

Accident Exchange took Autofocus to court in October 2009 over allegations that it gave bad information in compensation cases going as far back as 2007.

Steve Evans, Accident Exchange chief executive, said cases which could make up millions in missing revenue to the company have been affected by “factually incorrect” evidence given by Autofocus on estimates on how much replacement vehicles would cost.

Accident Exchange says this evidence was often significantly undervalued, meaning it recovered less than it should have, affecting its financial results.

Autofocus went into administration on July 28, 2010.

Evans said: "The first challenge in resolving the Autofocus issue was to identify those claims which we could demonstrate were impacted directly as a result of dishonest evidence being advanced to reduce the settlement of the claim. Those damages we identified at around £17 million.

"We have made good progress in settling those claims with a large number of insurers who recognised that the evidence they had relied on was unreliable. The reality is, however, that the damage inflicted from this fraud went far deeper and we shall be commencing a further action shortly seeking to recover in excess of £135 million."

Evans believes judgement in the most recent four test cases involving AXA Insurance is expected from the Court of Appeal within weeks. If, as expected, leave to appeal is granted, then the Court is likely to order retrials in the dishonestly determined cases.

Insurers against whom Accident Exchange is either not in dialogue and/or have so far failed to respond to the allegations originally made in December 2011, and who have retained a windfall generated by Autofocus’ dishonest evidence, include AXA, Brit, HSBC, Zurich, Equity, Saga, Endsleigh, Tradex and Jubilee as well as a number of other smaller insurers.



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Comments

  • Mark Masheder - 08/01/2013 11:24

    WHERE DOES THIS LEAVE THE SHAREHOLDERS,I STIL HAVE MY SHARES BUT ARE THEY WORTHLESS,OR WILL I BE ABLE TO CLAIM SOME SORT OF RECOMPENSE