Accident management firm collapses

By Tim Rose
|
11 December 2012

More than 250 people have been made redundant with immediate affect after Drive Assist went into administration.

Zolfo Cooper has been appointed administrator of Drive Assist, plus Sol Rental subsidiary and its Millennium Motor Group subsidiary which trades as used car supermarket Nottingham Auto Park and retailed some of its defleeted vehicles.

Joint administrator Alastair Beveridge said the companies recently lost a major customer which resulted in cashflow pressures and administration.

"Regrettably, 259 employees have been made redundant with immediate effect. We will be working alongside all stakeholders to determine the most appropriate next steps for the benefit of all creditors," he said.

Drive Assist was established in 1992 and operated a fleet of around 17,500 vehicles, according to its website.

Creditors may contact the administrators on 0161 838 4583 or driveassistcreditors@zolfocooper.eu

Aftersales

Author: Tim Rose

Editor

tim.rose@bauermedia.co.uk

01733468266

An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.

Comments (5)

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Comments

Archie - 11/12/2012 16:49

Insurance companies celebrating tonight.
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- Littlewoods - 11/12/2012 19:27
  
  @Archie - glad your happy so many great people have lost their jobs just before xmas! pray it doesn't happen to you, selfish p**k
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- Archie - 11/12/2012 21:07
  
  @Littlewoods - Did i say i was happy? These vultures have been forcing premiums up by charging up to £300 per day for like for like car hire when punters would be just as happy driving a bog std courtesy car.
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- littlewoods - 11/12/2012 21:22
  
  @Archie - obviously dont know what your talking about really do you! or your high on crack? if you did you know it wouldnt be up to £300 per day, and if a client was hapy driving a bog standard c/car we wouldnt have been suppling we only supplied to the clients needs.
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- john - 11/12/2012 21:24
  
  I dealt with Drive Assist in my job and there were reasonable compared to other credit hire companies. They also charge ABI rates which are not entirely unreasonable. I feel sorry for the staff and having gone through redundancy myself it’s not pleasant.
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- littlewoods - 11/12/2012 21:39
  
  @john - the thing is these places are a breeding ground for negativity, all the stories about the customers that thank us for the great work and help we offered during a stressful time and making the claims process easier (which there were many on a daily basis) doesn't filter on to here. we did a very good job a lot of the time, and yes we had some complaints but doesn't every company, it always about how an accident management company put up premiums, maybe the false claims and false injuries and set up accidents are more to blame.
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- Archie - 12/12/2012 11:44
  
  @littlewoods - "you only supply to the customers needs ???" You incentivised dealers and bodyshops to promote the fact customers could demand an equivalent car as opposed to the Focus or Corsa thus increasing the total repair bills resulting in increased premiums for all. Mercs,Bentleys,Range Rovers were charged out at 2-3 per day and to rub salt in they even paid the dealers commission plus vouchers for the service dept introducers. No different to ambulance chasers!
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- Rob Chisholm, Applewood Vehicle Finance Ltd - 12/12/2012 12:50
  
  @Archie - Drive Assist may well have been one of the better Accident Management co's, and as such I feel for all of those who through no fault of their own have lost their jobs. But there has been an issue for a long time with regard to Accident Mgt companies and the impact on Insurance premiums (but then the Ins.Co's also have a lot to answer for in this regard), and htat is why we were reluctant to promote the service to any of our customers. This time last year I actually cancelled a Credit Hire car that my partners Insurance Co appointed Ac.Mgt co had arranged - she didn't know what she was getting herself in to - and this car would have been supplied simply because of a broken rear light cluster cover! It took me 5 mins to put in a £1 bulb and make the cover usuable. That saved the 3rd Insurance co about £300 in hire charges - which of course strengthened our hand when it came to 'discussing' the eventual settlement. If the loss of one major customer really has had such an impact on Drive Assist, then I am heartened that we have never gone down the 'too many eggs in one basket' route. It's one of the reasons why like our smaller to medium sized customers and run a mile away from anything you'd call 'major'. Just because they are big doesn't automatically make them good.
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- Littlewoods - 12/12/2012 19:48
  
  @Rob Chisholm, Applewood Vehicle Finance Ltd - one of the question that are asked for deciding if hire is required/ needed by a client is f the vehicle can be made roadworthy by a temporary repair, we go through a lot of details and ask many questions to establish if a need for hire is there, also there are supplied at agreed rates so they cant be any over charging, obviously a lot of you are just jumping on a daily mail style band wagon before knowin the facts, and the company going into adminastration is not just affecting a few people who work there , but also a town where it is one of the biggest employers as well as garages across te country where we are their biggest referrer, as well as the many client we helped along the way. so next time take a look at the bigger pictue befor making ridiculas remarks!
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- Cjb86 - 13/12/2012 09:00
  
  Your all moaning about drive assist and putting up premiums!!! What about ccl help hire Albany assist enterprise and all other amc's? Drive assist was regulated we did nothing wrong and if you check your facts it was the insurance companies passing there clients through to us. All I know now is a lot of my good friends are out of work in a very small town so you ppl with your small minded views hope you have a great Xmas knowing you have a job to go to and you can still feed your family and keep a roof over their heads!!!!
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- Paul Davies - 22/12/2012 15:38
  
  @Cjb86 - Insurance companies are the biggest crooks. They are happy to take premiums all day but god help anyone that needs to make a claim, they will try and wiggle out of paying by lies and deceit. CROOKS. They should be governed more tightly then what they are!!!!!!
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- Paul Davies - 22/12/2012 15:40
  
  @Archi what a idiot!!! insurance companies are the biggest crooks!!!!!
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- Karen Dyer - 30/12/2012 22:06
  
  @Archie - you clearly do not have a clue what your talking about !!! Idiot
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- mawar - 03/01/2013 15:07
  
  @Cjb86 - i agreed with you.. im sorry n sad because my bf was one of the jobless from DA.. its pathethic when ppl still dare to say bout something rubbish than the main prob here..for god sake a lot of ppls suffered from this action..
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- mawar - 03/01/2013 15:07
  
  @Cjb86 - i agreed with you.. im sorry n sad because my bf was one of the jobless from DA.. its pathethic when ppl still dare to say bout something rubbish than the main prob here..for god sake a lot of ppls suffered from this action..
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kevthebass - 11/12/2012 21:07

I do feel sorry for anyone that loses their job, I'm currently unemployed myself, but it's about time the system with it's "accident management" and "injury lawyers" adding to costs was thinned out to save us ALL money.
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G Almeida - 12/12/2012 12:50

My partner is a driver for Drive Assist. He told me that the Finance Director has been arrested, it seems that at least some of the directors milked Drive Assist dry. The external auditors were at the depot about two weeks ago but this news still came as a shock, and just before Xmas too. Not nice at all.
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- Neil - 12/12/2012 18:32
  
  @G Almeida - Like your husband, I worked for Drive Assist up until Monday, we had no idea this was happening, they just turned up, called us in one at a time and then gone. Some drivers and the depot manager stayed on to close things up and get the cars back ready to be "sold" by the administrators. I wish everyone all the best and hope they find a job soon. I hear Helphire have taken most of the claims off DA, so people should ask there first followed by Enterprise Rent A Car. Hope this helps.
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- ODDSOD - 13/12/2012 21:03
  
  @G Almeida - HI.I AM A DRIVER FOR DA AT PRESENT ALL WE ARE DOING IS GOING OUT TO COLLECT VEHICLES WITH NO GUARENTEE WE WILL RECIEVE OUR WAGES?CAME AS A SHOCK TO US!
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John - 12/12/2012 17:13

They will open new same company with different name. Be aware they are scam
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- Littlewoods - 12/12/2012 19:49
  
  @John - how can it be a scam it we are regulated so vigourasly. another pleb with know knowledge of what is happening,
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- #john - 24/12/2012 16:42
  
  @Littlewoods - I know coz I work for them...
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Sitting on the Fence - 20/12/2012 21:46

Drive Assist were the authors of their own downfall. Firstly there was the Chen Wei case law which went against all credit hire companies. Then of course the whistleblowing incident when a former employee shopped an email from senior management which told them to extend hire by two days for each hire. Having to write off nearly 200 million in the process! its the repairers and employees who i feel sorry for! But still you have transferrable skills, use them! There are lots of roles in insurance at present! Get trained, get qualified (CII), get back on the wagon!
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