Provide three months of bank statements, credit card statements, and savings account statements covering the period before and after the hire. Show that the claimant's income, savings, and available credit would not have allowed them to pay hire charges upfront without unreasonable sacrifice. Explain any earmarked savings or financial commitments.
What is impecuniosity in credit hire?
Impecuniosity is the financial inability of a claimant to pay for a hire vehicle on the open market. Where impecuniosity is established, the claimant may recover the full credit hire rate rather than being limited to the BHR. The test asks whether the claimant could have paid hire charges without making unreasonable sacrifices.
What evidence of impecuniosity is needed in a witness statement?
The claimant should disclose bank statements, credit card statements, savings accounts, and any loans or overdraft facilities for three months before and after the hire period. The statement should explain why the claimant could not have afforded to pay for hire upfront, including whether any savings were earmarked for specific purposes.
Who has the burden of proof in a credit hire claim?
The claimant must prove the need for a hire vehicle, that the hire was reasonable, and the period of hire. If the defendant alleges the claimant could have hired more cheaply (the BHR argument), the burden of proving the Basic Hire Rate falls on the defendant with direct evidence of local rates.
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