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.
Related: witness statement drafting software for UK law firms, covering automated CPR Part 32 compliance checks and the UK authority libraries behind every draft.
How do you prove impecuniosity in a credit hire case?
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 should a credit hire witness statement include?
A credit hire witness statement should cover the accident circumstances, vehicle damage, need for a hire vehicle, the hire period and why it was reasonable, any intervention offers received, and financial disclosure if impecuniosity is claimed. It must end with a statement of truth and comply with CPR Part 32 formatting requirements.
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.
See how LegalDocs Assist handles real credit hire scenarios.