Hastings Direct and HF have identified and acted against a complex scam involving Arrow Car Hire UK London. The scheme involved non-fault parties who reported not receiving compensation funds, despite payments having already been made to Arrow Car Hire UK London.
According to reports, Arrow Car Hire UK London obtained the details of these parties through persistent cold calling. The company then acted on their behalf without proper consent.
Some individuals stated they were misled and pressured into signing agreements that allowed Arrow Car Hire UK London to manage claims for them. With the necessary authority or information, the defendants submitted claims to insurers that were significantly inflated. These claims included high charges for repairs, vehicle hire, recovery, storage, and other losses.
The insurance provider faced repeated requests for early payments, purportedly to prevent further daily hire and storage charges. These charges, however, were described as fabricated. Victims reported being left without replacement vehicles or clarity on when repairs would occur.
Hastings Direct instructed HF to pursue recovery action against the defendants. In the case of Advantage Insurance Company Limited v Arrow Car Hire UK London Ltd and Mr Vinayak Soman, proceedings were initiated to recover two vehicle damage payments. The action also sought interest and £10,000 in exemplary damages per claim.
The judge at Hastings County Court awarded Hastings Direct the full claimed amounts, along with £19,800 in costs.
Luke Warner, head of claims fraud at Hastings Direct, stated, “It’s all too easy for innocent parties to fall victim to online scams and the pressure of cold calling. Our priority is to protect our honest and genuine customers and we’re very pleased with the judgment, which holds the defendants to account for attempting to hijack and sabotage the handling of otherwise honest claims for compensation.”
Morgan Davies, partner at HF, commented that such exploitation and abuse of trust should not go unchecked, and said it was positive to see the courts and client taking a firm approach to fraudulent activity for personal gain.
The incident comes amid a broader surge in sophisticated insurance scams across the UK, particularly those known as “ghost broking.” Over the past five years, the number of ghost broking scams – where fraudsters sell fake or invalid car insurance policies – has risen by 30%.
Victims are often unaware of the fraud until they attempt to make a claim or are stopped by police, only to discover they are uninsured. These scams frequently target individuals seeking lower premiums, with social media being a common channel for fraudsters to reach potential victims.
In 2024, victims of ghost broking lost an average of £2,206, and those caught driving without valid insurance face not only financial losses but also fines, penalty points, and possible criminal charges.
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