I'm currently in quite the legal pickle. My husband had a car accident in 2008 and was persuaded to take a hire car from Accident Exchange. The credit hire period ended after 51 weeks from the date of signature so the statute of limitations doesn't apply - unfortunately! The car was insured in my name and my husband was a named driver on my policy. The credit hire agreement from Accident Exchange names me as the hirer but the have allowed my husband to sign it (there is nothing in the document stating that he is signing on the behalf of the hirer etc. it states that 'I hereby agree to hire this vehicle etc.' and my husband has signed. He queried it at the time but they said it was fine.
Now a year ago, I was contacted by Accident Exchange who said that I was bound to help them with their claim against my insurance company by virtue on some non-liability insurance that my husband took with them. I had to send a letter to my insurance company stating that I would be reporting them to the Financial Ombudsman because I disagreed that the accident was my husbands fault (I did disagree but accepted their ruling at the time).
They called me to ask why I had sent them the letter after so long and I told them exactly why (that i would be liable for the hire charges etc.). They advised that AE didn't have a leg to stand on and that I needn't worry, I was covered by their legal team and there was absolutely no way that I could, at this stage, be liable for the charges. I took them at their word (how I wish I'd asked for it in writing).
A week and a half ago, I got a letter from AE advising that they were taking me to court and that I would be subject to a CCJ if I didn't pay. I called the insurance company again, who categorically advised that I would not be financial impacted whatsoever and that they would handle it all. They've not yet confirmed this in writing.
Two questions, if you would be so kind, first of all, am I liable for a debt that i didn't sign up for? Secondly, are my insurance company obligated to stay true to their word (they record all calls in the claims dept)?
Thank you!