VT excess milage

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Mccullochcj
Mccullochcj Posts: 11 Forumite
in Motoring
Hi there,

Recently did some digging around this and found that most online forums say that once you have VT'd the car you are not legally bound to pay the excess milage because the contractual terms are null and void.

This is fine, however the letter I have received states that the excess milage charge is a pre-termination liability, and is therefore payable under section 99 of the CCA.

Any ideas on querying this?

Thanks :)

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  • motorguy
    motorguy Posts: 22,479 Forumite
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    Mccullochcj wrote: »
    Hi there,

    Recently did some digging around this and found that most online forums say that once you have VT'd the car you are not legally bound to pay the excess milage because the contractual terms are null and void.

    This is fine, however the letter I have received states that the excess milage charge is a pre-termination liability, and is therefore payable under section 99 of the CCA.

    Any ideas on querying this?

    Thanks :)

    I personally would ignore it. Dont sign any paperwork, used a templated termination letter you'll find online if required.

    Its pretty much uninforcable although they will bluster a lot about it.
  • motorguy
    motorguy Posts: 22,479 Forumite
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    Some more info here-

    http://www.consumeractiongroup.co.uk/forum/showthread.php?465706-Mecedes-finance-VT-amp-Excess-mileage-charges

    But more specifically from that thread

    "173 Contracting-out forbidden.
    (1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act."

    Any demand for an excess mileage payment is considered to be inconsistent with your rights under the CCA

    Also, make sure its a Voluntary Termination, and not a Voluntary Surrender you are doing

    Theres also a standard template in that thread too
  • Mccullochcj
    Mccullochcj Posts: 11 Forumite
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    Thank you, most helpful. They've sent me a copy of the agreement I signed which clearly states 'Hire Purchase Agreement'- I thought it was a PCP?! Not sure of the difference or what it matters in my case though.

    Worryingly, the agreement states that if I I terminate early then I still have to pay the excess milage as it's a sum which is payable before the termination? This frightens me!
  • motorguy
    motorguy Posts: 22,479 Forumite
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    Mccullochcj wrote: »
    Thank you, most helpful. They've sent me a copy of the agreement I signed which clearly states 'Hire Purchase Agreement'- I thought it was a PCP?! Not sure of the difference or what it matters in my case though.

    Worryingly, the agreement states that if I I terminate early then I still have to pay the excess milage as it's a sum which is payable before the termination? This frightens me!

    PCP is a form of hire purchase agreement, so thats fine.

    Its not. Its bluster and designed to frighten you in to paying.

    Read that link i posted from the consumer action group
  • neilmcl
    neilmcl Posts: 19,460 Forumite
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    Another good resource is http://www.legalbeagles.info/forums/showthread.php?77612-A-guide-to-voluntary-termination-Your-rights
  • molerat
    molerat Posts: 31,962 Forumite
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    Although the FOS disagree with the above.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
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    molerat wrote: »
    Although the FOS disagree with the above.
    In what respects and can you provide a link for this?
  • molerat
    molerat Posts: 31,962 Forumite
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    edited 20 May 2017 at 4:15PM
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    Just Google FOS decisions excess mileage. I cannot find one where they upheld a complaint on excess mileage charges after VT. There were some upheld in regard to excess mileage but were on technicalities rather than the legality of imposing the charges. The "reasonable care" clause does include mileage as well as other damage according to the FOS. The only true test of course would be in the County Court / High Court but it seems that no one from either side of the argument is willing to chance it, someone from LegalBeagles needs to put their money where their mouth is. Once the worms are out of the can though ..............


    Just one example http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65660
  • vikingaero
    vikingaero Posts: 10,920 Forumite
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    Beware of some of the forms and "invoices" that some companies try and get you to sign before VTing.
    The man without a signature.
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