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Mercedes Finance asking me to sign to voluntary terminate Agreement

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Keezing
Keezing Posts: 322 Forumite
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edited 16 February 2017 at 2:01PM in Motoring
I issued a voluntary termination on my PCP to Mercedes Benz finance 3 days ago and I just called them to make sure they received it, as I have heard nothing

They confirmed that they received the request and are sending me a voluntary termination "pack" which I need to sign and return in order to confirm the voluntary termination. I should receive that "within 4-5 working days".

The person said the agreement would not be terminated unless I signed the "pack".

Is this accurate?

I was under the impression that I would not need to sign anything other than a condition report. You would think Mercedes would be following the rules by now.

Thanks a lot for your help.

Edit: Looks like this is common for Mercedes: http://www.pistonheads.com/gassing/topic.asp?t=1604772
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  • verityboo
    verityboo Posts: 1,017 Forumite
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    This site says the following:

    http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

    ' You don’t have to sign forms or other documentation; simply send them your letter (e-mail is acceptable but recorded delivery is better) and stick to your guns.'

    I would suggest you ask them to put in writing that you need to sign the additional forms and if they do raise an official complaint
  • Keezing
    Keezing Posts: 322 Forumite
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    Thanks Verityboo

    It's funny that on the site you link to, the very first comment is:

    I have recently sent Mercedes finance a letter to end my hire purchase agreement under the half rule.

    I’ve recieved a letter back asking me to sign a voluntary termination confirmation before they will give me a date for collection. I’m very hesitant to sign this but they said I can’t end the agreement without signing and returning the letter. Any suggestions?

    I wonder why they have this policy?
  • peter_the_piper
    peter_the_piper Posts: 30,268 Forumite
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    It'll only work in their favour, whatever it is.
    I'd rather be an Optimist and be proved wrong than a Pessimist and be proved right.
  • verityboo
    verityboo Posts: 1,017 Forumite
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    When the rules governing the right to VT an HP agreement were written, PCP type HP agreements had not been invented. Therefore the rules about VT do not give Mercedes the right to claim money if you have gone over the agreed mileage (pro-rata)
    Typically the extra documents that they send you to sign ask you to agree to pay such extra charges
  • Keezing
    Keezing Posts: 322 Forumite
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    Fortunately I am way below the mileage limit.

    Plus I just paid a body shop to fix all the dings and scratches.

    The car is as good as new. I wonder if they will still find something to charge me for :)
  • forgotmyname
    forgotmyname Posts: 32,588 Forumite
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    Your bodywork repairs may not be upto Mercedes standards. Been a few posts on that on here.

    They found substandard repairs.
    Censorship Reigns Supreme in Troll City...

  • Keezing
    Keezing Posts: 322 Forumite
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    Probably. But honestly they did such a good job at getting the dents out I wasn't even sure if I was looking in the right place for them.

    I guess I'll cross that bridge when I come to it!
  • MobileSaver
    MobileSaver Posts: 4,244 Forumite
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    Keezing wrote: »
    They confirmed that they received the request

    For the record, you are not really requesting anything but are invoking your statutory right. This may seem pedantic but it will give you the correct mindset that you have done all you need to do and they can go whistle for anything else! :D
    Keezing wrote: »
    The person said the agreement would not be terminated unless I signed the "pack". Is this accurate?

    Totally untrue; they will complain, stamp their feet and even blatantly lie but your only obligations are:
    1. to give them notice the agreement is to be terminated on a specific date
    2. to pay at least 50% of the original total amount payable
    3. to have taken reasonable care of the car
    If you have fulfilled all three of the above then your finance agreement and all liabilities will end on the specific date, regardless of whether you have signed anything else and even regardless of whether they have collected the car.

    The only reason they want you to sign more paperwork is to make you agree to any additional charges they want to levy. Under section 99 of the Consumer Credit Act 1974 they cannot charge you a penny extra even if there is the odd bit of damage, a missing service or if you have gone over your mileage allowance a bit; basically if the damage/mileage can be considered reasonable for the age of the car then they do not have a leg to stand on.

    Of course the finance companies know this and so they want you to sign another agreement (the "voluntary termination pack") which will be outside the Consumer Credit Act; signing the pack could far too easily make you liable for all sorts of additional costs including scratches, services, mileage and delivery/collection - simply refuse to sign point blank and thank them for confirming they have received your statutory notice.
    Every generation blames the one before...
    Mike + The Mechanics - The Living Years
  • motorguy
    motorguy Posts: 22,487 Forumite
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    verityboo wrote: »
    When the rules governing the right to VT an HP agreement were written, PCP type HP agreements had not been invented. Therefore the rules about VT do not give Mercedes the right to claim money if you have gone over the agreed mileage (pro-rata)
    Typically the extra documents that they send you to sign ask you to agree to pay such extra charges

    Thats exactly it - they'll make you sign to commit to extra stuff you arent liable for. For example, to allow them to claim back for extra miles.

    Dont sign anything at all - you are under no obligation to do so.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
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    MobileSaver wrote: »
    For the record, you are not really requesting anything but are invoking your statutory right. This may seem pedantic but it will give you the correct mindset that you have done all you need to do and they can go whistle for anything else! :D



    Totally untrue; they will complain, stamp their feet and even blatantly lie but your only obligations are:
    1. to give them notice the agreement is to be terminated on a specific date
    2. to pay at least 50% of the original total amount payable
    3. to have taken reasonable care of the car
    If you have fulfilled all three of the above then your finance agreement and all liabilities will end on the specific date, regardless of whether you have signed anything else and even regardless of whether they have collected the car.

    The only reason they want you to sign more paperwork is to make you agree to any additional charges they want to levy. Under section 99 of the Consumer Credit Act 1974 they cannot charge you a penny extra even if there is the odd bit of damage, a missing service or if you have gone over your mileage allowance a bit; basically if the damage/mileage can be considered reasonable for the age of the car then they do not have a leg to stand on.

    Of course the finance companies know this and so they want you to sign another agreement (the "voluntary termination pack") which will be outside the Consumer Credit Act; signing the pack could far too easily make you liable for all sorts of additional costs including scratches, services, mileage and delivery/collection - simply refuse to sign point blank and thank them for confirming they have received your statutory notice.
    Totally agree with the above.

    More information can be found at the Legal Beagles website - http://legalbeagles.info/forums/showthread.php?34548-Voluntary-Termination-of-a-Hire-purchase-or-conditional-loan-under-the-CCA-1974
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