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  • FIRST POST
    • ScotsMan2017
    • By ScotsMan2017 9th Sep 17, 10:34 AM
    • 9Posts
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    ScotsMan2017
    Excess Mileage Charge - Reached Debt Collectors
    • #1
    • 9th Sep 17, 10:34 AM
    Excess Mileage Charge - Reached Debt Collectors 9th Sep 17 at 10:34 AM
    Hi All,

    Long story short, I became unemployed and then using online advice I VT'd my car. I had planned to keep the vehicle at the end of the term so mileage didn't matter.

    So after VT'd they said based on the estimated mileage I was over, I pointed out that I had paid 50% and that was all I was obligated to pay. The debt has now been passed to DLC, so now I'm not sure what my next move is.

    Any help would be appreciated.
Page 1
    • JP1978
    • By JP1978 9th Sep 17, 10:48 AM
    • 291 Posts
    • 220 Thanks
    JP1978
    • #2
    • 9th Sep 17, 10:48 AM
    • #2
    • 9th Sep 17, 10:48 AM
    I've just googled as I was intrigued as to the answer - and it appears as the first hit if you google voluntary termination excess mileage - http://forums.moneysavingexpert.com/showthread.php?t=5180860
    • ScotsMan2017
    • By ScotsMan2017 9th Sep 17, 10:54 AM
    • 9 Posts
    • 1 Thanks
    ScotsMan2017
    • #3
    • 9th Sep 17, 10:54 AM
    • #3
    • 9th Sep 17, 10:54 AM
    Yeh I have read most of the posts about it. But many do not mention how to deal with the debt collectors.

    As far as I am aware, I am not responsible for this debt or obligated to pay it. However, in don't know how to address the debt collectors to tell them that.
    • Mercdriver
    • By Mercdriver 9th Sep 17, 11:01 AM
    • 1,371 Posts
    • 911 Thanks
    Mercdriver
    • #4
    • 9th Sep 17, 11:01 AM
    • #4
    • 9th Sep 17, 11:01 AM
    Yeh I have read most of the posts about it. But many do not mention how to deal with the debt collectors.

    As far as I am aware, I am not responsible for this debt or obligated to pay it. However, in don't know how to address the debt collectors to tell them that.
    Originally posted by ScotsMan2017
    Have you taken it to the Financial Ombudsman Service?
    • ScotsMan2017
    • By ScotsMan2017 9th Sep 17, 11:05 AM
    • 9 Posts
    • 1 Thanks
    ScotsMan2017
    • #5
    • 9th Sep 17, 11:05 AM
    • #5
    • 9th Sep 17, 11:05 AM
    From what I have read the FOS do not help with a contract dispute. And they are unlikely to pay attention to the fact that the mileage charge is voided by the terms of VT.
    • Mercdriver
    • By Mercdriver 9th Sep 17, 11:08 AM
    • 1,371 Posts
    • 911 Thanks
    Mercdriver
    • #6
    • 9th Sep 17, 11:08 AM
    • #6
    • 9th Sep 17, 11:08 AM
    From what I have read the FOS do not help with a contract dispute. And they are unlikely to pay attention to the fact that the mileage charge is voided by the terms of VT.
    Originally posted by ScotsMan2017
    As I understand it from this forum, the FOS have ruled that the excess mileage is not enforceable, so I suspect they have helped before.

    Also what is to be lost by going to them? It's the finance house that has to pay their fee regardless of the outcome, not you.
    • ScotsMan2017
    • By ScotsMan2017 9th Sep 17, 11:14 AM
    • 9 Posts
    • 1 Thanks
    ScotsMan2017
    • #7
    • 9th Sep 17, 11:14 AM
    • #7
    • 9th Sep 17, 11:14 AM
    Ok, thanks I will call them today. Will let you know what they say.
    • Lucky Duck
    • By Lucky Duck 9th Sep 17, 6:02 PM
    • 49 Posts
    • 23 Thanks
    Lucky Duck
    • #8
    • 9th Sep 17, 6:02 PM
    • #8
    • 9th Sep 17, 6:02 PM
    Sadly the opposite is the case http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65660

    However the decision is not binding on the consumer and it is reported that this has not yet been tested in court.
    • Nodding Donkey
    • By Nodding Donkey 10th Sep 17, 9:06 AM
    • 2,436 Posts
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    Nodding Donkey
    • #9
    • 10th Sep 17, 9:06 AM
    • #9
    • 10th Sep 17, 9:06 AM
    There is one sure fire way to deal with debt collectors.

    Ignore them, they are powerless.
    • ScotsMan2017
    • By ScotsMan2017 10th Sep 17, 1:12 PM
    • 9 Posts
    • 1 Thanks
    ScotsMan2017
    I emailed them asking if they are able to settle contractual disputes.

    To me if the condition to VT is 50% and good condition then to be charged for mileage after goes against the nature of VT. If you are VTing because you can't afford the item anymore then to be thrown an additional charge on top puts you into more financial difficulty. And in my case I would have been as well maintaining monthly payments for a period.
    • wgl2014
    • By wgl2014 10th Sep 17, 2:07 PM
    • 274 Posts
    • 148 Thanks
    wgl2014
    How many miles are you over by?
    • Joe Horner
    • By Joe Horner 10th Sep 17, 2:33 PM
    • 4,094 Posts
    • 3,571 Thanks
    Joe Horner
    There is one sure fire way to deal with debt collectors.

    Ignore them, they are powerless.
    Originally posted by Nodding Donkey

    Not the best advice ever seeing as some DCAs will actually carry through with court action.

    Write to them (proper stamp & all, preferably recorded delivery) stating that the debt is disputed. If you do so within 30 days of their initial demand then they must stop enforcement until the debt is confirmed.

    Because only a court can give a binding decision on whether or not you owe the money, that effectively forces the finance company to file a claim and there are several good reasons why they might decide that's not worthwhile and choose to cancel the charges as a "goodwill" gesture.
    • Nodding Donkey
    • By Nodding Donkey 10th Sep 17, 2:55 PM
    • 2,436 Posts
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    Nodding Donkey
    Not the best advice ever seeing as some DCAs will actually carry through with court action.

    Write to them (proper stamp & all, preferably recorded delivery) stating that the debt is disputed. If you do so within 30 days of their initial demand then they must stop enforcement until the debt is confirmed.

    Because only a court can give a binding decision on whether or not you owe the money, that effectively forces the finance company to file a claim and there are several good reasons why they might decide that's not worthwhile and choose to cancel the charges as a "goodwill" gesture.
    Originally posted by Joe Horner
    They can't 'follow through'

    It's not their debt to take to court. Talking to them only encourages them to keep pestering you.
    • Quentin
    • By Quentin 10th Sep 17, 3:07 PM
    • 32,808 Posts
    • 16,840 Thanks
    Quentin
    Not the best advice ever seeing as some DCAs will actually carry through with court action.

    Write to them (proper stamp & all, preferably recorded delivery) stating that the debt is disputed. .....
    Originally posted by Joe Horner
    No.


    Ignore this poor advice.


    Debt collectors can safely be ignored. (And as already posted cannot take you to court - only the creditor can do that)


    Never engage with a debt collector - it just lets them know they have hooked you on their line and encourage them to continue their bullying tactics


    (And don't use recorded delivery (actually "signed for" service) for mail like this - the recipient can refuse to accept such an item and can then prove it was never delivered as the tracking will show it as undelivered. A waste of money too (costs an extra £1.10 - if you want to rove a letter was sent just get a free cert of posting from the post office- though DON'T write to debt collectors ever)
    • custardy
    • By custardy 10th Sep 17, 3:14 PM
    • 32,398 Posts
    • 27,163 Thanks
    custardy
    I would argue 'estimating' you would be over is unenforceable.
    you may have renegotiated/renewed or simply parked the car up.
    If its under the mileage as agreed then its under the mileage.
    Unless theirs a contract term regarding early surrender and future mileage?
    • Joe Horner
    • By Joe Horner 10th Sep 17, 3:19 PM
    • 4,094 Posts
    • 3,571 Thanks
    Joe Horner
    Some debt collectors buy the debt, and they can and will take court action to recover. We don't know if that's the case for the Op without seeing his paperwork so a blanket "ignore" is very poor advice.

    If they refuse delivery of a signed for (apologies for using the colloquial term before) letter then you'll know as soon as you check delivery online. If it doesn't show as delivered then you can follow it up and will have proof if it ever does go further that you attempted to engage and they refused. That's very useful should it become a matter for the FOS or the courts. So, no, there isn't a risk there.

    Assuming they haven't bought the debt then, by notifying them that it's disputed (you don't have to tell them why), you stop any enforcement action until the debt is verified. So the fact you've "confirmed" that you exist is neither here nor there.
    Last edited by Joe Horner; 10-09-2017 at 3:28 PM. Reason: half the post disappeared
    • Lucky Duck
    • By Lucky Duck 10th Sep 17, 3:48 PM
    • 49 Posts
    • 23 Thanks
    Lucky Duck
    I emailed them asking if they are able to settle contractual disputes.

    To me if the condition to VT is 50% and good condition then to be charged for mileage after goes against the nature of VT. If you are VTing because you can't afford the item anymore then to be thrown an additional charge on top puts you into more financial difficulty. And in my case I would have been as well maintaining monthly payments for a period.
    Originally posted by ScotsMan2017
    It's not a contractual dispute, at the point of VTing the contract falls away and this is why the consensus is that excess mileage charges are not recoverable
    • ScotsMan2017
    • By ScotsMan2017 11th Sep 17, 12:42 PM
    • 9 Posts
    • 1 Thanks
    ScotsMan2017
    I received this email from the finance company.

    "Thank you for your recent email.

    As advised by our client, your balance has been raised correctly in line with your agreement, even having voluntary terminated your agreement. If you remain dissatisfied with your balance, you will need to escalate this to the Financial Ombudsman Service within 6 months of your final complaint response issued by our client."
    • Nodding Donkey
    • By Nodding Donkey 11th Sep 17, 12:52 PM
    • 2,436 Posts
    • 2,054 Thanks
    Nodding Donkey
    The point is that ending the contract by VT is outside the contract and the conditions of a VT are overridden by legislation. The only way you can be liable for the charges is if you agree to it after the VT.

    As long as you didn't sign anything after telling them you wanted to VT you are safe. Which is why finance companies try it on with their 'VT Packs'

    When it comes to VT you need to stop listening to the finance company, of course they will say it is correct, they want your money


    ETA You didn't sign anything supplied by them after telling them you wanted to VT did you?
    Last edited by Nodding Donkey; 11-09-2017 at 1:03 PM.
    • Lucky Duck
    • By Lucky Duck 11th Sep 17, 12:59 PM
    • 49 Posts
    • 23 Thanks
    Lucky Duck
    Indeed, and I suspect all one can do is continue to deny the debt until it either becomes statute barred or they issue court proceedings
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