Voluntary termination charges - can I fight them?

misspig

I voluntary terminated hp on my car this year. I had paid 2 thirds of it. After it was collected I received charges for not having a service in last year, a missing key and 2 scratches. I contacted them immediately as the car had been serviced only 6 months before but they advised they couldn't return log book and it did not evidence this. The next day I was contacted by a debt collection agency who have taken on the amount outstanding.
I wrote a letter advising that I would not pay the exaggerated costs they had given for log book not being up to date and missing key, as they had failed to advise me that I should have these before collecting the car. If they had told me this I would have had sorted this myself beforehand. I also asked them to send me evidence that the scratches had been repaired before car went to auction 2 days later. (I have a friend who works in auctions who told me older vt cars like mine never get any work done to them before being auctioned)
Basically the debt collection company answered by saying it wasn't the finance company responsibility to advise me before collection of the car to have it serviced or have 2 keys and they don't have to send me proof the car scratches were repaired, so I still have to pay for all charges.
I'd just like any advice on whether I should continue to contest this?
I really can't afford to pay it and I'm worried the debt people will start adding more charges the longer I continue to contest it (which they've said will happen)

~Brock~

Your obligation under a HP agreement is to take 'reasonable' care of the goods.

In the case of cars, this is generally accepted to mean keeping the car in a condition reasonable for its age and mileage, roadworthy and in good cosmetic and mechanical condition. The finance company is entitled to be compensated for your failure to do this as this would lead to them receiving a lower than expected resale price.

If you only had one key from the start of the agreement then you couldn't be expected to supply two at the end. As for scratches - if you knew they were there and they happened whilst the car was in your care, and they are not just small stonechips, then it is not unreasonable that you should cover the cost of having these repaired, although these costs should not be inflated.

I disagree that not having the service book stamped amounts to not taking reasonable care - and would simply obtain a copy of the service receipt that you had done 6 months ago as proof that you were taking care.

I don't really see the point in fighting the principle of these charges because they are not illegal (Check out Section 100(4) of the Consumer Credit Act 1974), but you can and should ensure that they are not inflated over and above what would be considered reasonable.

misspig

Thanks Brock. I did ask them to check the paperwork with the car immediately after it was collected as I was positive the service sheet was with it, but they said they couldn't do this. The garage where all my service work was done has closed down so I can't get a copy. They are charging £200 for this even though the car has a FSH up until this year and I am positive this years service sheet was with the car. I also contacted the dealership where I got the car (with one key and another supposedly to follow but never did) and they said they wouldn't have a record of it that far back. aaahh...its all going wrong.

Rafter

Misspig,

Car finance companies have worked out that if they make on average say £500 profit from leasing a car, by charging £250 extra with these kind of charges they can increase their profits by 50%!

Keep everything in writing, be very clear that you never had two keys, that the car was serviced and the service sheet was in the vehicle when it was handed back and offer say £100 for repair of the scratches (which is what a scratch repair company would charge).

If they really want to take you to court for any more they would be stupid!

R.

misspig

Thanks Rafter. I think they are just trying to make what extra they can from it. They said if I paid £200 for log book and £120 for key they would discount what I owe for scratches by 20% but only if I paid straight away rather than contesting the log book and keys issue!
Its really annoying as mechanically I took good care of the car. At the time it was serviced this year I had various other bits and bobs done to it all of which I put paperwork in the car, but I feel theyve only looked at log book and not other paperwork which would have included the service. The key is my fault I guess for never chasing it up. I also had it fully valeted so apart from 2 small scratches it was fine for an 8 yr old car.

Rafter

8 years old! They are really pushing their luck then.

I think people would expect a couple of scratches on a car that old and unless it was a sports car/ merc or something, the amount of repairs and stuff they are asking for would make very little difference to the resale value.

As brock says - your obligation is to take 'reasonable care' of the goods - which you have obviously done.

Make a low offer for the scratches - blame the key and logbook issue on the garages (regardless that they are no longer trading). Remember whoever you speak to at the collections company will be being paid a bonus depending on how much you cough up - hold your ground!

R.