Vehicle leasing agreement...advice needed please!!

boredmarriedwithkids

Hopefully this is the correct forum for this!!

I'm currently in correspondence with a solicitors that are acting for a vehicle leasing company with whom I had a car but fell behind with payments.

This is as a result of being made redundant last year and the usual spiral of no job; lots of bills! I have acknowledged that this needs settling.

The car was returned in February by the leasing company collection agents on a date agreed via the solicitor with the expectation to be hit with an outstanding payments bill.

I get a letter from the solicitor stating that they are acting on behalf of the leasing company and that they require payment of £3614 pounds within 14 days or proceedings will be issued.

All communication after the letter is received is via email.

I request a full statement of account asking for a breakdown of the cost summary, this is then received showing a missed payments total of £2500 and 'misc admin charges' of £1100 = £3600

The summary does not show a credit of an interim payment of £520 pound made several months ago.

I reply with a query about this..to which there is a silence of about 3 weeks.

In the meantime I assume the credit of £520 against the missed payment total and send an email proposing a full and final settlement of £2100.

The response to my proposal is that the vehicle leasing company still want the full amount and that the £520 had been credited against an older invoice hence why it was not showing on the account summary and that no further 'unecessary correspondence' would be entered into

I guess my question is that can they ask for almost £1100 in admin costs, which on the summary appear purely arbitrary and also that I am attempting to settle this in good faith but I want to ensure that I pay for the correct amount not what is perceived.

The last email did state that they would expect payment proposals from me.

I'm still inclined to pay the full amount for the outstanding costs but not the 'misc admin cost' as this has not been fully quantified and as such from my experience is not justifiable!

Any advice would be very helpful.

Thanks

boredmarriedwithkids

Anyone????

housebuyer_abc

The costs probably are due - they will have been written down in your contract (or a statement to say you accept you will incur charges at the current rate)

The only thing you can do is negotiate these with them. Not paying them 'as they are not enforceable' will only lead you to court where you will see whether they were or not... unfortunatley at this point it's too late

Start talking to them (I know you've already tried - but keep at it)

standupguy

You are entitled to a full breakdown, line by line, of these misc costs and I am sure any judge would be asking them to prove the amount they are claiming.

You must get this breakdown and then compare what has been charged and for what - and then compare to any additional charges mentioned under the terms of your agreement.

Even if a charge is set out in your agreement you can still challenge if deemed unfair - eg £20 for a phone call etc

marmitedog

Get a breakdown statement.
The vehicle usually goes to auction upon return. Any difference between what it fetches and the value in the companies books (the net book value - NBV) will be charged to you. Its likely that the admin fee may include this figure. It may be referred to as TLOD on your breakdown (Total Loss on Disposal).