RCI - so can i end early?

ben_m_g

SmellyPetrol wrote: »

The Car Expert states you don't have to pay mileage charges.

Little downloadable guide for you
here too

But as others had said - maybe there is a clause in your contract mate.
Let us know the outcome.

The interesting part is that the contract cannot override statute (the CCA). If the act states that there is nothing further to pay then you cannot be legally held to this, no matter the contract.

However, what most people are quoting is a term that I cannot find, about "no further amount to pay".

without any further documentation to go on, I think my next step will be speaking with Renault and hopefully get a straight answer.

molerat

I think 2 different things are being discussed here.

Once the 50% point is reached you have the right under the CCA to return the goods without paying any extra charges and fees to enable the return of the goods.

Once the vehicle is returned the lender has the right to charge for any breaches of the contract or contractual charges such as excess mileage or damage. These become a separate debt and do not have to be paid before the goods are returned.

You can not, for instance, pay the 50% and then crush the car into a cube and return it without expecting to pay for the damage.

smitchy73

ben_m_g wrote: »

The interesting part is that the contract cannot override statute (the CCA). If the act states that there is nothing further to pay then you cannot be legally held to this, no matter the contract.

However, what most people are quoting is a term that I cannot find, about "no further amount to pay".

without any further documentation to go on, I think my next step will be speaking with Renault and hopefully get a straight answer.

The no further amount should be in a box on your credit agreement which should be highlighted "Termination: Your Rights"
Don't speak to the dealer they'll tell you anything, phone RCI's VT Team on 0844 482 2173, Option 2 and speak to them. Or if you're sure a Voluntary Termination is what you want then just send them a letter, templates I think are on the Car Expert links in posts above and just use that, and send Recorded or Special Delivery to their address and address to their VT Team, they will arrange. They also can't charge you for collection or should offer you a drop off point close to home(this is probably roughly 50 miles considered fair), make sure you look after any bumps, scratches, scrapes, anything missing - spare keys, service stamps etc, take care of it all before handing back, this gives them less things to come back and try and charge you for.

Section 99 Link - http://www.legislation.gov.uk/ukpga/1974/39/section/99
Section 100 Link - http://www.legislation.gov.uk/ukpga/1974/39/section/100

smitchy73

molerat wrote: »

I think 2 different things are being discussed here.

Once the 50% point is reached you have the right under the CCA to return the goods without paying any extra charges and fees to enable the return of the goods.

Once the vehicle is returned the lender has the right to charge for any breaches of the contract or contractual charges such as excess mileage or damage. These become a separate debt and do not have to be paid before the goods are returned.

You can not, for instance, pay the 50% and then crush the car into a cube and return it without expecting to pay for the damage.

To be fair the 50% point doesn't have to be reached you are just liable to pay UP TO the 50% mark, you don't have to have passed it to arrange a VT.

As per other posts the excess mileage is part of the terms of the t's and c's but the Statute of the CCA 1974 overwrites this, hence why people can still take advantage(rightly or wrongly - which is a different argument) of this loophole in the law, plus it can also be argued that it is Unfair Terms and Condition imposed also, as for example if you sign up to 10k miles per annum and pay £150pm and excess mileage is charged at 10p per mile, assuming you done 5000 excess miles you'd be charged £500, however, as this is how the excess mileage has devalued the car, however, if you do 5000 miles less you don't get £500 back, and i'm darned sure the car isn't worth £500 more because of the 5000 less miles. This can be argued under another act which I can't remember.

ben_m_g

smitchy73 wrote: »

The no further amount should be in a box on your credit agreement which should be highlighted "Termination: Your Rights"
Don't speak to the dealer they'll tell you anything, phone RCI's VT Team on 0844 482 2173, Option 2 and speak to them. Or if you're sure a Voluntary Termination is what you want then just send them a letter, templates I think are on the Car Expert links in posts above and just use that, and send Recorded or Special Delivery to their address and address to their VT Team, they will arrange. They also can't charge you for collection or should offer you a drop off point close to home(this is probably roughly 50 miles considered fair), make sure you look after any bumps, scratches, scrapes, anything missing - spare keys, service stamps etc, take care of it all before handing back, this gives them less things to come back and try and charge you for.

Section 99 Link - http://www.legislation.gov.uk/ukpga/1974/39/section/99
Section 100 Link - http://www.legislation.gov.uk/ukpga/1974/39/section/100

A little update for you guys.

I finally found my finance paperwork, and yes on the termination description it states (as the sales guy told me initially) there would be no further to pay (under a VT).

I will be talking to the VT team, and post any updates.

Thank you to all that have given help.

motorguy

Hintza wrote: »

This comes up every now and again and I can not understand why xxxxmiles/annum is not or can not be enforceable in the contract.

It is hardly an unfair term.

Because you are exercising your right under the Consumer Credit Act to terminate the contract with nothing further to pay.

Its designed to protect consumers from finance companies who might take advantage of people change in circumstances to pile on charges or pursue them for the remaining payments.

Where you might fall foul would be if you racked up say 80,000 in two years, the finance company could then argue "unreasonable wear and tear", but if you're a few K over then they cant enforce it.

motorguy

almillar wrote: »

It's part of a contract, so is surely enforceable.
Do you think you were misled or just misunderstood?

I think its you thats misunderstood.

The VT ability is a right under the Consumer Credit Act, not a contractual obligation

motorguy

AdrianC wrote: »

If you're on a 10,000mile pa contract, and you've done 25,000 miles after two years, why would you NOT be charged extra for those extra 5,000 miles?

Because hes not legally obliged to do so if he VTs.