Mercedes HP Voluntary Termination Problem

the_biochemist

Hi

I have been in contact with Mercedes to voluntarily terminate my HP on a car.

They have been fine and have sent me through a confirmation that I need to sign along with the details of any shortfall I have to pay under the Act (s.99 (1) of the Consumer Credit Act). So far so good.

This seemed fine until I read the confirmation statement they want me to sign...

which ends "I also understand that I will be liable for any damages or excess mileage charges after inspection of the vehicle"

The s100 of the Act defines the only liabilities for 50% of total value and any damages arising for not taking "reasonable care".

As such the confirmation statement they want me to sign would seem to create a new liability above and beyond that within the Act - a liability for excess mileage charges.

I am thinking of simply writing back to them a signed letter identical in content to theirs just excluding that line.

What do people think?

jonesMUFCforever

Excess mileage is part and parcel of any PCP or HP as is any reasonable damage or wear and tear.
IMO you don't have a get out clause here.
Why not get them to inspect the vehicle and see what the cost is?

verityboo

See this thread

https://forums.moneysavingexpert.com/discussion/5604150

Once yiou have told them you want to VT you don't need to sign anything else

Nearlyold

Many HP/PCP providers now include a clause in the finance agreement that defines fair wear and tear in a way that includes mileage. Fair wear and tear in the original legislation is not particularly precisely defined and of course was written before PCPs with their inbuilt limits were introduced.

FOS have certainly sided with lenders who have charged for excessive mileage on VTs.