Finance agreement for a car

Kpros

Hi Guys,

Sorry if I have posted this in the wrong thread. I have tried hard to find a thread that covers this but struggled.

I had a car on HP with Vospers via RCI finance which came to and end this year. I decided to voluntarily terminate the agreement a month before the end as I wasn't using the car due to excess mileage. There was no damage on the car which was great so the only bill should have been for the excess mileage however the amount owed was worked out pro-rata and it worked out that the total bill was more than the exceeded mileage cost.

My question is about their lack of communication as I will document below:

I spoke with the finance company on the phone the day I received the invoice and stated that I disputed the amount. I was promised a call back from a team leader either the same day or the day after however I never received the call.

I then received a bog-standard letter from the finance company stating that the amount was outstanding and I had to pay it etc. I wrote a letter back stating that they had ignored my request of a call back, that I disputed the amount and that I was not prepared to settle the balance until I had spoken with a manager/team leader to confirm the total owed,. We are exactly a month on now from my reply letter and I have still heard nothing and I fear that I will just receive a further bog-standard letter from them expecting me to settle the amount without discussing it with me which seems unreasonable to me.

My question is do I have any rights? Is there some kind of time-period of which I can expect a response etc? I do not want any red letters as I have no debt and want to keep it that way but at the same time I am unimpressed with the way they are dealing with me.

Thanks for your help

[Deleted User]

Once you've raised a formal compliant, they have 8 weeks to respond - after that you could take it to FOS. However, that's not a route you would want to go down.

Give them a call and try to get it resolved. Be aware of missed payments being applied to your credit file.

Kpros

Hi zx81 thank you for the quick reply.

Would you recommend waiting 8 weeks or calling them prior to that as we are now 4 weeks since my letter,

How soon would this affect my credit score/file? I have never had any debt before and I am conscious of keeping it this way but at the same time do not want to pay out more than I deem to be fair.

Thanks

[Deleted User]

I would be calling them now.

If you get late markers, it will put a big dent in your credit history (scores are irrelevant) and make it difficult to get mainstream credit for a while.

If pushed, I would pay and then look to resolve it afterwards.

Kpros

Thank you for the advice. Can they impose 'late markers' even though its still in dispute? This would seem unfair.

Thanks

Nearlyold

Is the only extra charge for the excess mileage, if so how much are we talking about. I'm guessing you were on a PCP, if you were only a month away from the end of the agreement I can't see how a pro rata mileage adjustment would make much difference, if it was a 3 year PCP your mileage allowance would only be reduced by 1/36 or am I missing something?

Kpros

Hi,

Yes the extra charges are only for the excess mileage, the car was returned in immaculate condition and I even spent £80 for a professional valet which I regretted! I had done just under 5k miles over the limit which worked out to be £340 that I would have to pay them however they have billed me for nearly £600. I know its not a huge amount of money but every penny counts at the moment and I obviously do not wish to pay more than I owe. I did offer on the phone to make the payment of the exact mileage excess however they refused and said anything less than the full balance would not be accepted which was when I requested to speak with a manager (and am still waiting!).

I'm in a bit of a quandary. I certainly do not want any adversities on my credit rating but at the same time I do not want to pay a bill that I don't deem to be fair or I do not want to have to chase them when I have been very punctual with contacting them and responding to their letters. I will call and pay if necessary but I do not want to do this if I have substance to stay firm and try and get a fair conclusion.

Penelopa.Pitstop

It would be more useful if you post exact numbers, how many miles was the original contract for, how many miles car had on return, how many months of contract was left and what's the excess charge for miles.

If it was only 1 month left as you stated earlier, pro-rata excess miles wouldn't be that different from your calculation.

Kpros

Hi,

Exact numbers are:

36 month contract with a 60,000 mile limit of which I exceeded by exactly 4,866 miles which at 0.07p per mile totals to £340.62. I believe that there was one month left.

Do I wait until the 8 weeks or should I call them? As I said I don't want to almost remind them of their duty and I would have expected a response by now.

Thanks

BoGoF

Could part of the difference be VAT. Usually your contract date will specify an amount plus VAT.

Also, when exactly did your contract start?

molerat

Sounds about right ball park, pro rata mileage @ 7p depending on 35 or 36 months and if VAT is added. Surely they have given a breakdown as to how they have arrived at that figure ? If the sums are right the ombudsman route is likely pointless judging by their previous adjudications on the subject.