Voluntary Termination - PCP

System

AdrianC wrote: »

Mileage simply isn't mentioned either way. So the question is one of whether covering substantially in excess of the contracted mileage is falls outside "taking reasonable care".

At least one Financial Ombudsman's ruling in favour of the finance company stated they regarded exceeding the annual mileage of not taking reasonable care.

Not paying the excess mileage charge is going to be one of those things you're going to have to decide to pay or be prepared to fight your case knowing there is no guarantee of a win, possibly in county court.

Nearlyold

Typical FOS responses here :- https://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=37655

https://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=66776

The Finance Companies write their agreements in such a way as to try and define that:-

Excess mileage should be considered in relation to and as part of a fair wear and tear assessment and
The Excess Mileage charge arises at the point at which the pro rata mileage allowance is exceeded (even though the customer is not asked to pay it at that point) thus because the charge arose before the termination of the agreement it becomes due at the point of termination as the law allows that charges that arise prior to the termination are still payable.

FOS appear to side with both arguments in cases I have seen - though this does not mean that a Court would rule the same.