Voluntary Termination - excess mileage and debt collector

neilmcl

prettywowers said:

neilmcl said:

prettywowers said:

Just looking for a bit of advice on this one:

Have VT'd my car due to no longer needing it. All has been arranged through the finance company, and I'm now waiting for the vehicle to be collected & inspected.

I've been told that any excess mileage charge would be passed immediately to a debt collector (!), and I will have no option to pay the finance company directly.

Can anyone advise if this is correct? I am aware that VT'ing a vehicle should mean no excess mileage charges are payable, but also that finance companies are playing hardball on this. I'd be quite happy to pay a few hundred quid to make them go away.

I've calculated that I'm around 6000miles over where I should be. 
 Surely, they need to establish if I'm going to pay the debt first, before passing it to a collector? 

Thanks for any help.

Told by whom?

In most cases you'll get a letter asking for payment from your finance provider. I've never heard it going straight to a debt collector first. After all it's not a debt until your finance provider tells you it is.

Told by the finance company. Spoke to them today as they weren't replying to emails.
They told me that collection and inspection not the vehicle would be arranged within 7 days, and that I would be billed for any excessive wear and tear. Any excess mileage charges would be passed to a debt collector. I questioned this at the time, but it was reiterated that their process was excess mileage went straight to their debt collector. For info, 10.9p per mile (Inc VAT).

As to whether they can legally claim excess mileage under a VT, some have had success in defending their position:

https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/97275-won-vt-excess-mileage-mbfs-county-court-claim-mortimer-clarke-pls-help

Ans some haven't. So up to you if you want to risk taking this to court or not.

neilmcl

prettywowers said:

The_Rainmaker said:

So you took out a PCP contract with a set number of miles per annum which you have exceeded  and now want to wriggle out of your contractual obligations?  Is that is it in a nutshell?

You could always advise the finance company of your excess mileage to avoid it going straight to the debt collectors.

Correct. I'm exercising my right as a consumer to end the agreement early as stipulated under the terms in the consumer credit act (that may or may not involve "wriggling").
Regardless, the finance company are not willing to enter into any discussion regarding payment for the excess mileage. 
I'm simply asking for advice, as other posters have also said, this is unusual as I am not being afforded the opportunity to simply pay the extra charges outstanding.

So are you willing to pay the excess mileage or not?

neilmcl

Scrapit said:

prettywowers said:

The_Rainmaker said:

So you took out a PCP contract with a set number of miles per annum which you have exceeded  and now want to wriggle out of your contractual obligations?  Is that is it in a nutshell?

You could always advise the finance company of your excess mileage to avoid it going straight to the debt collectors.

Correct. I'm exercising my right as a consumer to end the agreement early as stipulated under the terms in the consumer credit act (that may or may not involve "wriggling").
Regardless, the finance company are not willing to enter into any discussion regarding payment for the excess mileage. 
I'm simply asking for advice, as other posters have also said, this is unusual as I am not being afforded the opportunity to simply pay the extra charges outstanding.

So they won't let you pay the 6oo odd quid? That seems strange.

Does seem very strange to me. If there's excess mileage to pay and the OP is willing to pay it I can't see why the finance provider wouldn't accept the payment and instead pass it on as a debt.

Mercdriver

Call again and speak to a different advisor?

The_Rainmaker

neilmcl said:

Scrapit said:

prettywowers said:

The_Rainmaker said:

So you took out a PCP contract with a set number of miles per annum which you have exceeded  and now want to wriggle out of your contractual obligations?  Is that is it in a nutshell?

You could always advise the finance company of your excess mileage to avoid it going straight to the debt collectors.

Correct. I'm exercising my right as a consumer to end the agreement early as stipulated under the terms in the consumer credit act (that may or may not involve "wriggling").
Regardless, the finance company are not willing to enter into any discussion regarding payment for the excess mileage. 
I'm simply asking for advice, as other posters have also said, this is unusual as I am not being afforded the opportunity to simply pay the extra charges outstanding.

So they won't let you pay the 6oo odd quid? That seems strange.

Does seem very strange to me. If there's excess mileage to pay and the OP is willing to pay it I can't see why the finance provider wouldn't accept the payment and instead pass it on as a debt.

Because the Op hasn't (and doesn't want to) ask.

Would make things easier if they did and put it writing to avoid debt collectors fees if finance company gets cute.

MinuteNoodles

prettywowers said:

 Generally, one could argue that excess miles do not, in and of themselves, indicate excessive wear and tear. 

You've done more mileage than the agreement therefore the car has more wear and tear than it would had it been within the agreement mileage. It's not possible for it not to.

neilmcl

MinuteNoodles said:

prettywowers said:

 Generally, one could argue that excess miles do not, in and of themselves, indicate excessive wear and tear. 

You've done more mileage than the agreement therefore the car has more wear and tear than it would had it been within the agreement mileage. It's not possible for it not to.

The only obligation the client has, other than the 50% liability, is the obligation to take reasonable care of the goods. Excess mileage, in itself does not constitute having not taken reasonable care.

ToxicWomble

I would fully expect this “loophole” to be firmly closed in the near future - so make hay whilst the sun shines

AdrianC

neilmcl said:

MinuteNoodles said:

prettywowers said:

 Generally, one could argue that excess miles do not, in and of themselves, indicate excessive wear and tear. 

You've done more mileage than the agreement therefore the car has more wear and tear than it would had it been within the agreement mileage. It's not possible for it not to.

The only obligation the client has, other than the 50% liability, is the obligation to take reasonable care of the goods. Excess mileage, in itself does not constitute having not taken reasonable care.

If a precedent does get set that excess mileage is outwith the FW&T when VTing, then anybody and everybody will be able to sign up for a minimal-mileage PCP, cover waaaay in excess of the contracted mileage, then VT immediately before the term expires.

Clearly, that's a ridiculous and unsustainable situation, a charter for Michael-extraction that will only lead to PCPs being withdrawn completely... or everybody's prices going up to subsidise those abusing the legislation.

neilmcl

ToxicWomble said:

I would fully expect this “loophole” to be firmly closed in the near future - so make hay whilst the sun shines

I don't. The only way this "loophole", as you put it, disappears is if someone takes the issue to a higher court and a legal precedent gets set, or the law itself is changed but I don't see this happening any time soon, the Consumer Credit Act has been around since 1974.