PCP contract terminated by BMW

mush182182

Hi all,

On the 20th of December, I found out my agreement had been terminated by BMW, and vehicle repossession had been instructed to Engage. I only realised this as I had logged onto my online portal to locate a previous settlement figure, upon seeing there was no agreement, I then immediately made contact to BMW financial services. Initially the advisor I spoke to did not make it clear why this had happened, and made reference to missed payments in September 2022, which I quickly confirmed were inaccurate and payment had been made. I called back shortly after and then received more accurate information that this termination was down to a single missed payment in Feb 2020. I remember briefly speaking to someone after receiving a letter around this, and they explained it wasn't an issue and it would be added onto my settlement when it came to finish. I think what had happened was we changed our direct debit account details, and hence the february payment wasn't made. I have proof that there were cleared funds in the account on the requested date. Natwest have made it clear that they have no evidence of BMW requesting a direct debit from any of my accounts (see Q1)

I continued to receive letters around the single missed payment, however on the basis we had several phone conversations around this where I was advised there was no issue and all payments were being paid and received with no issues, I therefore assumed it was an administrative error.

We moved house in Feb 2022, didn't think to change address for BMW financial services as I never really needed postal communication with it all being online. Because of the change of address, I never received any form of default warning through the post.

The advisor also explained that email communications will have been sent out, but they were sent to an old email address that I lost access to (I have now regained access, and changed my primary email address with BMW financial services). I have since gone back through my old email addresses and I have proof that Royal Mail were unable to hand the default notice to me via post.

What I find extremely disappointing is that I have been in contact with BMW several times over the last few months (see Q2) as I was already looking to get a new BMW car more suited to my family situation, not at any point did any advisor make me aware of this action being taken against me despite providing me with two settlement quotes. The settlement quote did not make it obvious that the arrears on the account were at a stage of escalation. It just seemed to add to the balance, which was what I was originally advised back in February 2020.

I have spoken with several advisors to explain my situation, some have been kind and understanding, where others have placed immense pressure on myself to raise £10,200.00 within a matter of days.

I cannot understand how this action has been taken based on one missed payment dating back to Feb 2020. 

MorningcoffeeIV

A missed payment still not made up after 3 years was always going to a problem at some point.

Royal Mail aren't required to hand you the default notice. It just needed to be sent the address the lender has on file  

You cheapest route now will be to settle the debt.

mush182182

Thanks for your reply! Yes I understand that but I spoke to them a lot who said it would never be a problem and would be just added onto the final settlement quote.

The only way they will settle the debt is by either taking £10,200 off me in two weeks OR giving them my car to auction.

I'm just trying to buy some time whilst I find a new car.

SaverRate

Cant you get a loan to then pay off the BMW? Alternatively can you sell your car to the likes of motorway/We Buy Any Car/Evan Halshaw you then pay off the remaining balance on your finance and you receive the rest (if any?)

Grumpy_chap

mush182182 said:

Thanks for your reply! Yes I understand that but I spoke to them a lot who said it would never be a problem and would be just added onto the final settlement quote.

The only way they will settle the debt is by either taking £10,200 off me in two weeks OR giving them my car to auction.

I'm just trying to buy some time whilst I find a new car.

Will giving them the car to auction definitely bring this to a close?
What if the auction does not realise enough to settle the full balance £10k?  After any fees that are applied?
You are no longer in the rules of a PCP at the end of term, where the risk is with the manufacturer's finance.  This is now a default scenario - the fees could accumulate very rapidly.

Have you explored the options to pay the £10k and settle, or to sell to WBAC / Motorway / Arnold Clark / etc to settle?  At least that way, you know the amount before the car is gone and, if there is equity above the £10k, that stays in your pocket.

mush182182 said:

Hi all,

On the 20th of December, I found out my agreement had been terminated by BMW, and vehicle repossession had been instructed to Engage. I only realised this as I had logged onto my online portal to locate a previous settlement figure, upon seeing there was no agreement, I then immediately made contact to BMW financial services. Initially the advisor I spoke to did not make it clear why this had happened, and made reference to missed payments in September 2022, which I quickly confirmed were inaccurate and payment had been made. I called back shortly after and then received more accurate information that this termination was down to a single missed payment in Feb 2020. I remember briefly speaking to someone after receiving a letter around this, and they explained it wasn't an issue and it would be added onto my settlement when it came to finish. I think what had happened was we changed our direct debit account details, and hence the february payment wasn't made. I have proof that there were cleared funds in the account on the requested date. Natwest have made it clear that they have no evidence of BMW requesting a direct debit from any of my accounts (see Q1)

I continued to receive letters around the single missed payment, however on the basis we had several phone conversations around this where I was advised there was no issue and all payments were being paid and received with no issues, I therefore assumed it was an administrative error.

We moved house in Feb 2022, didn't think to change address for BMW financial services as I never really needed postal communication with it all being online. Because of the change of address, I never received any form of default warning through the post.

The advisor also explained that email communications will have been sent out, but they were sent to an old email address that I lost access to (I have now regained access, and changed my primary email address with BMW financial services). I have since gone back through my old email addresses and I have proof that Royal Mail were unable to hand the default notice to me via post.

What I find extremely disappointing is that I have been in contact with BMW several times over the last few months (see Q2) as I was already looking to get a new BMW car more suited to my family situation, not at any point did any advisor make me aware of this action being taken against me despite providing me with two settlement quotes. The settlement quote did not make it obvious that the arrears on the account were at a stage of escalation. It just seemed to add to the balance, which was what I was originally advised back in February 2020.

I have spoken with several advisors to explain my situation, some have been kind and understanding, where others have placed immense pressure on myself to raise £10,200.00 within a matter of days.

I cannot understand how this action has been taken based on one missed payment dating back to Feb 2020. 

MrFrugalFever

I would send an email to BMW Financial Services outlining your points above and seek permission/approval to sell the car to an authorised business (debt adjuster) such as WBAC.

Get everything in writing and then your case is almost likely to be watertight should it go to the ombudsman, unfortunately, although calls are recorded, they’re duly deleted in quite a short period of time.

I would check all 3 of your CRA’s as it sounds like you could be facing a default or at worst a CCJ (if more than a third of the total amount payable has been paid the finance company must seek permission through the courts for repossession).

phillw

mush182182 said:

Thanks for your reply! Yes I understand that but I spoke to them a lot who said it would never be a problem and would be just added onto the final settlement quote.

Have you explicitly said "I would like to make a complaint?"

Not changing the postal and email address is something you will have to take responsibility for, but if they said the missed payment wasn't a problem then you were acting on their advice. As you said, you had been in telephone contact.

Whether the ombudsman would side with you is another matter, BMW however won't know either.