Is it normal to be charged a collection fee when cancelling a lease within the 14-day cooling-off pe

ssa007

Hi everyone,

I’m hoping to get some advice or hear from anyone who’s been in a similar situation.

I recently signed up to lease a car through LeaseCar UK, which was being financed through ARVAL. When the car was delivered, it had a number of scratches on the bodywork, and as soon as I started it up, a maintenance light came on. I pointed the scratches out to the delivery driver, and he took photos to note it on their system.

I didn’t drive the car at all. Later that same afternoon, I phoned LeaseCar UK to report the issues and told them I wanted to cancel under the 14-day cooling-off period. They told me the lease could be cancelled, but I would need to pay a £200 + VAT collection fee.

I’ve gone back through the contract (the one issued by ARVAL), and I can’t find anything that mentions a collection charge for returning the vehicle within the cooling-off period. Because of that, I’m unsure whether this is standard practice or if I’m being charged something that shouldn’t apply.

So my question is:

Has anyone here cancelled a lease within the 14-day cooling-off period—either with LeaseCar UK, or any other leasing company?
If so, were you charged a collection fee, or was the return arranged without cost?

Any experiences or advice would be really appreciated.

Thanks!

paul_c123

Cancellation and rejection are different. You want to reject it.

ssa007

paul_c123 said:

Cancellation and rejection are different. You want to reject it.

Thanks so much for your response — I really appreciate the advice.

As soon as the car was delivered, I contacted the leasing company straight away to explain the issues with the scratches. In my email, I also stated that I wished to cancel the lease agreement, mentioning that this was due to the vehicle being rejected immediately because of its delivery condition.

Unfortunately, due to the situation and some pressure from the leasing company, I ended up paying the collection fee of £200 + VAT (£240).

As this is my first time leasing a vehicle, I’m still trying to properly understand my rights and what should happen in a situation like this.

Any guidance or clarification would be greatly appreciated.

sammyjammy

I'm not sure why you think they should come and collect it for free.

Mildly_Miffed

I presume this was a used car you were leasing.

Were the scratches not visible when you viewed it prior to agreeing the deal?
What was stated about the service history?

Neither some minor cosmetic flaw or a service being due is grounds for rejection, so you're relying on the finance cooling-off to unwind the deal. And, as said, why should they come and collect for free because you've changed your mind?

ssa007

sammyjammy said:

I'm not sure why you think they should come and collect it for free.

Thats exactly what I am trying to gather from members who may have been in a similar situation. As I say, I am a first time leaser.  

ssa007

Mildly_Miffed said:

I presume this was a used car you were leasing.

Were the scratches not visible when you viewed it prior to agreeing the deal?
What was stated about the service history?

Neither some minor cosmetic flaw or a service being due is grounds for rejection, so you're relying on the finance cooling-off to unwind the deal. And, as said, why should they come and collect for free because you've changed your mind?

Thanks for your response — really appreciate you taking the time to explain things.

This was actually a brand-new lease car, so I didn’t view it in person beforehand. It was delivered straight to my home, which I understand is pretty normal when leasing online for the first time. The scratches were only visible on delivery, and the delivery driver took photos and agreed they would go on file. So I reported all of this to the leasing company the same day.

I completely understand what you’re saying about minor cosmetic issues not automatically qualifying as rejection, and that’s why I relied on the cooling-off period. My question is really about whether it’s normal or fair for a leasing company to charge a £200 + VAT collection fee when this fee isn’t mentioned anywhere in the contract or pre-contract information.

As a first-time leaser, I just expected any potential charges connected to cancellation to be clearly disclosed upfront or written into the agreement. I wasn’t trying to avoid reasonable costs — I just didn’t understand how a fee can be applied if it’s not stated anywhere.

That’s really the part I’m trying to get clarity on. Any insight from people who have cancelled early or dealt with similar situations would be very helpful. Thank you again.

paul_c123

For an as-new car, it could be rejected for scratches. You can reject up to 30 days from delivery.

It does seem (since you've used the wording many time) you cancelled it, not rejected, though.

Ectophile

They shouldn't just impose arbitray charges on you that aren't in the contract.  There isn't any "standard".  Just your consumer rights and the contract you agreed to.

If it's a regulated credit agreement, it costs you nothing to lodge a formal complaint with them.