Excess Mileage Charge - Reached Debt Collectors
Comments
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I'm guessing he paid up.0
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MaximumFish wrote: »I'm looking to VT my own car imminently and was under the impression there would be nothing further to pay,
If you have paid 50% or more of the amount due and return the car in reasonable condition then there is nothing further to pay.MaximumFish wrote: »As it is I'm within the overall mileage limit but over on a pro-rata basis and was hoping for a nice, smooth handover. :-/
If you are within the agreed mileage then the finance company's position is even weaker, it's none of their business whether you drive 1 mile in week one and 9999 miles in week 52 or vice versa. Regardless, if you VT then the law of the land is as clear as day... they have no legal right to charge you for excess mileage. They may huff and they may puff but they know full well they don't have a leg to stand on.
The only reason they keep pursuing people is that they know many people don't want the hassle and so will give in and pay at least something extra to them; as they're not entitled to a penny, anything you pay is pure profit and so it's worth their while to keep chasing.
As my own experience shows, robustly restate your position repeatedly early on and they quickly give up themselves once they realise you do actually know your legal rights.Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
MobileSaver wrote: »As my own experience shows, robustly restate your position repeatedly early on and they quickly give up themselves once they realise you do actually know your legal rights.
So you have successfully done this before? Did you use any template letters, or have copies of the letters you used?
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The FOS have ruled in at least one case it is enforceable.
http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65660
The reasoning on the ruling:
Section 100(4) of the Act merely says that reasonable care must have been taken of the
goods; I consider that in addition to damage beyond wear and tear, mileage limitation is also
a fair measure of what is !!!8216;reasonable care!!!8217; of a car. Therefore, it follows that I do not
consider excess mileage charges to be contrary to the Act0 -
Although, ultimately it's down to the courts to interpret and decide on the legislation, the opinion of one particular FOS employee would have little or no weight.The FOS have ruled in at least one case it is enforceable.
http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65660
The reasoning on the ruling:
Section 100(4) of the Act merely says that reasonable care must have been taken of the
goods; I consider that in addition to damage beyond wear and tear, mileage limitation is also
a fair measure of what is !!!8216;reasonable care!!!8217; of a car. Therefore, it follows that I do not
consider excess mileage charges to be contrary to the Act0 -
MaximumFish wrote: »So you have successfully done this before? Did you use any template letters, or have copies of the letters you used?
Yes, here's the letter I sent and I simply repeated my position a couple of times until they backed down and wrote off the additional charges as a "gesture of goodwill."
Dear Sir or Madam,
I am writing to notify you that I wish to invoke my statutory right under section 99 of the Consumer Credit Act 1974 as I have now paid one half of the total amount payable.
I hereby give you 14 days notice that the agreement is to be terminated on XXX. Please confirm by return acknowledging termination of the agreement and make arrangements for collection of the vehicle from MY ADDRESS.
The condition of the car is noted as being in a reasonable condition for its age. Photographic evidence will also be taken in the event of any future dispute by yourself as to the state of the vehicle.
You will be aware that the Consumer Credit Act prohibits you from levying charges for collection of the vehicle, excess mileage or any other charges that may be applied by you. Such terms are void as they are inconsistent with my rights under the Act where they directly or indirectly impose additional liability. For the avoidance of doubt I will not be signing or returning the form you sent me as this attempts to circumvent my statutory rights.
Love and kisses,
MobileSaverI consider that in addition to damage beyond wear and tear, mileage limitation is also
a fair measure of what is "reasonable care" of a car. Therefore, it follows that I do not consider excess mileage charges to be contrary to the Act
Perverse decisions like this will be why the ombudsman's decision is only binding on the finance company and not the consumer and indeed the ombudsman goes on to say:However, he does not have to accept my findings and may pursue this matter by alternative means, such as court, should he wish to do so.
As Neilmcl said, ultimately it is up to a court to interpret the law and to the best of my knowledge no court has ever agreed that excess mileage is chargeable when VTing. If they had then you would have expected all the finance companies to be quoting the relevant case at every opportunity...Every generation blames the one before...
Mike + The Mechanics - The Living Years0 -
Here are 2 recent examples of how this treated at court.MobileSaver wrote: »As Neilmcl said, ultimately it is up to a court to interpret the law and to the best of my knowledge no court has ever agreed that excess mileage is chargeable when VTing. If they had then you would have expected all the finance companies to be quoting the relevant case at every opportunity...
http://legalbeagles.info/forums/forum/money-debt/consumer-credit-act/99722-bmw-financial-services-voluntary-termination-excess-mileage/page2 - see post #26
http://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/page3 - post #42
As you'll see the outcome was quite different and therefore going to court is no guarantee of success, particularly if you're not sufficiently prepared.0 -
http://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/page3 - post #42
As you'll see the outcome was quite different and therefore going to court is no guarantee of success, particularly if you're not sufficiently prepared.
Good finds! The first judgement is clearly flawed in my opinion while the second succeeded in part using an argument that I've used myself; namely that excess mileage charges only become due at the point of termination, are not accrued prior to termination, and therefore you are not liable if you VT the agreement.
As with any legal argument the key is to always be prepared otherwise as the first judgement shows you can lose even when the law is on your side.Every generation blames the one before...
Mike + The Mechanics - The Living Years0
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