Mecedes finance VT & Excess mileage charges

[dcpenno]

I Sent my car back on VT and received a bill for excess mileage,

 

 

however it is not clear in my contract if I pay the charge as it says in termination your rights

if you have paid half the value of the agreement and the car condition is acceptable the answer is yes and yes.

I have heard that the phrase in termination my rights quote "you will have nothing else to pay".

 

Does anybody have dealings with this I have started proceedings with the Onbudsman but heard this is probably not the best way.

 

I have heard of people getting the charge removed and invoices being cancelled

 

Any help would be appreciated

[Conniff]

I assume we are talking Hire Purchase

 

Who is the finance company ?

[dcpenno]

Hi

 

 

Its PCP and with Mercedes Finance my view is that in 2 locations on VT section in contract say pay half value and return in good condition and I :you have nothing else to pay"

I believe that I have an older contract going off what Mercedes tell me? would like to compare with contract from 2012 August just to check.

[renegadeimp]

When you VT, you pay up to 50% and any arrears owing. Thats it.

[dcpenno]

Hi

Thanks is that in writing in any way as far as you know I need some back up as Merc are not moving. I will probably call Merc finance on Monday see if I can get some joy

 

 

Any back up would help

[renegadeimp]

https://www.moneyadviceservice.org.uk/en/articles/cut-your-car-finance-hire-purchase-and-other-finance-costs Edited June 11, 2016 by dx100uk
2nd link removed - dx

[dcpenno]

Thanks just going to look at the links back soon

[dx100uk]

Section 99 of the Consumer Credit Act gives the debtor the right to terminate a hire purchase agreement,

simply by giving written notice of termination.

.

The right to terminate applies at any time before the final payment becomes due, unless the creditor has already terminated.

.

contrary to the line taken by many finance companies,

.

the debtor need not have paid half the total amount payable,

.

and nor do they have to pay any arrears,

.

before exercising the right to terminate.

.

Sections 99 and 100 set out the debtor's liability on voluntary termination. The sections are complex,

.

but their main effect can be summarised in brief as follows.

.

.If the sum of payments made and arrears before termination exceeds 50% of the total price,

than the debtor is only liable to pay the arrears.

.

Otherwise, the debtor is liable to pay half the total price, less any payments already made.

.

so the debtor can terminate at any time if he has reached the 50 % mark

.

the debtor can terminate at any time before the 50 % mark but would be liable for payments still to reach the 50 % mark,

.

does not matter if the account is in arrears at the time or request to do a voluntary termination.

.

you need to specifically nail them down that this is a VT and NOT a VS [volutary surrender].

dont get caught out!!

take extensive photos of the car inside and out

and underneath and in the engine compartment ALWAYS.

if they try and charge a repo fee or collection fee they cannot:

173 Contracting-out forbidden.

(1)A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

This term is covered by the above section of the CCA 1974 in that it breaches this:

99 Right to terminate hire-purchase etc. agreements.

(1)At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement

In other words nothing can stop you voluntarily terminating.

The only charges you must pay are the ones contained in the legislation and itemised in section 101, the charge mentioned is levied after the agrement is terminated and is void in any case. All it means is that no one will collect the terminated car(their car), well that is ther problem it is no longer yours , you attachment to the car ha been terminated.

.

.

.

..............example letter..ADAPT TO SUIT.............

.

You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay anything.

.

The car has just to be in reasonable condition for its age.

If you have paid in excess of 50%,

with no arrears there will be nothing to pay.

.

Send them the following letter,

they MUST action your request,

you should endeavour to be present at the vehicle inspection---

.

VOLUNTARY TERMINATION OF AGREEMENT UNDER S99/100 CCA 1974

.

Account No: (xxxxxxx)

.

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement

under Section 99 of the consumer credit act1974.

.

You will understand that the aforementioned section permits the debtor to terminate the agreement

at any time before the last payment is due.

.

There is no restriction regarding the exercising this statutory right,

particularly none in respect of any perceived arrears or monies due on termination

.

I understand that I shall be liable to you for the amount calculated under the formula in Section 100

of the Consumer Credit Act 1974.

.

**As I have/have not paid more than the amount calculated under the formula in Section 100 the amount due is £XXXX/zero.

.

The above agreement will be terminated 14 days from the date of this notice.

.

Please send me details of how the vehicle can be returned to you.

.

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle;

guidelines also state that if you require me to deliver this vehicle

it must be no more than a short (reasonable distance) from my registered address.

.

Please confirm receipt of this request in writing within 7 days of receipt.

.

-Yours etc...

..

[dcpenno]

Im back links good but not clear will keep updating as and when any advice please pass on

[renegadeimp]

No better advice than what Dx put.

 

if you are under your mileage for the total year, then theyre just trying to get money from you.

 

Follow the VT advice and dont let them try and bluff money from you that theyre not entitled to.

[Conniff]

This is PCP so they can add financial penalties for excess mileage. That mileage would have had to be on the agreement you signed.

[dcpenno]

Hi

Added penalties excess mileage is on the agreement but in termination your rights it states

(if you have paid 50% and the car is returned in reasonable condition you will not have to pay anymore)

 

Also in termination by you it says which sections of the contract apply

 

these state that I have to have paid at least 50% of the agreement in 1 section

and the other section states

as long as the car is returned in reasonable condition that is all I would need to pay

and it refers to another section reasonable care,

this section does not mention mileage at all.

 

in section 12 last page last paragraph

 

smallest print that even on earlier surrender excess mileage would be due?

 

Help please as I have just received county court letter

 

Dave P

[theoldrouge]

Are you saying you have received

 

a court claim or just a threat of one

[theoldrouge]

Just for info ombudsman view

 

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=65660

[dcpenno]

its an actual court letter I have 14 days to answer

[dcpenno]

Ombudsman been there not very good they don't look into legality just the individuals view

[dx100uk]

you mean a claimform for monies

or a return of goods order please?

 

 

dx

[theoldrouge]

Ombudsman been there not very good they don't look into legality just the individuals view

 

Not recommending the ombudsman

but courts have been agreeing with his view of s100(4)cca1974

 

In order to help you we need information

 

Are you saying you have received a court claim for the excess mileage charges

 

If so name of claimant , date of issue and

 

POC please

[dcpenno]

Claimant Mercesdes benz financial services (UK) limited C90 3484621

 

Issue date 24-01-17

 

POC

1. by agreement in writing on 13-08-2012 the claimant agreed to hire a vehicle to the defendant for an agreed term in return for a monthly fee (the agreement)

 

the defendant has returned the vehicle to the claimant under the terms of the agreement

 

the defendant agreed to pay any costs and or charges associated with the vehicle damage, excess mileage and or rental.

these sums are now due and payable.

 

In my opinion my defence should be as follows

 

In the contract in termination your rights it states that as long as the vehicle is returned in reasonable condition QUOTE You will not have to pay anymore.

 

also in termination by you it states as long as you have paid 50% of the agreed sum and the car is returned in reasonable condition and section 10.1.4 this section only says vehicle condition and cost if not in good condition.

[theoldrouge]

Ok so register on mcol

 

Acknowledge Service

 

Tick Defend All

 

leave jurisdiction blank

 

You will then have 33 days inc the issue date

 

to submit your defence

 

Get a s79 request to the claimant anyway

 

 

 

What are the breakdown of the charges claimed?

[dx100uk]

it might be prudent to scan up their T&C's

to ONE PDF

[dx100uk]

pop up on the MCOL website detailed on the claimform.

.

register as an individual

note the long number given

then log in

.

select respond to a claim and select the AOS box.

.

then using the details required from the claimform

.

defend all

leave jurisdiction unticked.

click thru to the end

confirm and exit MCOL.

.

get a CCA Request running to the claimant

leave the £1PO blank and uncrossed

.

get a CPR 31:14 request running to the solicitors

.

don't sign anything

.

dx