VT Mercedes - Deb collectors got in touch for excess mileage

[pieterhartzer]

Hi,

I VT a Merceds in March. I got given 6 months to take the issue up with the ombudsman because they insisted that I pay. The six months expire in November. I received a letter from a debt collection agency insisting that I pay the excess mileage. I requested proof or the mileage and also the signed contract which gives me a month extra before they continue chasing me for the money (£139).

Please advise as to what my options are.

Regards,
Pieter

[Kati]

Re: VT Mercedes - Deb collectors got in touch for excess mileage

tagging [MENTION=71570]R0b[/MENTION] xx

[R0b]

Re: VT Mercedes - Deb collectors got in touch for excess mileage

Hi Pieter, who's the finance company? They can't charge you for excess mileage because as long as you VT'd you are limited to 50% of the total amount payable.

You could respond to them saying you do not owe it you terminated under s99 of the CCA and they have no right to chase you for it.

Keep an eye on your credit file in case they have reported a default as that is not allowed and just keep all of the letters and paperwork you send.

[pieterhartzer]

Re: VT Mercedes - Deb collectors got in touch for excess mileage

Hi Rob,

Thank you for getting back to me. The car was financed through Mercedes themselves. The contract specifies that if I VT I will be charged for excess mileage, which will be calculated on a pro-rata basis.

I responded to them in the past stating the s99 of the CCA but they replied with:

Dear Mr Hartzer,

Thank you for taking the time to raise your concerns with our De-Fleet department following the return of your vehicle.

I was disappointed to read you have been left feeling aggrieved by the end of contract charges raised. It is never our intention to cause any undue stress to our customers at any stage of their journey with us.

Whether you are returning your car at the end of your agreement or upon use of the Voluntary Termination (VT) clause, as you have not exercised your right to purchase the car, an excess mileage charge will be raised should your return mileage exceed your total mileage allowance. This obligation is set out within the first page of your agreement, under key information. The provisions of the Consumer Credit Act that cover a customer’s right to VT their agreement do permit us to include any over mileage when determining what is 'not reasonable' upon the cars return. It is stated in your agreement under ‘Excess Distance’; ‘If the vehicle is returned to us (whether at the end of the period hire or an earlier termination), we will calculate the total distance travelled by the vehicle whilst in your possession (the “Total Distance”)’.

Your mileage allowance has therefore been re-calculated on a pro-rata basis in line with the length of time you have had the vehicle in your possession. Please find below a breakdown of your excess mileage calculation for your reference:

Original Allowance: 40,000 (833 per month)
Term of agreement: 48
Terminated early by: 10 months
Revised allowance: 29,167 (833 x 38)
Collection miles: 31,654
Exceeded by: 2,232
Pence per mile: 9 pence plus VAT
Total: £138.89

I would also like to kindly refer you to S99 (2) Consumer Credit Act 1974 where it states:

‘Termination of an agreement under S (1) does not affect any liability under the agreement which has accrued before the termination.’

As your agreement was subject to a mileage allowance prior to termination and you have exceeded the allowance of 29,167 miles, the charge has been raised correctly and remains payable.

Whilst this may not be the response you had hoped for, I trust the above has provided you with the reassurance that I have fully investigated your concerns. Please also be assured that your complaint has been investigated in line with our obligation to treat our customers fairly.

Should you be at all unhappy with our handling of your complaint you have the right to refer your complaint to the Financial Ombudsman Service, free of charge – but you must do so within six months of the date of this response. If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances. The Ombudsman contact details are Exchange Tower, Harbour Exchange Square, London, E14 9SR Tel:- 0800 023 4 567 or 0300 123 9 123, website www.financial-ombudsman.org.uk.

They collected the car two weeks after I VTed.

Since then they've called me every two weeks and I simply stated that I have until November to take it up with the ombudsman. And now I have received the letter from a debt collection agency. I told them that I need proof of the mileage and the contract that I signed, seeing as I know the contract has mistakes in the vehicle's mileage. It states two different mileages on two different pages.

I checked my credit file and as of the end of July there is nothing, but I will check again the end of August.

Thanks again for the advice.

[pieterhartzer]

Re: VT Mercedes - Deb collectors got in touch for excess mileage

Hi Rob,

I need to write to the ombudsman regarding this matter. Do you have a sample letter that I could use for the ombudsman?

Kind regards,
Pieter