Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

[Empty-space]

Hi All,

On the 13th of February I emailed and wrote to Mercedes Benz to terminate my vehicle. They confirmed receipt same day.

Dear Sir / Madam,

TERMINATION OF AGREEMENT PURSUANT TO S.99
OF THE CONSUMER CREDIT ACT 1974

Agreement number: xxx
Registration: xxx

I am writing to notify you that I wish to invoke my statutory right under section 99 of the Consumer Credit Act 1974 and hereby give you notice that the agreement is terminated effective immediately from the date of this letter. Please confirm by return acknowledgement of this letter and to make arrangements for collection of the vehicle.

The condition of the car is noted as being in a reasonable condition for its age and photographic evidence has been taken in the event of any future dispute as to the condition of the vehicle.

You will be aware that the Consumer Credit Act limits my liability to half of the total amount payable under the agreement but excludes any sum payable as a penalty, compensation or damages for a breach of the terms of the agreement. Such terms imposed are inconsistent with my rights under the Act and are therefore deemed void and unenforceable.

The vehicle is now available for collection and I would be grateful if you could contact me on xxx to arrange a suitable time within the next 14 days.

Yours faithfully,

xxx

On the 16th of February I called them to chase and they said that the vehicle could not be voluntary terminated until I signed the letter they had sent me (I never did receive said letter) After researching I sent the following email and letter which was acknowledged same day:

Dear Sir/Madam,

Re: Voluntary Termination

Agreement number: xxx
Registration: xxx

I am writing further to our conversation on the 16th of February 2017 at xxx, regarding the voluntary termination pack you have sent me.

I am under no obligation to sign any further documentation other than the collection inspection. I have fulfilled my obligations under the Consumer Credit Act 1974 and I consider our agreement to be terminated.
May I remind you that I wrote to you on the 13th of February 2017 confirming termination of the vehicle, allowing 14 days for you to collect the vehicle. Should you refuse to collect the vehicle after the 14 day period has expired, I shall therefore cancel the remaining tax and insurance and return the V5C document to the DVLA informing them that you are now the registered keeper of the vehicle, and any subsequent liability shall rest with you.

I would therefore urge you to arrange collection of the vehicle at the earliest opportunity to avoid any issues with the vehicle. Alternatively, I am happy to deliver the vehicle to a specific location provided that you confirm in writing to agree to pay all reasonable fees in doing so.



Yours faithfully,

xxx

No further correspondence was received from MBFS so I sent the following letter and email on the 21st of February which they acknowledged same day:

Dear Sir/Madam,

Re: Voluntary Termination

Agreement number: xxx
Registration: xxx

I am writing further to my letter dated 13 February 2017.

May I remind you that I wrote to you on 13 February 2017 confirming termination of the vehicle, allowing 14 days for you to collect the vehicle. I called you on the 16th of February and you confirmed receipt of the termination request.

You have not been in touch to arrange collection of the vehicle.


Should you refuse to collect the vehicle after the 14 day period has expired, I shall therefore cancel the remaining tax and insurance and return the V5C document to the DVLA informing them that you are now the registered keeper of the vehicle, and any subsequent liability shall rest with you. I will move the car to a public road and notify you of its whereabouts.

I would therefore urge you to arrange collection of the vehicle at the earliest opportunity to avoid any issues with the vehicle. Alternatively, I am happy to deliver the vehicle to a specific location provided that you confirm in writing to agree to pay all reasonable fees in doing so.

Yours faithfully,

xxx

I called them again on the 21st of February to chase and they confirmed that all of my letters and emails had been received but had not been actioned. They could not explain why. They confirmed over the phone that I had fulfilled my obligations under the "50% rule" and that I would hear from BCA to arrange collection of the vehicle by the end of the day. They did not call.

On the 22nd of February I waited for BCA to contact me. They did not call.

On the 23rd of February I called back MBFS and they put me through to BCA and said the earliest day that can collect my vehicle is March 7. The 14 day deadline expires on February 27.

So my questions are as follows:

1. The insurance for this vehicle expires on the 28th of February. Am I under any obligation to keep the vehicle insured prior to collection? What if it is stolen from my drive prior to collection?

2. Can I now SORN and get my tax refund?

3. After the 14 days have expired should I return the V5C to the DVLA confirming MBFS as the new owner, or should I comply and hand it to the collector on the 7th of March?

4. Should I sign the collection inspection? What if damage occurs between the 27th of February and the 7th of March while it's on my drive? Is it my responsibility to repair damages that happen during this period?

5. Should I remove the car from my property?

Thank you all for your help, I really appreciate it.

[R0b]

Re: Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

Hi All,

On the 13th of February I emailed and wrote to Mercedes Benz to terminate my vehicle. They confirmed receipt same day.



On the 16th of February I called them to chase and they said that the vehicle could not be voluntary terminated until I signed the letter they had sent me (I never did receive said letter) After researching I sent the following email and letter which was acknowledged same day:



No further correspondence was received from MBFS so I sent the following letter and email on the 21st of February which they acknowledged same day:



I called them again on the 21st of February to chase and they confirmed that all of my letters and emails had been received but had not been actioned. They could not explain why. They confirmed over the phone that I had fulfilled my obligations under the "50% rule" and that I would hear from BCA to arrange collection of the vehicle by the end of the day. They did not call.

On the 22nd of February I waited for BCA to contact me. They did not call.

On the 23rd of February I called back MBFS and they put me through to BCA and said the earliest day that can collect my vehicle is March 7. The 14 day deadline expires on February 27.

So my questions are as follows:

1. The insurance for this vehicle expires on the 28th of February. Am I under any obligation to keep the vehicle insured prior to collection? What if it is stolen from my drive prior to collection?

2. Can I now SORN and get my tax refund?

3. After the 14 days have expired should I return the V5C to the DVLA confirming MBFS as the new owner, or should I comply and hand it to the collector on the 7th of March?

4. Should I sign the collection inspection? What if damage occurs between the 27th of February and the 7th of March while it's on my drive? Is it my responsibility to repair damages that happen during this period?

5. Should I remove the car from my property?

Thank you all for your help, I really appreciate it.

Hello,

If the car is currently on your drive then you can SORN it until 7 March and cancel the insurance too (but read below before you do).

If you want you can notify the DVLA already because the ownership of the vehicle is MBFS and you no longer have permission to use it. You can inform the DVLA online at https://www.gov.uk/sold-bought-vehicle

In the eyes of the law, you are currently deemed an involuntary bailee (the possession of the car is now involuntary after a period of voluntary possession). Your obligations until the car is handed over is to ensure the car is not damaged deliberately or recklessly and those obligations don't diminish simply because MBFS has delayed in collecting the car. Note that your obligations is specifically deliberate or reckless damage, so if the car is damaged due to theft or some other reason outside of this scope, it is arguable that you could recover any monies spent in having the car repaired where it is reasonably foreseeable. If you are worried, you could take out short term insurance cover (or keep your current insurance) in case it does happen and try recover the cost back from MBFS but I would expect them to refuse repayment for the coverage, and then it is your choice as to whether you take further action or leave it - the question you have to ask is whether you want to take the risk or not. To reiterate, the obligation is to prevent deliberate or reckless damage only.

If you remove the car from your property and cancel the tax and insurance, it may be considered unreasonable if they have already given you a date for collection.

I would generally suggest not to sign the collection / condition report, unless you are 100% comfortable with the contents (and get a copy). The documents usually contain clauses that say you agree to pay all damages and/or losses upon further inspection. Also, you are not legally required to sign anything they provide.

[Empty-space]

Re: Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

Hello,

If the car is currently on your drive then you can SORN it until 7 March and cancel the insurance too (but read below before you do).

If you want you can notify the DVLA already because the ownership of the vehicle is MBFS and you no longer have permission to use it. You can inform the DVLA online at https://www.gov.uk/sold-bought-vehicle

In the eyes of the law, you are currently deemed an involuntary bailee (the possession of the car is now involuntary after a period of voluntary possession). Your obligations until the car is handed over is to ensure the car is not damaged deliberately or recklessly and those obligations don't diminish simply because MBFS has delayed in collecting the car. Note that your obligations is specifically deliberate or reckless damage, so if the car is damaged due to theft or some other reason outside of this scope, it is arguable that you could recover any monies spent in having the car repaired where it is reasonably foreseeable. If you are worried, you could take out short term insurance cover (or keep your current insurance) in case it does happen and try recover the cost back from MBFS but I would expect them to refuse repayment for the coverage, and then it is your choice as to whether you take further action or leave it - the question you have to ask is whether you want to take the risk or not. To reiterate, the obligation is to prevent deliberate or reckless damage only.

If you remove the car from your property and cancel the tax and insurance, it may be considered unreasonable if they have already given you a date for collection.

I would generally suggest not to sign the collection / condition report, unless you are 100% comfortable with the contents (and get a copy). The documents usually contain clauses that say you agree to pay all damages and/or losses upon further inspection. Also, you are not legally required to sign anything they provide.

Thank you r0b.

So to be clear, I should not sign the inspection report? Is it possible that they could refuse to remove the car if I do not sign?

Is there anything in law compelling me to sign the report?

[R0b]

Re: Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

It is up to you whether you want to sign it or not, but make sure you read the small print if any. Sometimes they ask you to sign on a PDA but it may not say anything and at a later date that signature will appear on another document you didn't agree to about costs.

You should do your own inspection, and take plenty of photos of the car both inside and out and any potential damage you think they may pick up on. If there is a dispute you can compare it to the photos you have taken.

There is nothing in the Consumer Credit Act which compels you to sign the lender's documentation. The documentation you sign will almost invariably be used against you to say you agreed to pay any damage of the vehicle what they deem beyond wear and tear.

The agent from BCA could refuse to collect the car if you don't sign anything but if they do, you could write immediately to MBFS, charging them daily storage rate e.g. £10 per day for their unreasonable conduct in refusing to collect the car without signing the documents. I would give them a further 7 days to re-collect the car or it would be removed from your drive and that you are not responsible for any losses suffered as a result.

Or you could sign the documents and go let them collect it, or you could write to them giving 28 days to collect the car or you will sell it yourself at auction, and transfer the proceeds less any expenses incurred (there's a specific way to do this so if you go down this route let me know and I'll direct you to a template).

As you can see there are a number of options, you have to weigh up what route you would like to take.

[Empty-space]

Re: Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

So an interesting development to my story. BCA ended up collecting the car today a bit earlier than expected, and they erroneously sent 2 inspectors.

The first inspector found no faults with vehicle, and handed me a report that he signed confirming no charges and that the vehicle is 'to standard'.

A minute or so after he left I was expecting the driver to turn up to take the vehicle away, but instead another BCA inspector arrived. He did not speak good English and could not understand how an inspector had already been. He proceeded to inspect the vehicle and handed me a report with an estimated £610 worth of charges. Of course I didn't sign anything. So it will be interesting to see how this plays out!

What a joke these inspections are. It is not acceptable that 1 inspector could deem a vehicle to be up to the required standard, and another finds £610 worth of charges.

[R0b]

Re: Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

Interesting, definitely worth keeping up your sleeve to see if MBFS try and claim those damages. I am curious as to what the second inspector considers as damage warranting the high amount of charges if the first inspector did no any charges.

There's always the argument that there is no need for more than one inspection to be carried out and in your case the first inspection should be the only one that was necessary and therefore you should not owe anything!

[jeffster247]

Re: Mercedes Benz Finance failed to collect VT car by Deadline - Implications?

I Vt'd with Mercedes about a year ago and had a similar inspection experience. On the day arranged an inspector arrived , took about 40 mins to do his inspection, put things such as locking wheel nut key, manuals etc in a bag that was then sealed and left on passenger seat and then asked me to sign that although there were minor issues , it was all within tolerance . This included a couple of scuffed alloys. But his report I signed said nothing to pay and he left me copy of the report

Later that day two guys turned up to collect the car and they also did an inspection . Their report was on a PDA that they asked me to sign and this also mentioned the alloy damage. However, ultimately I had nothing to pay and everything else went smoothly

I guess the first guy was just an inspector and the other two collection people , but they need a signature when collecting that agrees the condition at the point of collection.