Voluntary termination of PCP and excess mileage charge

[TractorTerri]

I have read and re read lots of things on this forum but want to clarify a couple of things. I have just asked for VT of Peugeot which is just over two years into a three year agreement. I have paid the 50% but I have done 20'000 excess miles. The car is in excellent condition and has service history with no damage and brakes and tyres all checked as good condition. I get that under consumer act that I am not liable for excess mileage charges but peugeot stipulated this in their letter for VT. I have asked for copy of my initial agreement twice now and have still not received it. Any advice would be gratefully received..

[Wombats]

Re: Voluntary termination of PCP and excess mileage charge

I have read and re read lots of things on this forum but want to clarify a couple of things. I have just asked for VT of Peugeot which is just over two years into a three year agreement. I have paid the 50% but I have done 20'000 excess miles. The car is in excellent condition and has service history with no damage and brakes and tyres all checked as good condition. I get that under consumer act that I am not liable for excess mileage charges but peugeot stipulated this in their letter for VT. I have asked for copy of my initial agreement twice now and have still not received it. Any advice would be gratefully received..

Have you proof you have asked for a copy of your agreement? Was it sent recorded delivery or do you have proof of postage?

The mileage issue is always a sticky one, and at the end of the day is down to you and your resolve.

If you agreed 5K miles per yr, then 20K over would put it at 30K now. Average deemed to be 12-15K per year, so your total mileage would in that case be average. What annual mileage did you agree and what is the mileage now?

The issue then is whether any contractual clause in the agreement can override statute legislation. We would, of course, argue it cannot. They would argue it can. If they can't produce an agreement it's going to be very hard for them to state any specific mileage was agreed.

Make sure you get pictures when handing the car back with that days newspaper in them as proof of date, taken both inside and out, especially any potential defects. Common attempted charges are scratched wheels, crazy charges for stone chips etc... The CCA allows for fair wear and tear, so you should be able to walk away owing not one penny. As I said, it depends on your resolve.

Peugeot cannot stipulate anything in their letter for a VT. YOU are terminating the agreement, no them. Don't let them take the upper hand when this is a process where you are the one in control.

[TractorTerri]

Re: Voluntary termination of PCP and excess mileage charge

I have phoned so no proof with that. Returned the VT form by signed for delivery so proof of sending that. Have also emailed requesting copy of contract. Still no answer. Thanks for advice regarding newspaper. I had always planned to photograph but hadn't thought of date as thought it would be stored on phone in date order? I have been told verbally by Peugeot that I have 20'000 miles per year and have done 60'000 after 25 months so am about 20'000 over agreed amount. Would I be correct in saying that if they are unable to send me a signed copy of agreement that they cannot enforce the mileage charge??

[Wombats]

Re: Voluntary termination of PCP and excess mileage charge

If you have only asked for a copy of the agreement, you will need to write, formally requesting a copy under s77-79 of the CCA, and enclosing a postal order for £1.00. This will be why you haven't received a copy I think.

There will be a template letter on here, but I've got to dash as I've a doctor's appointment! Hopefully someone will post one up, or just Google 'request letter for copy of CCA agreement'.

[Kati]

Re: Voluntary termination of PCP and excess mileage charge

CCA request info :tinysmile_grin_t:

[Dmurray90]

Re: Voluntary termination of PCP and excess mileage charge

I was just wondering if there was any update in relation to this thread? I am having a similar problem myself having recently terminating a hire agreement. After some negotiations with the company RMS receivables i have agreed to pay £62 worth of damage charges to my old car and now they are pursuing me for £222 in excess mileage. My agreement was originally for 10,000 miles per annum and having terminated the agreement 6 months early on roughly 28,700 miles i have now been hit with these charges as the mileage is worked on a pro rata basis. I have initially argued that i am not willing to meet these charges as having terminated in accordance with S.100 CCA and returned it in reasonable condition the clause of the contract which provides for excess mileage is not permitted in accordance with S.173 CCA. Further to this having re read my contract i note that one of the initial terms is that if i have paid an initial amount and taken reasonable care of the goods i have fulfilled my contractual obligations (although the pro rate wording is within the attached terms and conditions). I await response from the company and at present i feel i have a strong enough case to argue at any potential hearing if the worst case scenario were to occur and they did pursue the charges that far. I was just wondering what you thought of my stance and prospects of success?

[Dmurray90]

Re: Voluntary termination of PCP and excess mileage charge

Pointers to any relevant case law would also be much appreciated.

[Wombats]

Re: Voluntary termination of PCP and excess mileage charge

Pointers to any relevant case law would also be much appreciated.

You won't find any I'm afraid. Read through the VT thread.

[Dmurray90]

Re: Voluntary termination of PCP and excess mileage charge

Ah, thought this was it, any thing relevant to my predicament on there?

[Wombats]

Re: Voluntary termination of PCP and excess mileage charge

It's pretty much as you say. Legislation states you can walk away owing nothing. Your contractual terms state you owe money. Does legislation take precidence over contractual terms? I would argue yes. Apparently it usually comes down to a battle of wills, and is often sorted out on the court house steps.

Of course it is not in the finance companies interest to have a case which sets legal precedence. Also, pursuing appeals etc... is not financially viable.

I think it will be your will power to beat them, or agree something sensible with them. You appear to be on top of the situation.

[Dmurray90]

Re: Voluntary termination of PCP and excess mileage charge

Ok, thanks for the input, it's very much appreciated

[MissFM]

Re: Voluntary termination of PCP and excess mileage charge

The thread you want:

http://www.legalbeagles.info/forums/...-the-CCA-1974&

and also post 12 on this thread (below):


http://www.legalbeagles.info/forums/...340#post488340

[TractorTerri]

Re: Voluntary termination of PCP and excess mileage charge

Have been hit with a £1251 bill so have drafted this letter to send. Any comments please??

I have now had an opportunity to read through the contents and would like to reply regarding the charges of £1251.74.I am aware that under the Consumer Credit Act 1974, which is a legislation protecting me as the consumer and that I have been entitled to voluntarily terminate my car agreement with Peugeot with the proviso that 50% or more has been paid. This 50% figure has been reached and with the exception of the paint damage charge of £150, the car has been returned in excellent order, with a full service history.I am not willing to meet the total mileage excess charges as having terminated in accordance with S.100 CCA and returned it in reasonable condition the clause of the contract which provides for excess mileage is not permitted in accordance with S.173 CCA. The decision to charge me the total excess mileage is unfair as this charge is then in excess of the 50% total payable figure. I also feel that the initial Peugeot contract is unfair as the need to voluntarily terminate was an unforeseen event and the contract does not allow for this.My final comment I would like to make is that, I understand from a legal perspective that ‘no one can override statutory law’ and that by attempting to levy the excess mileage charge is contravening this.

[Wombats]

Re: Voluntary termination of PCP and excess mileage charge

I'd write something like this:

Dear Sir,

Thank you for your dated dd/mm/2014, I acknowledge receipt and note its contents.

I terminated my agreement with you under section 99 of the Consumer Credit Act 1974. Section 100(4) states:


“If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.”

My vehicle was returned in accordance with this subsection, save for the paint damage, for which you have charged £150.00. I am, of course, happy to meet my obligation to pay this on production of a copy invoice for carrying out the work and receipt for payment of the work being completed.


All other charges are, I believe, not only unreasonable given I had fulfilled my obligation to take reasonable care of the vehicle, but unlawful, as nowhere in the legislation does it state further charges are allowed to be applied. Indeed, the vehicle was in excellent condition for its age, and had a full service history.

I do not believe the legislation entitles you to apply any charge for excess mileage. I would be grateful therefore if you could inform me on what legislation you rely in applying such charges, particularly bearing in Section 173 of the Act.

I look forward to confirmation that you are prepared to accept the £150.00 for paintwork damage, and that this payment will complete the Voluntary Termination process.


Yours faithfully,

[TractorTerri]

Re: Voluntary termination of PCP and excess mileage charge

Well after waiting nearly a month this is their response. Any advice please on how to respond now? I note that they have not made reference to my request for proof of repairs!!

"your contract makes provisions for an excess mileage charge. We refer you to the excess mileage details on page two of your agreement. The agreed annual mileage was 20'000 miles, a total of 60'000 mile full term. Any mileage in excess of this figure would be charged in accordance with your agreement at 5p per mile. We would also refer you to your terms and conditions specifically section 14.5 excess mileage charge. the basic mileage charge is the permitted mileage under the terms of the agreement calculated by multiplying the basic annual mileage shown in the mileage details section. section 100 subsection 4 of the CCA stipulates that if the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at subsection 2 shall be increased by the sum required to recompense the creditor for that contravention and subsection 2 shall have effect accordingly. This is further extended in section 101 subsection 2 whereby termination of an agreement under subsection 1 does not affect any liability under the agreement which has accrued during the period of said agreement and fall during the VT process is to be paid in excess or the 50% value.