So i VT'd my car back in September. The story so far...
I dropped the car off at the dealership i collected my new car from. They collected the car without me being there several days after i collected my new one. I wasn't present at the time of collection, so signed nothing to state condition etc.
I did sign the form they emailed me previously stating i wish to VT and also paid a remainder to clear the 50%
Several weeks after the car was collected i received a letter / Invoice explaining i would need to pay additional costs:
1 Excess mileage charges approx £2100
2 Incomplete Service History approx £700
I called them immediately to dispute the service history issue. I explained that the paperwork was all there to correspond this and they said they will look into it. When they mentioned the excess mileage charge i explained i do not wish to discuss this as i was simply proving the service history was correct therefore the car was kept in "reasonable condition"
A week later an advisory from MBFS called me to explain that the Service History was checked and all cleared. I then mentioned that due to this regardless of the mileage charge, the car was now deemed as reasonable condition. 50% had been paid, therefore the situation was complete and no further action could be taken. I was chuffed to say the least.
nearly 3 months later i was sat at home and heard a voicemail left from Mercedes Benz requesting i call them. I felt no need as i was no longer in contract with them, i assumed it was survey calls etc so thought nothing of it. Until i recieved a letter explaining there were overdue funds outstanding, simply quoting an account number without stating any figures.
I again chose to ignore this as i had confirmed over the phone several months earlier everything was complete.
I then recieved an email, which i responded to explaining the situation briefly and asking them to review the situation and to then please stop bothering me.
I recieved an email back with a forwarded email stating that after the service history issue had been cleared there was still outstanding funds. They didnt comment on the call i explained where i had confirmed all was up to date.
I emailed again explaining the situation further, and also noted at this point the CCA 1974 sections 99 and 100 further clarifying that excess charges arent something i need to pay as i cleared 50% and gave the car back in reasonable condition.
I was then emailed again :
"When carrying out a voluntary termination you are still liable for charges such as Excess Mileage. Due to this, I am not able to remove your charge.
If you remain dissatisfied with your complaint response you will need to escalate this to the Financial Ombudsman Service for independent review"
I replied as follows:
"Good afternoon,
Thanks for the response. I have several questions I would like answering.
I feel this is bad practice. Could you explain why this happens frequently, as it did so in my case?
You expressed in your last email “When carrying out a voluntary termination you are still liable for charges such as Excess Mileage” Can you please highlight where I need to be looking to clarify this, As I cannot find anything in Law that states that point to me? In fact it is expressed that I am liable for no further charges, as long as I have paid 50% of the total, and kept the car in reasonable condition.
Shown below are sections of the Consumer Credit Act 1974 which cover this agreement:
Section 99 – (The right to terminate the agreement at any time)
(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.
(2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.
Section 100 – (Liability is restricted to 50%)
(1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.
(4) 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.
Section 173 – (Conflicting contractual terms are void and not enforceable)
(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.
(2) Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.
Due to having nothing mentioned on the cars condition report as unreasonable. The vehicle was then classified as reasonable condition. As 50% of the total was recovered. I was able to Voluntary Terminate according to the law as outlined above in sections 99 and 100 of the consumer credit act 1974.
Had there been further issues to dispute in regards to the mileage then why when I spoke with the advisor who explained all was now ok and the service history matter was resolved, would there be no further dealings and all is confirmed as being complete.
For you to start pursuing me again several months later is questionable. This is very contradictory and I would like to know why?
Please could you answer the 4 questions, clearly and concisely, using evidence to support, which I have set out clearly to you.
Sincerely"
I then didnt hear anything from them for several weeks until today which i received another response, explaining they have reviewed the situation, and are now again simply requesting that i take up this matter with the FOS.
At which point i have asked again that they answer my questions.
I feel this is going to go around in circles with them asking me to take this up with the FOS, and me requesting they answer my questions. Can someone advise me in regards to what to do at this point in time. I dont feel like i need to speak to the FOS as i feel they need to prove themselves to me rather than the other way around. I would happily ignore them as i feel this is in dispute they cant affect my credit rating?? but i feel it is on them to prove me wrong as opposed to the other way...
Any opinions or help appreciated!!
I dropped the car off at the dealership i collected my new car from. They collected the car without me being there several days after i collected my new one. I wasn't present at the time of collection, so signed nothing to state condition etc.
I did sign the form they emailed me previously stating i wish to VT and also paid a remainder to clear the 50%
Several weeks after the car was collected i received a letter / Invoice explaining i would need to pay additional costs:
1 Excess mileage charges approx £2100
2 Incomplete Service History approx £700
I called them immediately to dispute the service history issue. I explained that the paperwork was all there to correspond this and they said they will look into it. When they mentioned the excess mileage charge i explained i do not wish to discuss this as i was simply proving the service history was correct therefore the car was kept in "reasonable condition"
A week later an advisory from MBFS called me to explain that the Service History was checked and all cleared. I then mentioned that due to this regardless of the mileage charge, the car was now deemed as reasonable condition. 50% had been paid, therefore the situation was complete and no further action could be taken. I was chuffed to say the least.
nearly 3 months later i was sat at home and heard a voicemail left from Mercedes Benz requesting i call them. I felt no need as i was no longer in contract with them, i assumed it was survey calls etc so thought nothing of it. Until i recieved a letter explaining there were overdue funds outstanding, simply quoting an account number without stating any figures.
I again chose to ignore this as i had confirmed over the phone several months earlier everything was complete.
I then recieved an email, which i responded to explaining the situation briefly and asking them to review the situation and to then please stop bothering me.
I recieved an email back with a forwarded email stating that after the service history issue had been cleared there was still outstanding funds. They didnt comment on the call i explained where i had confirmed all was up to date.
I emailed again explaining the situation further, and also noted at this point the CCA 1974 sections 99 and 100 further clarifying that excess charges arent something i need to pay as i cleared 50% and gave the car back in reasonable condition.
I was then emailed again :
"When carrying out a voluntary termination you are still liable for charges such as Excess Mileage. Due to this, I am not able to remove your charge.
If you remain dissatisfied with your complaint response you will need to escalate this to the Financial Ombudsman Service for independent review"
I replied as follows:
"Good afternoon,
Thanks for the response. I have several questions I would like answering.
- When purchasing the vehicle, how come the salesman, explained to me that to get the car within my budget the mileage allowance could be lowered to accommodate the lesser price. They then told me that unless I keep the car until the end of the term this will not make a difference. If I voluntary terminate, It wouldn’t matter or If I traded in early. This is not something I have experienced at Mercedes but also with other manufacturers sales teams as well. It seems to be common knowledge and mentioned a lot from car sales teams. This shows to me that the training to given to sales teams may be misleading to encourage sales, which then turns out to be an issue come the end.
I feel this is bad practice. Could you explain why this happens frequently, as it did so in my case?
- The Consumer Credit Act 1974 states that, in regards to car finance and higher purchase agreements, that, by law, when voluntary terminating the vehicle, the debtor must have paid 50% of the total value, and kept the car in reasonable condition. There is then nothing further to pay if these conditions are met.
You expressed in your last email “When carrying out a voluntary termination you are still liable for charges such as Excess Mileage” Can you please highlight where I need to be looking to clarify this, As I cannot find anything in Law that states that point to me? In fact it is expressed that I am liable for no further charges, as long as I have paid 50% of the total, and kept the car in reasonable condition.
Shown below are sections of the Consumer Credit Act 1974 which cover this agreement:
Section 99 – (The right to terminate the agreement at any time)
(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.
(2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.
Section 100 – (Liability is restricted to 50%)
(1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.
(4) 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.
Section 173 – (Conflicting contractual terms are void and not enforceable)
(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.
(2) Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.
- I was told when I last spoke with the advisor in October who called me to let me know the service history had been recovered and was all up to date. That this was the end and no further action needed to take place. It was to my understanding that at this point it was proven that reasonable care was taken:
Due to having nothing mentioned on the cars condition report as unreasonable. The vehicle was then classified as reasonable condition. As 50% of the total was recovered. I was able to Voluntary Terminate according to the law as outlined above in sections 99 and 100 of the consumer credit act 1974.
Had there been further issues to dispute in regards to the mileage then why when I spoke with the advisor who explained all was now ok and the service history matter was resolved, would there be no further dealings and all is confirmed as being complete.
For you to start pursuing me again several months later is questionable. This is very contradictory and I would like to know why?
- I would like to ask if Mercedes Benz financial is at a loss, if the amount allegedly owed is not recovered?
Please could you answer the 4 questions, clearly and concisely, using evidence to support, which I have set out clearly to you.
Sincerely"
I then didnt hear anything from them for several weeks until today which i received another response, explaining they have reviewed the situation, and are now again simply requesting that i take up this matter with the FOS.
At which point i have asked again that they answer my questions.
I feel this is going to go around in circles with them asking me to take this up with the FOS, and me requesting they answer my questions. Can someone advise me in regards to what to do at this point in time. I dont feel like i need to speak to the FOS as i feel they need to prove themselves to me rather than the other way around. I would happily ignore them as i feel this is in dispute they cant affect my credit rating?? but i feel it is on them to prove me wrong as opposed to the other way...
Any opinions or help appreciated!!
Comment