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Hi,
I recently VT'd my Seat and when I received the invoice for the excess mileage I sent an email using the letter template #1 stating that i was not willing to pay for the excess mileage, this is the reply that I had from seat, I would appreciate some advice on whether I have a case or going to end up on court paying fees?
We note that you deny liability for the excess mileage charge under your hire purchase agreement.
You refer to section 100 of the Consumer Credit Act 1974 (the “Act”) but have failed to note that section 99 (2) explicitly states that “Termination of an agreement under subsection 1 [the right to terminate] does not affect any liability under the agreement which has accrued before the termination”.
You are correct in that excess mileage is a fundamental contractual term. You are asked to predict your mileage prior to entering into the contractual arrangement and the finance is calculated taking into account the depreciation of the vehicle based on the mileage you selected. This is clearly set out in your pre-contractual information, the front page of your agreement and clause 11 of your terms.
Clause 11 is worded as follows:-
11.1 If the Vehicle covers more than:
- the Maximum Annual Mileage in any succeeding period of 12 months starting from the making of this Agreement and/or
- the Maximum Total Mileage;
you will be liable to pay us the Excess Mileage Charge shown on page 1. That liability will accrue with each mile covered by the Vehicle in excess of those Mileages. You must discharge that liability be paying us on demand.
11.2 If you have paid Excess Mileage Charges in relation to the Maximum Annual Mileage we will deduct this amount from any Excess Mileage Charges payable in relation to the Maximum Total Mileage.
11.4 If this Agreement terminates early, we will reduce the Maximum Total Mileage in the proportion which the actual period of hire bears to the period of hire originally agreed. Any Excess Mileage Charge will be recalculated using that reduced Maximum Total Mileage.
Clause 11 is worded to ensure that liability for the excess mileage occurs prior to termination and therefore you remain fully liable for any excess mileage which is over and above that which you had originally selected. Our agreements are drafted by leading Counsel in consumer credit and therefore we are confident that they are not inconsistent with the Act.
Is this correct or are they just trying to scare me in to paying?
regards.
A
I recently VT'd my Seat and when I received the invoice for the excess mileage I sent an email using the letter template #1 stating that i was not willing to pay for the excess mileage, this is the reply that I had from seat, I would appreciate some advice on whether I have a case or going to end up on court paying fees?
We note that you deny liability for the excess mileage charge under your hire purchase agreement.
You refer to section 100 of the Consumer Credit Act 1974 (the “Act”) but have failed to note that section 99 (2) explicitly states that “Termination of an agreement under subsection 1 [the right to terminate] does not affect any liability under the agreement which has accrued before the termination”.
You are correct in that excess mileage is a fundamental contractual term. You are asked to predict your mileage prior to entering into the contractual arrangement and the finance is calculated taking into account the depreciation of the vehicle based on the mileage you selected. This is clearly set out in your pre-contractual information, the front page of your agreement and clause 11 of your terms.
Clause 11 is worded as follows:-
11.1 If the Vehicle covers more than:
- the Maximum Annual Mileage in any succeeding period of 12 months starting from the making of this Agreement and/or
- the Maximum Total Mileage;
you will be liable to pay us the Excess Mileage Charge shown on page 1. That liability will accrue with each mile covered by the Vehicle in excess of those Mileages. You must discharge that liability be paying us on demand.
11.2 If you have paid Excess Mileage Charges in relation to the Maximum Annual Mileage we will deduct this amount from any Excess Mileage Charges payable in relation to the Maximum Total Mileage.
11.4 If this Agreement terminates early, we will reduce the Maximum Total Mileage in the proportion which the actual period of hire bears to the period of hire originally agreed. Any Excess Mileage Charge will be recalculated using that reduced Maximum Total Mileage.
Clause 11 is worded to ensure that liability for the excess mileage occurs prior to termination and therefore you remain fully liable for any excess mileage which is over and above that which you had originally selected. Our agreements are drafted by leading Counsel in consumer credit and therefore we are confident that they are not inconsistent with the Act.
Is this correct or are they just trying to scare me in to paying?
regards.
A
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