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Hi there..
I've been having issues with Mercedes Finance since I volunatrily terminated my agreement in August, it seems to be a common thing and think it's time I asked this board for support.
They initally sent the standard "Volunatry Termination Documents" for me to sign, which I refused to do via email. Collection was smooth and damage report was clear (BCA arrived as I was taking the detailed photographs, so they knew there was evidence).
I then received a letter asking for excess mileage charges of £1293.30, calculated at a pro-rata rate, which the contract doesn't mention they can do. It was calculated for a contract of 10,000 miles, however on agreeing the contract at purchase, I requested 12,000 (the dealer denies all knowledge of this and MB Finance don't seem to care about, so will be a separate matter)
They sent me a copy of the contract, which is an awful faxed copy from the dealer, where most of the terms are unreadble, it unfortunately states 10,000 miles. The "Termination: Your Rights" section is clear as day though.
I requested another copy but am yet to receive it, though I expect it will be the same one.
I used the template on the forums to deny the excess mileage charges but recieved the following response today:
My main queries are..
Is any of what they're claiming correct, particularly them associating mileage as a negative affect and the pro-rata calculation? (I suspect not)
Can I do anything about being given a 10,000 mile contract after requesting a 12,000 one (I have witnesses from the day)?
Are there any rules around them keeping illegible copies of contracts and then using them as "evidence"?
Has anyone had any experience of how far they are willing to pursue charges?
Any assistance would be much appreciated.
I've been having issues with Mercedes Finance since I volunatrily terminated my agreement in August, it seems to be a common thing and think it's time I asked this board for support.
They initally sent the standard "Volunatry Termination Documents" for me to sign, which I refused to do via email. Collection was smooth and damage report was clear (BCA arrived as I was taking the detailed photographs, so they knew there was evidence).
I then received a letter asking for excess mileage charges of £1293.30, calculated at a pro-rata rate, which the contract doesn't mention they can do. It was calculated for a contract of 10,000 miles, however on agreeing the contract at purchase, I requested 12,000 (the dealer denies all knowledge of this and MB Finance don't seem to care about, so will be a separate matter)
They sent me a copy of the contract, which is an awful faxed copy from the dealer, where most of the terms are unreadble, it unfortunately states 10,000 miles. The "Termination: Your Rights" section is clear as day though.
I requested another copy but am yet to receive it, though I expect it will be the same one.
I used the template on the forums to deny the excess mileage charges but recieved the following response today:
Thank you for your recent email to our De-Fleet department.
The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative effect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement.
Your annual mileage allowance is calculated on the condition that all monthly finance payments are made. Should you Voluntarily Terminate your agreement, you have not made the necessary number of payments to entitle you to the total annual mileage allowance. Your mileage allowance has therefore been recalculated to reflect the total number of months you had the vehicle in your possession and the number of monthly finance payments received. Ultimately, you have not made the necessary number of finance payments to entitle you to 40,000 miles and, as you have exceeded the revised mileage allowance, the charge has been raised correctly to reflect this.
Should you remain unhappy with the complaint response you may 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 the complaint 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
Should you have any further queries, please do not hesitate to contact one of our advisors on 0370 240 1110. Calls to our numbers starting 03 will cost no more than calling 01 and 02 numbers.
The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative effect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement.
Your annual mileage allowance is calculated on the condition that all monthly finance payments are made. Should you Voluntarily Terminate your agreement, you have not made the necessary number of payments to entitle you to the total annual mileage allowance. Your mileage allowance has therefore been recalculated to reflect the total number of months you had the vehicle in your possession and the number of monthly finance payments received. Ultimately, you have not made the necessary number of finance payments to entitle you to 40,000 miles and, as you have exceeded the revised mileage allowance, the charge has been raised correctly to reflect this.
Should you remain unhappy with the complaint response you may 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 the complaint 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
Should you have any further queries, please do not hesitate to contact one of our advisors on 0370 240 1110. Calls to our numbers starting 03 will cost no more than calling 01 and 02 numbers.
Is any of what they're claiming correct, particularly them associating mileage as a negative affect and the pro-rata calculation? (I suspect not)
Can I do anything about being given a 10,000 mile contract after requesting a 12,000 one (I have witnesses from the day)?
Are there any rules around them keeping illegible copies of contracts and then using them as "evidence"?
Has anyone had any experience of how far they are willing to pursue charges?
Any assistance would be much appreciated.
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