Raymondo v BMW Finance

[R0b]

Document and keep all correspondence such as this because you can rely on it as evidence in your claim which might make it hard for BMW to prove otherwise. For example, they continue to claim that excess mileage is a contractual charge yet despite the CCA explaining that such charges are not recoverable when you VT. It just goes to show how silly they would look trying to arguing that point if it went to court.

You have no obligation to go to the Financial Ombudsman although a court might ask why you didn't attempt that before issuing a claim, your answer could very based on the simple fact that the issue at hand requires an interpretation of the law and which the Courts are best equipped to deal with, not the Financial Ombudsman who only looks at what is fair and reasonable in all the circumstances.

[Raymondo]

Hi R0b

ive had 2 replies in a few days from BMW today’s most recent one was a letter (please see attached) requesting payment and informing me late payment fees and interest will be added after 7 days if it’s not paid. Also after 7 days if payment is not made the debt will be handed over to a debt collection agency.

is this an idle threat or can they actually add late payment and interest to the fee and can they hand it over to a collection agency?

i haven’t been informed of fees or percentage that will be added on and haven’t signed to agree to such fees.

[Raymondo]

The other reply I had was informing me further about how I do owe the excess mileage fees and I can take it to the financial ombudsman. They enclosed a hand full of cases that lost and said the ombudsman is on our side in not so many words

[Raymondo]

This is my signed agreement with highlighted termination sections

[R0b]

Hello

Nothing more I can really add to what has already been said. Contractually the Consumer Credit Act 1974 says you are not liable, but BMW will say otherwise hence these letters. You of course have to decide yourself if you are prepared to pay the amount or continue defending it.

I would be interested in seeing the second letter that was sent to you including the 'hand full of cases'. The Financial Ombudsman looks at what is fair and reasonable and almost always take the side of the finance company because of what the contract terms say - they tend to disregard the law entirely but on the flip side, there has been a case where Mercedes have taken someone to court and lost on the excess mileage argument.

If you want, you could respond to Laura Hayes and ask her to explain what lawful grounds does she believe that 'late payment interest charges' can be added and how much of these charges is being added, since she did not clarify in her original letter and was rather vague.

Secondly, you could also include a brief point about what I've just said about the court case and put them on the back foot a little. Something along the lines of rejecting their offer to complain to the Financial Ombudsan on the basis that the regulator loks at what is fair and reasonable and tends to disregard the law. However, there has been case law in relation to excess mileage where Mercedes Benz attempted to bring the same argument to court and lost their case. You can find some example wording and the court case in the letter I uploaded on the link below.

http://legalbeagles.info/forums/foru...excess-mileage

IF you want feedback on your letter before sending then post up a draft and I will see if I can look at it

[Raymondo]

[Raymondo]

[Raymondo]

[Raymondo]

[Raymondo]

[Raymondo]

Im happy to reply as you have suggested I’ll pop a copy up here too before posting to them, I’m happy taking this to court but don’t want bayliffs at my door before. Is this going to be the case?

[R0b]

No, they would have to take you to court and then obtain judgment, or if you took them to court they would have to counterclaim and then be successful.

The letter is a standard letter from them cherry picking parts of the CCA but missing out section 100(1) which quite clearly states that if you terminate under section 99 then your liability is capped to one half of the total amount. This provision is what is known as a limitation of liability, in the same way you will see their limitation of liability clause in the finance agreement - it is a limit on what you can be liable for except in this case it is a statutory one and not a contractual, and statute law trumps contractual terms in the event of a conflict.

Their letter is suggesting that they might mark your credit file so watch out for that and if they do then you may have a claim to bring to court.

Out of curiosity, have you paid over the 50% amount?

[Raymondo]

Yes I payed over the 50% mark and then thought about voluntary terminating the contract and took a few more months to go ahead with it. Wasted more money in monthly payments

[Raymondo]

Good morning R0b,

Another letter from BMW Financial, this is a late payment interest fee.

as they said in yesterday’s enter if I do not pay within 7 days I will get a late payment fee, but no terms of the interest etc.

as you can see in this letter still no terms of interest.

i haven’t wrote to them yet but will do today and forward a copy here for any advice you wish to input.

[Amethyst]