Audi Finance Voluntary Termination issues

[remlap1440]

Hello folks,

I am looking for a wee bit of guidance to make sure I am in the right and that the next step is hopefully going to help. It is a bit of a story but I have bullet pointed to help

We have used the template letters from here and just changed the necessary parts.

We VT'd our Audi on the 6th Sept 2018 using a template letter found on here (see attached VT Letter 6th Sept on next comment) and gave them notice to collect the car on the 20th Sept or within 14 days. The car was finally collected on the 24th after BCA kept cancelling appointments over the 4 days.

At the time BCA issued a report to us which states there is no damage to the vehicle (See attached BCAL_Collection 24th Sept.pdf t)

We then received a Statement letter from Audi on the 12th October showing that we had cleared the full balance (See attached Audi statment 12th October.pdf ) and we foolishly thought that we, were all settled.

On the 30th October we received our first "invoice" from Audi for excess millage and refurbishment costs of £803.18 (See attached first payment demand 30th Oct.pdf )

We then wrote to Audi, on the 6th November to inform them that the invoice was denied (See attached Dispute_excess_millage 6th Nov.pdf )

We received a demand for payment on the 4th December from Audi, stating the the balance was now in arrears and they implied that they would put a mark on my credit rating (I cannot find this letter but will look it out)

We then wrote to Audi once more disputing the invoice and informing them that they cannot mark my credit rating for this and that should they continue in this vain then we would treat their communications as harassment and go directly to the FOS (See attached Further_dispute_millage 10th Dec.pdf )

On the 31st December we received Audi's "final response" informing us that they still believe that the £803.18 is payable. This time they provided another inspection report (see attachment final response 31st Dec.pdf )

That is the outline of the dispute. I have a few questions that hopefully someone can help me with.

I will now go to the Financial Ombudsman and hopefully get a better outcome.

1) The original BCA report and the "newer" report have some discrepancies, Can this be raised with the FOS to support my case? I have numerous pictures of the car showing no damage and all nice and clean.
Millage 35591 and 35846
Tread 1.6 and 4.0 to 6.0
Damage None and LDF, LDR, LHR, RHR, Wheel

2) As the millage is different and when collected there was no damage should I be pointing the finger at BCA for any damage?

3) The car was repaired though insurance after an accident. Would I be able to "forward" the invoice for the repair work to them?

4) Should I raise the credit file issue with FOS?

5) Is there anything else I should raise or leave out to help my case?


Thanks again for the advice that you give.


A

[remlap1440]

VT Letter 6th Sept.pdf

[R0b]

Hello

It would be reasonable to raise the point concerning the discrepancies of the first inspection and the second. You might not want to go as far as saying that BCA are to blame but you could say that the car was out of your hands from that day forward and as such your obligations to take care of the car were discharged.

Feel free to raise the credit issue with the FOS, of course if you get no where with the FOS, then your last resort will be to pursue legal proceedings against Audi.

[remlap1440]

Thanks R0b for the reply. I have used a template for the FOS that you had provided to Kpros

Do you still have a copy of the transcript for the CC Case? Mercedes v Cahalane so that I can include this.

This is what I am putting on the FOS complaint, Would you mind casting your eye over it for me and point out anything that you think should/shouldn't go in?

Once again thank you for your time.

tell us about your complaint – what happened?
I wrote to Audi Financial Services on 6th Sept 2018 and terminated my PCP agreement. BCA collected the vehicle on behalf of Audi on the 24^th September after repeatedly failing to show up on agreed dates.

On the 12^th October I received a statement showing that the monies due was £0.00. I then received an invoice on the 30^th October for excess millage and refurbishment costs. I disputed these charges because Section 100(1) of the Consumer Credit Act 1974 says that if I terminate the agreement in accordance with Section 99 (this section says to terminate I must give notice in writing, which I did), then my liability will be limited to one half of the total price payable under the agreement. The definition of "total price" under the CCA 1974 (Section 189) says that damages or compensation for breach of contract are not included as part of the total price under the agreement. This position is supported by the recent County Court case Mercedes-Benz Financial Services UK Limited v Cahalane (I included the transcript) where Deputy District Judge Ellington confirmed that, among other things, excess mileage charges were damages for breach of contract and under the definition of "total price" they cannot be recovered when the right to voluntary termination is exercised.

Audi Financial Services have produced a report detail alleged damages to the car which was generated on 2^nd October 2018, 8 days after it was originally inspected with no damage found. I would bring your attention to the change in millage of 255 miles, the change in tyre tread and the change in damages. As the car was no longer in my possession, my obligations to take care of the car were discharged after the original inspection by BCA. Please see pictures of the car while in my possession on the 20^th September (The day BCA where to collect the car)

On the 4^th December Audi Financial Services contacted us again demanding payment while they were still investigating my complaint. In this letter they insinuate that they will put a missed payment mark on my credit file I do not pay. It is my understanding that it is impossible for them to do this as I have not missed any payments due to them. I view this a form of coercion and bullying by Audi Financial Services to force me to pay an invoice that is not valid and must be stopped.

how have you been affected – financially or otherwise?
This has affected me in several ways, particularly as I am having to spend lots of time and resources responding to Audi Financial Services who appear to have ignored the CCA 1974 altogether. Acts of Parliament such as the CCA 1974 take precedence over common law contractual terms. I also believe that Audi Financial Services are in breach of Rule 7.14.1 of CONC because they have not provided any clear justification as to why the contractual terms overrule the CCA 1974. It has caused a great deal of stress and inconvenience to me which is why I am now making this complaint.

[R0b]

I'm tinkering with a letter, let me get back to you tomorrow with an example.

[remlap1440]

Hi R0b just to see if you had managed to tinker with your letter?

I will check back next week.

[R0b]

Hi sorry, yes I have, I'll post up later tonight or tomorrow morning

[R0b]

Morning,

I've attached an example complaint that you can issue to the FOS by email. It is not a one-size-fits-all because it covers all the usual issues raised by finance companies so some of it may or may not apply to you and you will need to edit it according to your situation.

Hopefully it gives you a starting point and feel free to add anything if you think it is relevant. I'll try and collate all of the documents referred to in the letter and upload them here, but might have to be later this afternoon as I need to pop out.

[R0b]

Here's the documents to go with the complaint.

[remlap1440]

Thanks rob I will have a look over these later tonight and if I am unsure about anything I will ask. I am sure it will be all good.

[remlap1440]

Just an update. After writing to FOS I received a letter letting me know they will be looking into my complaint and get back to me within 4 weeks.

[remlap1440]

Hello again,

The case has now progressed a little further. Audi has now passed our details to a debt collector called Ardent, who has already attempted to contact us.

Is this something further, that I can take to the ombudsman as they are already looking into our case?

Are Audi allowed to pass this on while the ombudsman investigates?

Should we even engage with the debt collector? [we stay in Scotland]

It also says that "Further to our attempts to contact you regarding this" which implies we have not been in contact, however we have responded to every letter setting out our position, and we have told Audi twice about a change in address, however this one has been redirected from our old address. Could this be an issue?

Thanks again in advance



rob

[R0b]

When you told Audi about a change of address was it over the phone or by letter? If by letter do you still have copies of the letters you had written?

[remlap1440]

Hi rob

I have attached one of the letters where I ask them to use my up-to-date address, I did send another one but I must be on another computer.

Audi have also written to the correct address, so they do know about it.

I think it may be a case of tail not talking to the head, but that's on them.

[R0b]

You should reference the dates of those letters and provide copies of them too. You might also want to point out that they have previously written to your new address and so they are fully aware that you no longer reside at the place the letters have been sent to. Either this is a genuine mistake or a deliberate act (I would go with the latter unless proven otherwise).

See below a very quick example response but I haven't included much reference to what I've just said above so you might want to weave that in. There's things in brackets where you will need to insert information so make sure you complete all of it or take it out as it won't look good sending a letter with placeholder information.

Whatever you send, it should prompt a response from Audi probably an apologetic one.

--------------------------------------------------------------

Dear Sir or Madam,

I am in receipt of a letter dated [insert date] (a copy of which is enclosed) suggesting that you have attempted to contact me regarding the alleged debt and have now passed my information to your debt collection partner, Ardent.

You will be aware that I raised a formal complaint to the Financial Ombudsman on [insert date] and yet Audi have continued to pursue me for the alleged debt, contrary to your obligations under the FCA rules, namely the Consumer Credit Sourcebook (CONC). I would refer you to CONC 7.14.1 in which it stats that:-

"A firm must suspend any steps it takes or its agent takes in the recovery of a debt from a customer where the customer disputes the debt on valid grounds or what may be valid grounds."

Audi's continued pursuit and forwarding of my information to Ardent, is a flagrant breach of CONC 7.14.1 whilst this dispute is currently ongoing and remains under consideration with the Financial Ombudsman. I require a full explanation as to why you have not suspended all action pending the outcome of the Ombudsman's decision. Your actions have aggravated matters and I will be writing to the Ombudsman about your conduct in this matter, seeking compensation for the distress and inconvenience caused. Furthermore, I am also minded to write to the Financial Conduct Authority's Enforcement Team about your complete disregard to the rules under which you are required to comply with as part of Audi's authorised status.

I fail to see any excuse on Audi's part in respect of the matters above and as part of your response to this letter, I would also require you to confirm that you have suspended all debt collection (including any instructions given to Ardent) until such time the Financial Ombudsman has made a decision.

Whilst writing, I also note that the address on the letter refers to [insert address]. The address is no longer where I currently reside and I have already informed Audi on two occasions to update its records so that it reflects my current whereabouts, which is [insert new address]. It is deeply worrying that not only is Audi wilfully not complying with its obligations under the FCA rules, but it is also failing to comply with it's obligations under the General Data Protection Regulations to ensure that my personal data is accurate and up to date (see Article 5(1)(d). Accordingly, please treat this letter as a request for rectification pursuant to Article 16 of the GDPR to update my address information. You are obligated to do so without undue delay and in any event one month from receipt of this request ([insert date 30 days from today]). Please confirm to me in writing once my information has been updated. If I do not hear back from you by [30 days time], then I will consider you to have not complied with my request and I reserve the right to make a formal complaint to the Information Commissioner's Office and/or commence legal proceedings for an order to rectify the inaccurate date that you hold about me, together with any costs associated with those proceedings.

I look forward to hearing from you in due course.