Tweet
Can someone advise on the below please am I liable to pay the excess mileage based on Section 99 (2) this is the reason they are stating
Due to the concerns highlighted on our recent call, please find below an explanation as to why you are liable for mileage charges.
Section 99 (2) Consumer Credit Act 1974, 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.
Due to the concerns highlighted on our recent call, please find below an explanation as to why you are liable for mileage charges.
Section 99 (2) Consumer Credit Act 1974, 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.
Comment