Car lease broker cancellation charge

[GreyTheOwl]

Hello,
Hoping someone can help me with a cancellation scenario I have.

I have signed a brokers Personal Contract Hire Vehicle Order form exactly a week ago. After much deliberation I feel I’ve made a mistake
and I now want to cancel. I’ve been advised I will be charged over £800 to do this. No other forms have been signed. I’ve not made any payment.

The terms seem vague. Is there no legal cooling off period?

Quote from the paperwork

“Cancellation. No order which has been accepted may be cancelled by The Customer except with the written consent of the Company and subject to the Customer indemnifying the Company in full against all loss (including loss of profit), costs (including the cost of labour and materials), damages, charges and expenses incurred by the Company, our cancellation fee is £499.00 plus VAT. Where a customer cancels the Agreement during the Cooling Off Period, the Customer will still be liable to pay any fees due as listed here (the Vehicle Order not being a "linked agreement" for the purposes of the Consumer Credit Act).

Any advice would be a great help.
Thanks

[noc101]

Hello,
Hoping someone can help me with a cancellation scenario I have.

I have signed a brokers Personal Contract Hire Vehicle Order form exactly a week ago. After much deliberation I feel I’ve made a mistake
and I now want to cancel. I’ve been advised I will be charged over £800 to do this. No other forms have been signed. I’ve not made any payment.

The terms seem vague. Is there no legal cooling off period?

Quote from the paperwork

“Cancellation. No order which has been accepted may be cancelled by The Customer except with the written consent of the Company and subject to the Customer indemnifying the Company in full against all loss (including loss of profit), costs (including the cost of labour and materials), damages, charges and expenses incurred by the Company, our cancellation fee is £499.00 plus VAT. Where a customer cancels the Agreement during the Cooling Off Period, the Customer will still be liable to pay any fees due as listed here (the Vehicle Order not being a "linked agreement" for the purposes of the Consumer Credit Act).

Any advice would be a great help.
Thanks

Hi. Where did you get to with this as I'm in a similar situation. Thanks

[GreyTheOwl]

Hi noc101,
This still continues for me. They have sold the debt to a collection agency. I’ve complained to the FCA and the BVRLA and have another appointment to see the CAB.

I’ve still to hear back from either body at this stage.
I feel like I want to take it to court as to me, these charges are absolutely over the top for what is essentially admin work.

The vehicle was in stock and only one finance company were apparently doing the deal for the model of car.
In addition they tell me the car was easily re-leases.

For sure I’m learning a valuable lesson on signing contracts but circumstances change, minds change and the cooling off period is there for that purpose.

There is no protection for consumers with these companies it seems and I want to contest that.

I may lose but I’ll be fighting it all the way.

[des8]

If you order a car from a dealer at his premises, you’ll usually sign a vehicle order form and pay a deposit.

This means you’re fully committed to buying the car as you've signed a legally-binding contract.

If you change your mind, the dealer is within their right to keep your deposit or even take you to court to recoup the shortfall.

If it is a distance or off premises order (ie you haven't been to the premises) you are covered by the Consumer Contracts Regulations and benefit from a 14 day cooling off period

[GreyTheOwl]

Hi DES8, this company tell me the contract says I have to pay the cancellation charges as it says so in the T&Cs.
So basically I have no rights to cancel without charge. They’ve sold the debt to a collections agency (£900) I’m concerned they can put a default on my credit rating.

[des8]

Have you obtained a breakdown of their charge?
They can only recover their losses, which they're also under duty to mitigate
When you cancel the contract the dealer should attempt to minimise his losses. normally this would be done by selling to another person and then recovering from you any additional costs incurred in re selling the vehicle plus any reduction in the sales price achieved.

You have the right to challenge a contract term if you think it unfair. The courts will decide if it is unfair.
Consumer Rights Act 2015 part 2 applies.
schedule 2 gives examples of unfair terms.

Suggest you write to debt collectors and tell them they should cease collection and return it to the original creditor as the charge is being disputed.
Then read CRA 2015 part 2 plus the schedule and write to dealer accordingly.

[GreyTheOwl]

Thanks Des, I will act on your advice. Much appreciated.

[chaudo]

A question to the OP - I’m in the exact same boat as you, may I ask how you got on? (Broker asking for a cancellation fee despite me cancelling my order within 14 days)