Voluntary Termination - refusing to take back the car unless excess mileage is paid

[R0b]

Have you confirmation from the DVLA that the V5C is now in their name and the records have been updated? If not, any liabilities will still fall to you until that process is completed as you will still be registered as the keeper.

Let's see how fast they choose to act now.

[Aenides]

Got a temporary letter from the DVLA this week to say the vehicle is no longer in my name. Hopefully this should go some ways towards getting them to make a move and come and collect the car. I still need to engage their complaints department though as to date I've been dealing with their collections department.

[Aenides]

I received a slip from the DVLA stating i was no longer the registered keeper of the vehicle. What should be my next steps do you think? I'm considering contacting them again in writing to insist the vehicle be collected. They've not contacted me and I really need this matter to be closed.

[R0b]

I don't have anything further to add at this stage - I've given you some options in an earlier post and my views haven't changed.

You can either follow one of those suggestions or alternatively keep the car and start the formal complaints process. They will have 8 weeks to respond and then if you still aren't happy you will need to raise it to the Financial Ombudsman which could take another lengthy period of time.

I'm afraid we can't tell you what to do as it's your decision to make.

[Aenides]

Thanks, I'll follow and engage their complaints procedure. Checked credit score on credit karma and there is nothing included so I am assuming they have not even recorded the VT.

[Aenides]

UPDATE - I have received a letter from Northridge finance stating they expect to be paid just shy of the full amount for June due to the timing of when the VT was exercised. They have also however included details of the vehicle pick but the request for the 2.5K for excess miles is not on the list of outstanding amounts they are expecting to be paid for. The collection company contacted me today and we have agreed they will collect the vehicle on Thursday so fingers crossed this should all be over shortly. I'll pay them the extra month they're claiming due to the timing of the VT i think but make it clear they will be getting nothing else and i'm only paying that so they go away.

[R0b]

The CCA says you are only liable to pay sums due so it's irrelevant if the instalment due date is the 28th of every month and you terminate on 20th, because payment for that month is not yet due. The CCA does not say you pay for a pro-rated amount in the month you are terminating the agreement so in either case, the sum for June is not yet due and therefore not payable at the time of termination.

Just bear in mind that once you pay the instalment, you won't be able to recover it. I would suggest you look at my VT guide and the checklist before collection takes place. I would also take a photo of the odemeter too as it wouldn't surprise me if they charge you for excess mileage once they've collected it - be warned.

[Aenides]

Well.... cars gone now. Guy arrived to inspect and take the car, he checked it all over and just as he was doing the final checks he discovered a nail in one of the tyres so refused to take it as it was a safety hazard. He wanted to rebook it for another day but I was having none of that as I am away on holiday and don't want it sat outside my house drawing attention. I insisted i'd get it repaired but he claimed he couldn't wait. HE called HQ and they agreed I could drop it off at their other depot which was only 11 miles away. So I then had to get the tyre repaired, drive the car to their collection depot and then arrange to get a lift back from a friend. Whole thing lasted about 3 hours. Thing is I checked the tyres last night and they were fine, then i took the car to be fuelled after i'd done all my checks as one of the points on their sheet was that it have enough fuel in it so the light wasn't coming on when it was picked up. Reckon that was when i got a nail in the tyre. Anyways, all fixed now and handed over with more pictures taken. The guy kept saying "whatever i find wrong with it ….." and i kept asking why he was expecting to find anything wrong with it. Seemed to me they'd made up their mind to find something wrong with it. The guys was alright though but I'm expecting a hefty falsified bill later in the month.

[Aenides]

Car definitely gone and loan removed from my credit score after i challenged it. looks like this saga has come to a close. Thank you very much for your help.

[Aenides]

I have today received a letter from Northridge requesting over £2.5K for excess miles and 1k for damages. They have sold the vehicle and are claiming under my HP agreement i am responsible for these payments. for a start i had a PCP agreement not an HP so they have got that wrong to begin with. They are also claiming the vehicle didn't have anMOT which is incorrect and the damages they are claiming on the vehicle are cosmetic things like stone chips on the bottom of the bumper which are all wear and tear for a vehicle 5 years old. Any advice welcome. Thanks.

[R0b]

Repeat what you've just posted in a succinct letter/email to them.

As an FYI a PCP is a form of HP just structured differently so I dont think it's worth pointing that out because it's irrelevant for your purposes.

I believe you can check if a car has a valid MOT on the .Gov website so you could point that out to them and they'll find that the car does, so any charges for that should be removed immediately and as for the rest, you either deny or pay up.

[Aenides]

Have received a letter threatening to record a default notice against my name if i don't pay up. Can they do that if the debt is in dispute?

[R0b]

Yes Northridge can do what they like, including recording a default notice against your credit file but the real question is whether it is lawful. In my view, the answer to that question is a flat no.*

Not enough time at the moment to explain but will hopefully answer the question properly later today at some point.

[R0b]

So, on the back of my post yesterday, I am of the opinion that the lender is entering dangerous waters and could potentially leave itself open to claims for breach of the GDPR, by failing to ensure that the data recorded is accurate and up to date.*

In a nutshell:*

1. Article 5(1)(d) of the GDPR requires lenders to ensure that personal data takes every reasonable step to ensure that the data is accurate or, if it is inaccurate, to rectify or delete the data without delay. The GDPR does not explicitly define what is meant by 'accurate', but the Data Protection Act 2018 provides a definiton of 'inaccurate' which means personal data that is incorrect or misleading as to any matter of fact.*

2. Credit reference agencies collect information about an individual's credit history for the purposes of assisting creditors in determining whether the individual would be able to meet their repayments if offered credit. In other words, your credit file will show the credit agreements you have entered into and if you have repaid the instalments each month and on time. If you fail to pay your monthly instalment on time, then your credit file may report that the payment is late or missed, until the payment has been made.

3. Experian have a issued guidance titled 'Understanding your Experian Credit Report and Credit Score' and in their guidance, they explain a list of 'status codes'. These status codes are used to report on whether you have made your credit repayments on any credit agreement in the last 6 years. It's clear from the guidance that the status codes are to report on credit repayments or the repayment of an agreed price in return for goods or services e.g. mobile phone or broadband services.

4. The guidance issued by SCOR, 'Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies' on behalf of the credit industry and with input or assistance from the ICO confirms that the information supplied to credit reference agencies all relate to forms fo credit. It also then goes on to say that a default should not be filed if the amount is solely made up of fees or charges. Although silent on late payment markers, they are a predecessor to issuing a default notice and there is no reason why the same principle should apply to late payment markers.

5. Simply put, excess mileage and/or refurbishment charges are damages for breach of the agreement. They do not form part of the credit advanced to you at the beginning of the agreement; it is compensation for not adhering to the terms. By recording these charges on your credit file, it is in my view both misleading and inaccurate because:

a. it could suggest or imply that the agreement has not been terminated despite already giving notice to terminate. How can it be accurate to say you are behind on credit repayments when the agreement no longer exists?

b. It may also give the impression to prospective lenders that you have not met your credit repayments under the agreement when of course this is not true. Any prospective lender will take into account missed or late payments when assessing your creditworthiness.

c. In any event it may indicate that you as an individual that you are in some sort of financial difficulty and that could lead to you being rejected for future credit at favourable interest rates meaning you might have to look at lenders who offer credit to individuals who have had a history of poor credit or in certain instances, being offered no credit at all. In either case, this would clearly be unture.

Ultimately, if you do notice that an adverse entry has been recorded on your credit file by the lender, you could make a complaint and then on to the Financial Ombudsman and see what they have to say, but I think the reality is that you probably would have to take it to court to get a determination or the lender might try to settle the claim on the basis they don't want to public argue a grey area in court with the potential to lose and have the matter become public. Although County Court decisions aren't binding, they can be equally damaging if more and more consumers take them on and win at court. It's probably financially beneficial to keep matters like this out of court so they can continue to use the same tactics on others who are unaware of their rights.

What you do or how you approach this is entirely up to you.

[Aenides]

Thank you. They have sent a calculation bridging the gap between my last payment and the date I wrote to confirm I wanted to exercise VT and are quoting that as outstanding payment so I may have to pay that. The alleged excess miles anddamage i am still disputing and will not be paying that.