Vol Term dispute - help writing to the Financial Ombudsman

[kgleds86]

Hi,

I am hoping someone here can help.

I VTd my car in May. Manheim found that two wheels trims were scratched, that the bonnet paint (which had been repaired at a citroen approved garage) had flecks in it and that as I had no stamped service book they stated I had no proof the car had been service.

I disputed this and wrote to PSA finance explaining:
-One of the wheel trims damage was a tiny scratch smaller than 25mm stipulated on the BVRA Fair wear and trade guide

-The paintwork on the bumper was completed by a citroen approved garage and there are no paint flecks - the pictures of the car clearly show the repair work was of a high standard. Apparently the guy at Manheim said the paint colours were slightly different? This is not the case and the pictures do support his claim.

- I provided them with paper copies of the two service reports completed by the citroen garage as evidence of the service history. I also showed the online versions on my phone. The car did not come with a service book (so I do not feel I can be liable for this) and so was not stamped. However, the BVRA guidelines state that I needed to provide evidence of the electronic record of the service which I did. These were also signed by the garage.It was really clear that the cars had been serviced. Yet I got charged £20 for the lack of the service book (which I never got with the car... and yes I know now I should have asked for one..but this was my first 'new' car and I assumed it was all done electronically now) and then £200 for not evidencing its service history.



I have spoken to PSA on the phone disputing this as they would not let me do so via email. I received their response a few days ago which was generic and didn't refer to any of the above points and they said they were still pursuing the full amount. I then received a letter offering me a reduced fee by £90.

I am not contesting the full amount and I am happy to pay for one of the wheel trims and the £20 charge for a lack of service book. However, I still dispute liability for the others. I phoned and asked for an email I could send a written dispute to. I received a response from recoveries today saying they had read it but they were still pursuing the total amount and I have to refer my dispute to the FSO.


Can anyone help with a letter to the FSO?
Should I offer a settlement figure to PSA?
What are the chances of success? Will this affect my credit rating? I don't really want the hassle of this as I may be looking to move houses next year and I don't want a black mark on my credit history

Thanks so much for reading and for any help offered.

Kate

[kgleds86]

rob any help would be appreciated

[kgleds86]

R0b any help would be appreciated

[R0b]

Hello Kate,

Have PSA given you their final decision on the matter and said that your next steps is to make a complaint to the Financial Ombudsman? I've noticed others have reported that their Recoveries Team simply send a reply rather than carrying out a formal investigation and providing you with their final response.

I would go back through your emails/letters and see if you have that sort of response. If you don't email the Recoveries Team and state that you made a formal complaint, they have responded by saying that they will continue to pursue you for the amount stated and so you therefore consider that that response is their final decision in relation to your claim, and you will now make a formal complaint to the Financial Ombudsman.

I've attached an example complaint letter that you can send to the FOS but you will need to adapt it to suit your current situation as it is a one-size-fits-all. There are some blanks that need to be filled in, these are generally coloured grey and there is also some sections highlighted in yellow and/or have square brackets around them. These sections are optional depending on your circumstances so don't just do a copy and past job otherwise you will look silly and not be taken seriously.

I've attached the CAP HPI conditions too so you can use that as evidence. If you are prepared to pay £20 but reject the rest, then clearly state that in your letter. It sounds like PSA are being completely unreasonable and the onus is on them to prove that a service book came with the vehicle, not you and even if it did, you've already evidence that the car was in fact serviced.

You might want to consider including in your complaint letter a request for compensation for harassment by PSA for an amount which they already know is not recoverable, which has caused you distress, inconvenience and frustration.

If you need a sensecheck before you send it over to the FOS, post up a copy on here with personal info redacted.

[kgleds86]

Hello Kate,

Have PSA given you their final decision on the matter and said that your next steps is to make a complaint to the Financial Ombudsman? I've noticed others have reported that their Recoveries Team simply send a reply rather than carrying out a formal investigation and providing you with their final response.

I would go back through your emails/letters and see if you have that sort of response. If you don't email the Recoveries Team and state that you made a formal complaint, they have responded by saying that they will continue to pursue you for the amount stated and so you therefore consider that that response is their final decision in relation to your claim, and you will now make a formal complaint to the Financial Ombudsman.

I've attached an example complaint letter that you can send to the FOS but you will need to adapt it to suit your current situation as it is a one-size-fits-all. There are some blanks that need to be filled in, these are generally coloured grey and there is also some sections highlighted in yellow and/or have square brackets around them. These sections are optional depending on your circumstances so don't just do a copy and past job otherwise you will look silly and not be taken seriously.

I've attached the CAP HPI conditions too so you can use that as evidence. If you are prepared to pay £20 but reject the rest, then clearly state that in your letter. It sounds like PSA are being completely unreasonable and the onus is on them to prove that a service book came with the vehicle, not you and even if it did, you've already evidence that the car was in fact serviced.

You might want to consider including in your complaint letter a request for compensation for harassment by PSA for an amount which they already know is not recoverable, which has caused you distress, inconvenience and frustration.

If you need a sensecheck before you send it over to the FOS, post up a copy on here with personal info redacted.

Thanks can you take a look at the below... I haven't disputed the BVRLA guidelines being used as actually under them I shouldn't be charged anyway!


FORMAL COMPLAINT AGAINST PSA Finance

I am writing to lodge a complaint against PSA Finance concerning end of contract charges following a voluntary termination of a hire-purchase agreement in
accordance with Section 99(1) of the Consumer Credit Act 1974. The charges relate to a combination of vehicle damage over and above the agreed contractual amount. I am seeking to challenge these charges on the basis that they are unfair and/or that PSA Finance is not entitled to recover certain charges.

Nature of the complaint
In short, I am unhappy with the final decision of PSA Finance and, for the reasons set out below, I do not consider that I should be liable for the vehicle refurbishment charges and charges regarding to the car’s service history.

Vehicle refurbishment charges

Concerning the condition of the vehicle upon its return to PSA Finance, it was in my opinion returned in a reasonable condition. PSA finance seek to argue that the did not satisfy the criteria set out in the BVRLA standards and so it was not in a reasonable condition and has damage beyond fair wear and tear. However, I dispute this. The picture of the rear alloy wheel L shows that the small scuff is below 10mm. According to BVRLA guidelines ‘scuffs up to 50mm on the total circumference of the wheel rim and on alloy wheels are acceptable”. Accordingly, PSA Finance cannot charge for this scuff on the rear allot wheel L as it is considered ‘fair wear and tear’ under BVRLA guidelines. Please note that I am disputing the charge for damage done to the Front alloy wheel R as I accept this falls outside of a fair wear and tear.

I am also disputing their charge for ‘dirt in paint’ on the front bumper which the inspector said was a mismatch in paint following repair. This is not evidenced in the inspection photographs. Repair work on the bumper was carried out by a Citroen approved garage in May 2017 to the highest standards. BVRLA guidelines state that ‘repaired scratches and dents are acceptable provided the work in completed to a professional standard by repairers who can provide full warranty on their work. Autocraft Accident Repair Centre who carried out the repairs meet this criteria and I purposefully picked them to carry out the repairs as a Citroen approved garage I knew they could best match the paint. Accordingly, PSA finance cannot charge for this as it meets BVLRA guidelines

Additionally, I would like to point out that when comparing the CAP Vehicle Conditions matrix against the damage raised by PSA Finance, the vehicle itself would appear to fall into the average category. Accordingly, the vehicle would therefore be considered to have been in a reasonable condition at the time of it’s return.

Finally, I also dispute the PSA finance charge for an incomplete service history. Whilst I accept the vehicle was returned without a service book this was because I was never issued with a service book when I picked up the car. However, I did provide print outs of the two service reports I received from the Evans Halshaw garage each time they completed the service. BVLRA guidelines state that appropriate evidence of service history includes ‘hard copies of the service record or invoice clearly showing the date, vehicle mileage reading and the repairer/service agent’s stamp. Both reports were submitted with the vehicle and have been attached to this complaint letter as proof of service. I note that the Manheim inspection report has included a picture of the reports which were stapled together and assumed there was only one service report. This is not the case. The car was serviced by the garage it was purchased from under a service plan and evidence of this was submitted with the vehicle. Accordingly, whilst I am willing to pay the small charge for the missing service book I firmly dispute the larger charge for incomplete service history.

How I would like my complaint to be resolved
I am asking the Ombudsman to require PSA Finance to remove all charges and refrain from further demanding these sums.

I would also invite the Ombudsman to consider making a compensatory award against PSA Finance under DISP 3.7 of the FCA’s Handbook having poorly handled my complaint. I have spent a great deal of time having to prize information from (finance co.) because they have failed to give any substantive response, contrary to CONC 7.5.3 which obliges them to not ‘ignore or disregard a customer’s claim that a debt is disputed without providing clear justification and/or evidence as to why the customer’s claim is not valid.’

Further evidence enclosed
To enable you to fully consider my complaint and to minimise delays, I enclose the following documents which are referred to in this complaint letter:

• A copy of the CAP HPI Vehicle Conditions crib sheet; and

• Copies of Sections 99, 100, 173 and 189 of the Consumer Credit Act 1974.

• Copies of the service reports which were handed over with the vehicle.

• Evidence of the repair work completed by a Citroen approved garage.

Whilst writing, I would also highlight to you that Section 228(2) of the Financial Services and Markets Act 2000 requires the Ombudsman to decide complaints ‘by reference to what is, in the opinion of the Ombudsman, fair and reasonable in all the circumstances of the case’. DISP 3.6.4 provides that when considering what is fair and reasonable, the Ombudsman will take into account any relevant law and regulations. This was further confirmed in the Court of Appeal case of R (Heather Moor & Edgcomb) v FOS [2008] EWCA Civ 642 which held that the Ombudsman is ‘free to depart from the relevant law but if he does so he should say so in his decision and explain why’.

Accordingly, I would ask that you determine my complaint having regard to the applicable law which in this case is the Consumer Credit Act 1974 and also the decision of the judge in the Mercedes-Benz case. Please could you acknowledge safe receipt of my complaint and, if possible, provide me with an estimated time of when my complaint is likely to be looked at.

I look forward to hearing from you.

Yours faithfully,

[sihartley]

Hi Kate I also have an ongoing vt issue with PSA finance from May this year. I would be interested to know how your case is progressing and am more than happy to share anything relevant from my battle with PSA, if it can assist you. The FOS is currently looking into my case after sending them a very similar letter to yours. They seem like a nightmare to deal with (PSA). Not once have they directly answered any of my letters, just sent generic responses and to date have provided no evidence of any alleged damage. They have now passed me to a debt collection agency even though the FOS is looking at it.
Good luck Lauren

[R0b]

I'll tkae a lookand get back to you.

[R0b]

Whilst writing, I would also highlight to you that Section 228(2) of the Financial Services and Markets Act 2000 requires the Ombudsman to decide complaints ‘by reference to what is, in the opinion of the Ombudsman, fair and reasonable in all the circumstances of the case’. DISP 3.6.4 provides that when considering what is fair and reasonable, the Ombudsman will take into account any relevant law and regulations. This was further confirmed in the Court of Appeal case of R (Heather Moor & Edgcomb) v FOS [2008] EWCA Civ 642 which held that the Ombudsman is ‘free to depart from the relevant law but if he does so he should say so in his decision and explain why’.

Accordingly, I would ask that you determine my complaint having regard to the applicable law which in this case is the Consumer Credit Act 1974 and also the decision of the judge in the Mercedes-Benz case. Please could you acknowledge safe receipt of my complaint and, if possible, provide me with an estimated time of when my complaint is likely to be looked at.

Looks fine but would remove the two above paragraphs.