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Here is the latest letter from Alphera. Am i right in thinking here that I have them on the back foot as they have moved away from trying to quote different aspects of the CCA? The way I read the below letter is they are telling me that the excess mileage charge stands, which I think is fair enough if they are paying me back the over payment. The over payment is something that they have not really addressed in the below letter, so am I to think that they have done this intentionally?
R0b , What do you suggest my next move should be?
Dear Mr XXXXXXXXX
Thank you for your email dated 26th August 2019 regarding the excess mileage invoice raised on your agreement. After a full review of the matter, I must refer you to my colleagues email dated 22nd August 2019.
As per the email from my colleague, our stance remains that we are correct to charge excess mileage as per the terms and conditions of your agreement. As you exercised your right to voluntary terminate the agreement early, the mileage allowance has been pro-rated as outlined in your financial document, as we as the voluntary termination documentation.
I must advise you that you had a Contract Purchase agreement and as you will be aware, your monthly rentals were based upon a given mileage allowance set by you, at the start of the agreement. Alphera Financial services call this product a select agreement
If this agreement is ended early, thus ‘voluntary termination’, your mileage allowance is then pro rata to the number of payments made to us.
Exceeding your mileage allowance means that the vehicle has a lesser value than what was predicted. Therefore, the extra depreciation is classed as putting the vehicle out of reasonable condition. As mentioned to you in my colleague’s response, it would not be acceptable or fair for Alphera Financial Services to absorb this loss of value that the extra mileage has caused to the vehicle.
In relation to your comment regarding the half way figure allowing you to voluntary terminated, I can confirm this figure of £9742.42. “The customer has the right to voluntary terminate once they have paid 50% of their total agreement.”
We received you signed VT paperwork on 23rd July and as such removed the rental of 25 July, as point of voluntary termination you had surpassed you half way figure. You had use of the vehicle for 43 months and paid 43 rentals. When calculating your excess mileage figure we gave you two extra month allowance on the pro-rat calculation, however this does not meant that 45 rentals have been paid. Please find enclosed a copy of the ledger as confirmation of the payment which you had made to this finance agreement.
Once you paid 50% off your total finance agreement, it is up to you when you exercise your right to voluntary terminate after this point. If you have use of the vehicle past this point, consequently you are expected to pay for this, therefore you cannot expect Alphera Financial services to reimburse you while you have had use of the vehicle.
I can also confirm that if you had not voluntary terminated and had completed the duration of your agreement and handed the vehicle back, you would still have had an excess mileage invoice as you had travelled over you annual mileage allowance , as well as your pro-rata allowance.
In closing, whilst I understand this is not the response you were looking for, I hope that this letter clarifies our position that the excess mileage invoice remains payable in full. If you disagree with our stance then your next course of action will be to contact the Financial Ombudsman.
Please note that, under the terms of our complaints procedure, this is our final response. If you are dissatisfied with it then you have the right to refer your complaint to the Financial Ombudsman Service, free of charge.
R0b , What do you suggest my next move should be?
Dear Mr XXXXXXXXX
Thank you for your email dated 26th August 2019 regarding the excess mileage invoice raised on your agreement. After a full review of the matter, I must refer you to my colleagues email dated 22nd August 2019.
As per the email from my colleague, our stance remains that we are correct to charge excess mileage as per the terms and conditions of your agreement. As you exercised your right to voluntary terminate the agreement early, the mileage allowance has been pro-rated as outlined in your financial document, as we as the voluntary termination documentation.
I must advise you that you had a Contract Purchase agreement and as you will be aware, your monthly rentals were based upon a given mileage allowance set by you, at the start of the agreement. Alphera Financial services call this product a select agreement
If this agreement is ended early, thus ‘voluntary termination’, your mileage allowance is then pro rata to the number of payments made to us.
Exceeding your mileage allowance means that the vehicle has a lesser value than what was predicted. Therefore, the extra depreciation is classed as putting the vehicle out of reasonable condition. As mentioned to you in my colleague’s response, it would not be acceptable or fair for Alphera Financial Services to absorb this loss of value that the extra mileage has caused to the vehicle.
In relation to your comment regarding the half way figure allowing you to voluntary terminated, I can confirm this figure of £9742.42. “The customer has the right to voluntary terminate once they have paid 50% of their total agreement.”
We received you signed VT paperwork on 23rd July and as such removed the rental of 25 July, as point of voluntary termination you had surpassed you half way figure. You had use of the vehicle for 43 months and paid 43 rentals. When calculating your excess mileage figure we gave you two extra month allowance on the pro-rat calculation, however this does not meant that 45 rentals have been paid. Please find enclosed a copy of the ledger as confirmation of the payment which you had made to this finance agreement.
Once you paid 50% off your total finance agreement, it is up to you when you exercise your right to voluntary terminate after this point. If you have use of the vehicle past this point, consequently you are expected to pay for this, therefore you cannot expect Alphera Financial services to reimburse you while you have had use of the vehicle.
I can also confirm that if you had not voluntary terminated and had completed the duration of your agreement and handed the vehicle back, you would still have had an excess mileage invoice as you had travelled over you annual mileage allowance , as well as your pro-rata allowance.
In closing, whilst I understand this is not the response you were looking for, I hope that this letter clarifies our position that the excess mileage invoice remains payable in full. If you disagree with our stance then your next course of action will be to contact the Financial Ombudsman.
Please note that, under the terms of our complaints procedure, this is our final response. If you are dissatisfied with it then you have the right to refer your complaint to the Financial Ombudsman Service, free of charge.
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