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Good Afternoon everyone,
I have recently submitted a voluntary termination with MBFS using the templates on the forum. The car was in excellent condition with no remarks for damage. However, one factor was that the mileage allowance was exceeded by circa 40,000 miles.
The initial MBFS response dated 29/10/2019 was:
Further to your recent email received by our offices, Whether you are returning your car at the end of your agreement or upon use of the Voluntary Termination (VT) clause, as you have not exercised your right to purchase the car, an excess mileage charge will be raised should your return mileage exceed your total mileage allowance. This obligation is set out within the first page of your agreement, under key information. The provisions of the Consumer Credit Act that cover a customer’s right to VT their agreement do permit us to include any over mileage when determining what is 'not reasonable' upon the cars return. It is stated in your agreement under ‘Excess Distance’; ‘If the vehicle is returned to us (whether at the end of the period hire or an earlier termination), we will calculate the total distance travelled by the vehicle whilst in your possession (the “Total Distance”)’.
Your mileage allowance has therefore been re-calculated on a pro-rata basis in line with the length of time you have had the vehicle in your possession.
I would also like to kindly refer you to S99 (2) Consumer Credit Act 1974 where it states:
‘Termination of an agreement under S (1) does not affect any liability under the agreement which has accrued before the termination.’
As your agreement was subject to a mileage allowance prior to termination and you have exceeded the allowance of miles, the charge has been raised correctly and remains payable.
The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative effect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement
Should you have any further queries, please do not hesitate to contact one of our advisors on 0370 240 1110. Calls to our numbers starting 03 will cost no more than calling 01 and 02 numbers.
I since responded to them with the template letter on the forum, mentioning the provisions of S99 (2) and the recent MBFS court case, their response to this letter dated 6/11/2019 was:
Further to your recent email received by our offices, please find attached a copy of your appraisal stating the mileage on the vehicle when returned.
Whether you are returning your car at the end of your agreement or upon use of the Voluntary Termination (VT) clause, as you have not exercised your right to purchase the car, an excess mileage charge will be raised should your return mileage exceed your total mileage allowance. This obligation is set out within the first page of your agreement, under key information. The provisions of the Consumer Credit Act that cover a customer’s right to VT their agreement do permit us to include any over mileage when determining what is 'not reasonable' upon the cars return. It is stated in your agreement under ‘Excess Distance’; ‘If the vehicle is returned to us (whether at the end of the period hire or an earlier termination), we will calculate the total distance travelled by the vehicle whilst in your possession (the “Total Distance”)’.
Your mileage allowance has therefore been re-calculated on a pro-rata basis in line with the length of time you have had the vehicle in your possession.
I would also like to kindly refer you to S99 (2) Consumer Credit Act 1974 where it states:
‘Termination of an agreement under S (1) does not affect any liability under the agreement which has accrued before the termination.’
As your agreement was subject to a mileage allowance prior to termination and you have exceeded the allowance of miles, the charge has been raised correctly and remains payable.
The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative effect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement
Should you have any further queries, please do not hesitate to contact one of our advisors on 0370 240 1110. Calls to our numbers starting 03 will cost no more than calling 01 and 02 numbers.
Any suggestions on how I should proceed moving forward?
I have recently submitted a voluntary termination with MBFS using the templates on the forum. The car was in excellent condition with no remarks for damage. However, one factor was that the mileage allowance was exceeded by circa 40,000 miles.
The initial MBFS response dated 29/10/2019 was:
Further to your recent email received by our offices, Whether you are returning your car at the end of your agreement or upon use of the Voluntary Termination (VT) clause, as you have not exercised your right to purchase the car, an excess mileage charge will be raised should your return mileage exceed your total mileage allowance. This obligation is set out within the first page of your agreement, under key information. The provisions of the Consumer Credit Act that cover a customer’s right to VT their agreement do permit us to include any over mileage when determining what is 'not reasonable' upon the cars return. It is stated in your agreement under ‘Excess Distance’; ‘If the vehicle is returned to us (whether at the end of the period hire or an earlier termination), we will calculate the total distance travelled by the vehicle whilst in your possession (the “Total Distance”)’.
Your mileage allowance has therefore been re-calculated on a pro-rata basis in line with the length of time you have had the vehicle in your possession.
I would also like to kindly refer you to S99 (2) Consumer Credit Act 1974 where it states:
‘Termination of an agreement under S (1) does not affect any liability under the agreement which has accrued before the termination.’
As your agreement was subject to a mileage allowance prior to termination and you have exceeded the allowance of miles, the charge has been raised correctly and remains payable.
The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative effect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement
Should you have any further queries, please do not hesitate to contact one of our advisors on 0370 240 1110. Calls to our numbers starting 03 will cost no more than calling 01 and 02 numbers.
I since responded to them with the template letter on the forum, mentioning the provisions of S99 (2) and the recent MBFS court case, their response to this letter dated 6/11/2019 was:
Further to your recent email received by our offices, please find attached a copy of your appraisal stating the mileage on the vehicle when returned.
Whether you are returning your car at the end of your agreement or upon use of the Voluntary Termination (VT) clause, as you have not exercised your right to purchase the car, an excess mileage charge will be raised should your return mileage exceed your total mileage allowance. This obligation is set out within the first page of your agreement, under key information. The provisions of the Consumer Credit Act that cover a customer’s right to VT their agreement do permit us to include any over mileage when determining what is 'not reasonable' upon the cars return. It is stated in your agreement under ‘Excess Distance’; ‘If the vehicle is returned to us (whether at the end of the period hire or an earlier termination), we will calculate the total distance travelled by the vehicle whilst in your possession (the “Total Distance”)’.
Your mileage allowance has therefore been re-calculated on a pro-rata basis in line with the length of time you have had the vehicle in your possession.
I would also like to kindly refer you to S99 (2) Consumer Credit Act 1974 where it states:
‘Termination of an agreement under S (1) does not affect any liability under the agreement which has accrued before the termination.’
As your agreement was subject to a mileage allowance prior to termination and you have exceeded the allowance of miles, the charge has been raised correctly and remains payable.
The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative effect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement
Should you have any further queries, please do not hesitate to contact one of our advisors on 0370 240 1110. Calls to our numbers starting 03 will cost no more than calling 01 and 02 numbers.
Any suggestions on how I should proceed moving forward?
