VT-Mercedes Benz Help Please

[Bgatty68]

Hi to you all,
I recently exercised my right to VT a Mercedes A Class, approx April 2019. Now after a lot of backwards and forwards between myself and Mercedes Finances, and with me offering to drop the car off at a dealership or of a place they would prefer they ignored me for a few months, until one day I sent the log book off and put them as the new owners.
After a few lies (from them) saying they hadn't received any letters from me requesting a VT, I then explained I had sent the letters via tracking with Royal Mail and hey presto yes they did have the letters but had misplaced them. They are trying to charge me £1285.98 for excess mileage and £640 for damage. Now the so called damage which I dispute as I have pictures of the car in pristene condition, in my opinion is when they dragged the vehicle on to a low loader, which my Wife took pictures of.
Fast forward to today and I have received a letter from a debt collecting agency DLC for the total sum................... Where do I stand legally as I didn't think the excess mileage costs they are trying to charge me would stand up legally, please advise me of my next step.
Thanks in advance Brian

[Dodge1979]

Hello, I too am in this situation. Have written to MBFS in june to exercise my VT, they denied having recieved any notifications from me about it (after I chased them a month later saying I would sell the vehicle on as an abandoned goods). The vehicle was collected, no damage whatsoever. I recieved an invoice for some £1400 of excess mileage charges, which I have disputed as being not valid for a VT. Their argument is that the vehicle is devalued because of this and they have to be compensated as such.
Unfortunately, due to having lost my job etc several months before my VT I had fallen behind in payments. I had caught up all except the one payment before I sent off my VT. The fact they claim not to have recieved notification means they claim I owe an additional monthly payment, so 2 payments. I had paid more than 50% of the amount due under the agreement even before the last defaulted payment.
I've recieved a DCA letter claiming £1400 now from them for this monthly payment in addition to the excess mileage charges.
I am currently unemployed with no income bar UC, and now they are saying it's been handed over to their solicitors.
As I understand it, under VT my only obligation is to have paid 50% irrespective of any monies owed still, prior to VT. Also, I understand VT overwrite the terms of the contract under which they are claiming I owe excess mileage charges.
Does anyone have any more thoughts on this?

[R0b]

The link below should tell you all you need to know. I suggest you come back to us when you receive a letter before action from their solicitors. Otherwise, browse the Vehicle Finance and Issues sub-forum you will find plenty of information.

https://legalbeagles.info/forums/for...larke-pls-help

[Dodge1979]

Thanks funnily enough I've just read through all of that after putting my above post up excellent work there. And yes its Mortimer Clarke that I'm being told that my "...file is being prepared to be passed onto.."
I'm happy to fight the fight,....

[R0b]

I would suggest you make a separate thread when you engage with Mortimer Clarke so that everything is kept in one place.

[Bgatty68]

Thanks for the reply Rob and a great site by the way.
Are you saying that I shouldn't do anything until I get a letter from their solicitors?
As I just received this email from them on Friday 15th November;
Is what they are saying correct or are they just trying to continue to scare me into paying up?

Brian


PRIVATE & CONFIDENTIAL




Registration Number: blanked out


Agreement Number: blanked out





Dear Mr...............................





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, 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.



Kind regards
Joshua

[Bgatty68]

Hi Rob,
Could you advise me if I should make contact with DLC the debt collection company at all
Kind Regards Brian

[R0b]

Thanks for the reply Rob and a great site by the way.
Are you saying that I shouldn't do anything until I get a letter from their solicitors?
As I just received this email from them on Friday 15th November;
Is what they are saying correct or are they just trying to continue to scare me into paying up?

I'm not saying you should do anything, you can of course respond to them but it depends if you like getting into a game of ping pong. If that's not what you want to do then a polite short response saying that you have already set out your position and will not be engaging any further unless legal proceedings are contemplated. Otherwise, in a less than polite fashion, quit harassing you.

I can't give you a definitive answer on this because there is an legally binding authority. There is a non-binding County Court case which I have already directed you to, so there is some legal support to suggest the answer is no.

Does that mean that excess mileage will never be recoverable? I would say no, because there are ways I can think of which would legally entitle lenders to recover excess mileage charges but as it stands currently, I don't believe they can, and neither did that judge who found against Mercedes.

I can only offer appropriate information and opinion, it is up to you how much weight you attach to it.

[Bgatty68]

Much appreciated information on your reply Rob. Thanks so much and I will post any replies from Mercedes or their solicitors etc to keep this post updated.

[Bgatty68]

Morning Rob
So I have received a letter from Mercedes Benz solicitors-Mortimer Clarke- as expected* and the person I spoke to was totally unaware of all the previous issues I have been having, including the car being dragged onto a low-loader and the company coming to my house at 6.45am. They were also unaware of Mercedes saying my original letters sent to them for my VT being lost until I said it was sent by registered letter, and they were also unaware of Mercedes wanting to charge me for damage to all 4 wheels but then saying they would accept only damage to 2 wheels as a good will gesture etc etc.
So now their solicitors have put the case on hold as I said to the person I had enough evidence to support my case at court, so now they are asking for all my correspondence between myself and Mercedes from when I activated my rights for a VT and all photos of the car and photos of the car being put onto the low-loader.
Rob please could you advise me if I should send them everything I have as it then seems if they still insist on taking me to court for the excess mileage I feel I don't have anything in my corner-so to speak- to surprise them in court and it feels like I am showing them my full hand, or am I looking too deep into what they are after. Also to be honest the person who sold me the car said in regards to the excess mileage that to ignore the mileage as Mercedes offer cars this was to keep payments low and entice people into taking cars out like this.

Regards Brian

[R0b]

Personally, I would be reluctant to hand over all information that you have. If I was in your shoes, I would go back to Mortimer Clarke and tell them that it isn't your job to clean up their client's mess and everything you have in your possession Mercedes also has so they should be seeking that information from their client, not yourself and if they want to test their luck in court, they can go right ahead and the evidence will be presented. If their client is being economical with the truth then that's a conversation between Mortimer Clarke and Mercedes.

Like I said above, I can' tell you what you should or shouldn't do so the choice is yours, either you pay up now or you don't hand over the information and defend it knowing that there could be legal proceedings issued. If you don't have the stones to defend this all the way to a hearing or you crumble under the pressure, best to pay up now rather than incur further costs trying to settle at a later stage.

You are on notice now that they've instructed solicitors so if you are going to defend it then you need to gather all of your evidence ready to draft your defence if it comes to that. Just a reminder, you only get out what you put into it and many people make the mistake of putting in very little, and then wonder why they lose their case.

[Bgatty68]

Thanks Rob, Much appreciate the advice and to be honest it is the answer I was hoping for, as you are right Mercedes did have all the information and they have been very economical with the truth.
I will update as and when the case continues.
Regards Brian