Mini (BMW) PCP

[Jamie1989]

Hi all,

So here's the problem. I have had a PCP with mini finance since 2017 and have had no issues making each payment.

July 2019 I had an epileptic seizure and this means I have had to surrender my licence for 1 year (and will get it back after this period) the Doctor has already said as much.
With this I informed Mini in July 2019 to see if there were options of doing voluntary termination of contract but the amount left to pay (because I wasn't half way didn't suit) there were no other stipulations from them and I have continued to pay this (again no issues)

Fast forward to yesterday and I've had a letter from their collections team issues a statement of intent to shortly issue a notice of default???

Checked my credit profile and I'm 100% up to date with payments and never missed one. They state in the letter that I'm in breach of contract for not currently holding a licence but the agreement I've got and read through doesn't state anything about maintaining a licence...
I'm intending to complain and take this to the ombudsmen but my initial concern is whether a default notice is enforceable and if so is this a traditional one? As I haven't missed a payment!!

Thanks in advance


R0b*Docs now uploaded and sent to you*

[R0b]

Hi,

Think we need to see this letter from collections, and probably helpful to see the terms and conditions of your PCP too and we can double check there isn't anything in there that could hold you in breach.

If there really isn't a term in the contract that says you must have a valid licence throughout the hire period then you will be home and dry and if Mini issue a default notice then terminate the agreement, they will be in breach and you can claim damages for wrongful termination. In this instance I think you would be entitled to compensation equivalent to at least the remaining instalments that remain, plus the car itself taking into account the car could have been purchased.

Sometimes honesty is not always the best policy and if you avoided the reason why you wanted to terminate the PCP you probably wouldn't have been in this position! Making a formal complaint might not necessarily prevent the default notice from being issued and Mini claiming to terminate the agreement.

What is the outcome you want?

[Jamie1989]

Thanks for replying R0b* will send over the redacted copy later. But unless I've missed something I'm confident that the CCA agreement makes no mention of a licence being required throughout. I'll also send the letter over. (I've used PDF search function to check for any key words that would suggest as much and the clauses in there make not reference either)

The car is still insured and SORN declared also. In terms of what I want, I want to just continue paying the costs as VT doesnt seem reasonable as I dont want to pay 3K to terminate and can afford the monthly installments.


I'll message again later today and perhaps you can help.

[R0b]

I had a look at you terms and conditions and I couldn't see anything specific about saying you must have a valid driving licence throughout the agreement. However, if there is anything that might catch you out, then it's probably going to be clause 5 because it says you must be covered by the insurance policy to drive the vehicle until the vehicle is returned or ended. It does go on to talk about notifying them about disqualification (which is not the same as revocation) or any other reason you are no longer insured under the policy. It also says they're entitled to see the policy on request so be aware of that.

Their letter hasn't actually stated what clause you are deemed to be in breach of, and it might be a wise decision to wait and see what the default notice actually says, because if they don't state what clause you are in breach of and terminate the agreement on that basis, then Mini could be in breach themselves for wrongful termination.

Obviously if you go complaining now, then you might tip them off and that would give them reasonable cause to ensure they have a way to terminate the contract properly and lawfully.

What does the terms of your insurance policy say about revocation of driving licence, does the policy automatically terminate as you may be in breach of that if you haven't informed them.





*

[Jamie1989]

R0b*

thanks for the response. So the good news is my insurer is happy to cover me. (DL) if it helps anyone else and they were incredibly helpful also in supporting me with this.


I went back to the collections team to advise of this and that I have a certificate of motor insurance to confirm this.

surprise surprise this wasnt good enough and they want a customer written letter explaining the insurer is aware and happy to insure. Again they were very helpful in supporting me with this and wrote the letter while I was on the phone.

I'm waiting for the letter in the post and will let you know the outcome once they have reviewed as much view is that if they still say they aren't happy, then as you say I'm not in breach and have provided the necessary information to confirm as much so they would be in breach.


thanks and speak soon

[R0b]

As long as you have written evidence that your insurer is happy to continue the policy in light of the circumstances then I think you are probably on solid ground. Remember, it's up to the finance company to prove that you were in breach of contract and the default notice should reflect which provision of the contract that you have breached.

I don't think there is any point in entering into protracted discussions because these collections advisors are just low level employees, so if they don't accept what you've provided and go on to terminate the contract, then that's not your fault and likely to be their breach and loss, not yours.

[Jamie1989]

Custom**

[Jamie1989]

***UPDATE****
R0b*

Mini have dropped the case. As I was able to prove comprehensive insurance with my provider and that they were happy to continue this on the basis of not having a driver's licence.*
there insurer were very flexible with this and because the was an additional party on the policy it made it more viable.*

[R0b]

Thanks for updating us, this is good news but a bit irritating I'm sure to be put through all of this.