Aftermath of Voluntary Terminating Vehicle with Ford Finance

[Shanace2002]

Hi all,

I need advice please. I voluntary terminated my vehicle with Ford on 12th February - vehicle was nearly 3 years old (had it from new on PCP). The inspection report went fine no problems. I received a letter from Ford Finance trying to charge me hire charges from the date of my last payment on 2nd February to 12th February. I had paid well over the 50% mark (about £900 over). My understanding is that as long as you have paid at least 50% of the total amount repayable, payments re up to date, there is nothing more to pay.

I wrote to Ford and quoted the Consumer Credit Act etc and got a letter back that was gobbledygook, setting out the factual background to signing the agreement with Ford and to Voluntary Termination conditions etc mileage etc... They then concluded that I am liable for the £100 hire charges on the vehicle and that my file has now been passed on to a debt collector for chasing. There was no explanation as to why I am responsible for such payments. I stated to them that my contract with them was a PCP with a balloon payment at the end should I wish to purchase the vehicle and it was not a Hire Purchase Contract and asked them for an explanation as to why they are trying to charge me. No other finance companies charge hire charges on PCP.

I dispute paying the charges they are trying to get out of me and feel that I should not be paying it. Should I task the complaint to the Financial Ombudsman? Its not fair that I have paid all my installments for the last 2.5 years and they are now threatening to tarnish my credit report for £100 which I feel I should not be liable.

Thanks

[R0b]

Probably need to see what Ford have said in their response to you rejecting the hire charges. It would also be helpful if you can upload a copy of the PCP terms and conditons (personal info redacted) and then will be able to work out the position.

As a general starting point, liability is limited to 50% of the total price and once you've paid that, you are not obliged to pay anymore. Irrespective of what the terms and conditions say about mileage, pro-rated instalments, none of that will override what the CCA says. Of course, if they tarnish your credit file over £100 and they get it wrong, then you are entitled to take legal action and seek compensation for their negligence as well as asking the court to order them to amend your credit file os the adverse entryis removed.

You can go to the Ombudsman but that's only if Ford have provided a final decision; if they have not, then you have to allow them up to 8 weeks to respond and tehn probably the same amount of time if not longer once you submit your complaint to the FOS as they are severely backlogged with work.

Another option is to sit tight and see whether Ford actually follow through with reporting the balance on your credit file and then start legal action with a view to issuing legal proceedings.