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VT paragon chasing for excess mileage and fair wear and tear

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  • VT paragon chasing for excess mileage and fair wear and tear

    Good morning

    Iím hoping someone can help. I have (actually in my wifeís name) voluntary terminated my finance agreement with a. Company called paragon. The 50% of payments have been made and the car has been collected and returned. I have informed the DVLA that I am no longer the owner and cancelled my direct debit.

    Paragon arranged for Crystal collections to appraise the car on my drive and collect the vehicle. The appraisal claimed £481 of costs needed paying for damage. These were all light, small scratches that I would argue are absolutely to be expected for a vehicle that was 5 years old (Ive had for 3 years) and I have attached the appraisal doc. I explained I wouldnít be paying those costs as I deemed them fair wear and tear, and instructed them to proceed with the collection and return which they did.

    I have since been contacted to be told that I owe £6137 for excess mileage. Iíve apparently averaged 12,000 miles more per year than my agreement. This is I agree slightly excessive, but to be honest I donít know the original mileage that they have stored is correct (not do I have proof that it isnít) and I did have every intention of dramatically reducing mileage over the last couple of years of the agreement due to a change in jobs (I already had reduced over the last year)

    I have emailed to explain that as far as Iím concerned I have fulfilled my obligations by paying 50% and that I am not required to make any further payments. Paragon have called me 3 times in 3 days and have been pushing for details around my financial hardship, insinuating that they might be able to clear my debt if I can explain my situation and give a suitable sob story it seems. I donít see why I should have to discuss my personal circumstances, as the VT option should be enough. They have conceded they will not take legal action over this. However they have insisted that these charges £6618.18 will remain on the account as unpaid and my wifeís credit rating will be affected

    Can I fight this? I feel that they know they wouldnít win a legal battle (am I right) and thatís why they wonít pursue, but theyíre using bully tactics to intimidate us into paying something and my wifeís credit rating will be severely affected, which in turn will affect our remortgage options down the line etc?

    Many thanks in anticipation of any help that can be provided

    Tags: None

  • #2
    This was the first email I sent them
    Good evening
    I write in reference to your letter dated 15th February 2021.
    Iím surprised that you have requested payment for items that you can not legally request upon action of a voluntary termination. I have needed to VT due to financial hardship (my husband who makes these payments is currently furloughed and has had severely reduced pay for most of the last 12 months)
    Quite frankly I find your letter deeply distressing. You must be aware that there is no legal right to charge for fair wear and tear or excess mileage at the point of Voluntary termination. There is actually legal precendent for this in a case dismissed against mercedes if you wish to look into it. The light scratches indicated in the asset inspection could never reasonably be considered anything more than fair wear and tear for the age of the vehicle. Iím not aware of the original mileage you have stated for the vehicle but I had always intended to reduce my mileage considerably over the tail end of the agreement due to a change in jobs, which would level out the mileage and give a much lower annual mileage before the conclusion of the agreement. Unfortunately due to financial hardship I was not able to complete the agreement and therefore the mileage is slightly higher than I would have anticipated. I wouldnít expect for you to try and bully me into further payments when I have exercised a clause that exists for the sole purpose of protecting me during this exact scenario of financial hardship. I have kept the vehicle duly serviced and MOTíd throughout and taken good care of it. I even recently had it valued and it was confirmed that it would reach a sale value of similar cars of a similar age.
    Based on all of the information above I reject your charges and will not pay anything more. I have completed 50% of my finance payments and have returned a car that is in very good condition considering itís age.
    I would appreciate you ending this period of undue stress and anxiety by writing to confirm that the agreement is now ended and no further payments are expected. Please do so by reply all to this email


    • #3
      Second email

      Good morning

      Following a conversation this morning Id like to make a formal complaint and ask that you reconsider your stance which is causing considerable distress.

      I have voluntary terminated my finance agreement. As part of exercising that clause as you will know, I am not required to pay anything other than 50% of my finance payments by law. This law supersedes any other contract clauses contained within the finance agreement. I do not need to go into details regarding our financial situation to exercise that clause. However Iím being asked repeatedly to describe my financial situation & itís being dangled in front of me as a carrot to potentially dismiss unfair charges for fair wear and tear and excess mileage charges and apparently without this information the operations manager can not consider removing these fees and my credit rating will be affected. Why would you seek to deliberately affect my credit rating and my families future because I wonít share private details, when all I have done is exercise my legal right to voluntary terminate my finance? A clause that by law should mean that I can walk away from this finance without any further payments to make, now that I have paid the considerable amount of 50%?

      In my opinion this is intimidating and causing undue stress. Iím already embarrassed and upset that I have had to return my car, and now you want to further embarrass and intimidate me into sharing my personal financial situation, when there are no legal grounds for pursuing any other fees relating to my finance of this vehicle.

      I am now requesting that you reply in writing within the next 7 days to confirm that you will write off any charges relating to excess mileage and wear and tear, and not seek to contact myself or my husband other than to confirm that, or I will look to instruct a solicitor to protect us from your harassment and unfair practice, and claim damages for the stress and anxiety it is causing, along with any damage to our reputation and future credit applications.

      I really hope that you can have some humanity in this situation and end this futile pursuit for monies which you know you have no legal right to pursue


      • #4
        And the attached appraisal - sorry for posting like a total amateur and I hope this is clear enough to view Vehicle appraisal - Jag.pdf


        • #5
          I have just handed back my car with paragon, how long after yours was taken did you get the excess mileage bill?


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