Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

[Guest]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Labman is correct the CCA only says that "reasonable care" must have been taken of the goods. The industry standard annual millage is between 10 and 12K.

You can argue that the charge is excessive and an unfair term under the UTCC regulations. Motorbility for instance charge 5p per mile, at the end of the day they have to be able to enforce the charge, so perhaps a degree of horse trading may be in order. Whatever the situation they cannot halt the VT, any extra charges will have to be invoiced after the termination is completed.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Labman is correct the CCA only says that "reasonable care" must have been taken of the goods. The industry standard annual millage is between 10 and 12K.

You can argue that the charge is excessive and an unfair term under the UTCC regulations. Motorbility for instance charge 5p per mile, at the end of the day they have to be able to enforce the charge, so perhaps a degree of horse trading may be in order. Whatever the situation they cannot halt the VT, any extra charges will have to be invoiced after the termination is completed.

I know i can do the VT but what i dont want to do is end up with them asking for thousands of pounds for excess mileage after and them taking me to court for it.

[labman]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

How long have you owned the car?

How many miles have you covered in it during that time?

We'll have some idea about the magnitude of this issue then.

[Guest]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I know i can do the VT but what i dont want to do is end up with them asking for thousands of pounds for excess mileage after and them taking me to court for it.

I think what you are looking for is something within the legislature that prevents them making an access mileage charge, I am afraid there is nothing. It is purely down to the contract, as said a court would probably consider 12k a year as "reasonable care", so then you are arguing enforceablity of the amount of access charge.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

How long have you owned the car?

How many miles have you covered in it during that time?

We'll have some idea about the magnitude of this issue then.

I have had the car since Dec 2010 and done 77k miles

[labman]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have had the car since Dec 2010 and done 77k miles

This would average just over 2265 miles a month, or if you say an 'normal' average is 12000 per year, you would have covered 34000, so you are 43000 miles over the 'normal' average. At 15p per mile, this would cost you £6450.

I think you need to look at T&C's of your contract carefully and weigh up what this could potentially cost you. IMO they may have a strong argument that this is beyond 'reasonable' as it is more than double the normal average. However, also IMO, I think they would find it hard to justify their mileage charge (except you agreed to it in signing the agreement) - as the car is unlikely to be worth that much money now. Thus you get into negotiations.

You understand they cannot stop you VT'ing, whatever the case, and that any excess charges could go into a Debt Managment Plan to be paid over a period of time, especially if you have other debts. If your credit record is good, then you may not want this against you. You are then left with three options, don't VT; VT and pay what they ask or VT and negotiate over the mileage charge.

Beyond pointing out your options, I don't know what more we can do to help, but do post up if you think we can help. :beagle:

[Guest]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Yes I think you need to have a look at your agreement. If you do not have it you can request one under section 79 of the Consumer credit act, the request will cost you £1 and they should respond within 14 days.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Yes I think you need to have a look at your agreement. If you do not have it you can request one under section 79 of the Consumer credit act, the request will cost you £1 and they should respond within 14 days.

I have my HP agreement and it does not state a mileage charge anywhere in it, Motonov are saying it is in their Terms and conditions which weren't with the HP agreement. They have said its their terms and conditions and they can always send me a copy.

It is definitely not in the HP agreement terms which i signed, I have not signed their terms and conditions.

[labman]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Are you 100% sure you were not supplied with a copy of the T&C's at the time of taking out the agreement? Are you able to post up a redacted copy of what you were given so we can see it?

Thanks.

[Guest]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have my HP agreement and it does not state a mileage charge anywhere in it, Motonov are saying it is in their Terms and conditions which weren't with the HP agreement. They have said its their terms and conditions and they can always send me a copy.

It is definitely not in the HP agreement terms which i signed, I have not signed their terms and conditions.

If theses terms were not with the agreement when it was signed they are not enforceable(section 61(b) CCA.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Are you 100% sure you were not supplied with a copy of the T&C's at the time of taking out the agreement? Are you able to post up a redacted copy of what you were given so we can see it?

Thanks.

I have the agreement, how would i put it on here? Scan it and attach?

[labman]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have the agreement, how would i put it on here? Scan it and attach?

Yes, that's fine - remove your details first. To attach, click 'Go Advanced' then 'Manage Attachments' and browse and upload. Once it disappears from the upload window, that one is attached and you can do the next. You may not see them attached until you actually click Post Reply or whatever it says. Don't worry, they should be there. It they're not, pm Celestine and Amethyst and one of them will be in touch to sort it out for you.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Yes, that's fine - remove your details first. To attach, click 'Go Advanced' then 'Manage Attachments' and browse and upload. Once it disappears from the upload window, that one is attached and you can do the next. You may not see them attached until you actually click Post Reply or whatever it says. Don't worry, they should be there. It they're not, pm Celestine and Amethyst and one of them will be in touch to sort it out for you.

Please see attached I have 1 more to attach

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Final scan of the papers I was given

[Guest]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Nope there is nothing on there.

If it were me I would contest the charge, you are not going to stop them asking for it, however you could say that you were not informed of the amount of liability due to the millage which you normally do and if you hed been informed you would not have entered into the agreement.

There is normally an amount of letter tennis after VT's, creditors demand payment due, debtor deny that they owe, usually it is just a matter of sticking to your guns.
I would say that you had a good case to withhold payment, since it is clear that they have no contractual right to charge the amount they are claiming.

If it were me I would get the car back and wait for the bill and then contest it.