Voluntary termination - coming after xs mileage even though "nothing more to pay"

[Marc]

Please Help!

I have Voluntary Terminated my finance agreement as per Section 99 of the CCA 1974 which was agreed by Alphera BMW as over half the payments had been made. I have some experience of this having done this before successfully with nothing further to pay. I have also taken out a new lease with Alphera on a new car and was hoping they would take a sensible approach.

Their agreement stipulates stipulates 7.5p per mile excess mileage under their key information, but then refers you to "Termination: Your Rights" paragraph on the very same page.

I'm very aware of the wording: "You have the right to end this agreement etc etc..........If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."

The condition report for the vehicle agreed that I had taken reasonable care of the goods, and I therefore had nothing further to pay in this regard.

However, they are going after the excess mileage of 10,000.

I've had this out on the phone with several managers and they are playing hardball even though it is clear to them I'm no shrinking violet!

I made them aware that I know why they try to enforce the excess mileage provision because they are a business, in the knowledge that most people will be scared into paying.

But have told them I had taken advice prior to going through the process from CAB and Trading Standards.

I said that the protection given to me under the consumer credit act and clearly stated in their own contract says "nothing more to pay" and NOT "nothing more to pay EXCEPT excess mileage!!!"

I pointed out that they are trying to say that the part of the contract about excess mileage that they want to adhere to superseeds Government statute put in place to protect consumers. How can their contract over-ride statute? I did sign the contract, but that contract also affords me protection under law!?

I then said that they wouldn't be pursuing me for the money, but technically challenging what is written in law by the Government.

They then said that the credit act assumes I have abided by the contract and that the mileage is due.

I believe I have abided by the contract, I have paid over half the money owing and I have taken reasonable care of the goods as proved by the vehicle condition report and their acceptance of my request for Voluntary Termination.

I don't believe they can have it both ways.

Has there been a test case in court by any finance company, I can't believe they would have the appetite for the legal fees for the sake of £750.

My one worry is that they will send bailifs etc before we test it in court somewhere?

I uphold that if the Government says I have nothing more to pay, and their contract includes and abides by Section 99, I do have nothing more to pay, however contradictory their policy wording seems.

Any advice on how to talk some sense into them, or an example of a successful test case would be most appreciated.

Thanks in advance
Marc

[labman]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

Was this a straightforward HP agreement or a PCP?

[Guest]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

section 100(4) of the CCA merely says that reasonable care must have been taken of the goods, there is a a danger that this can be interpreted as the standard yearly millage usage of between 10 and 12 k a year.

If the court interprets this in this way then any access mileage charge would not be contrary to the statute and be due on termination of the vehicle, although the amount chargeable can be disputed and if excessive challenged, under the UTCCs,

[Marc]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

Thanks for the reply, my agreement says hire purchase at the top. I had a balloon option at the end if that makes a difference from a straight hire?

[labman]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

Normally where there is a balloon payment, (Personal Contract Purchase), the balloon payment is based on an estimated residual value at the end of the agreement where you can trade it in, or pay the balloon payment and own the vehicle outright. It is a Conditional Sale Agreement so governed by the CCA.

It is normally reasonable to expect to pay an excess mileage charge in these conditions, and you would have agreed the annual mileage at the time of purchase. They should be worked out on a pro rata basis normally.

[aadams1x]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

Just wondered what the outcome of this was Marc?

[Guest]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

Normally where there is a balloon payment, (Personal Contract Purchase), the balloon payment is based on an estimated residual value at the end of the agreement where you can trade it in, or pay the balloon payment and own the vehicle outright. It is a Conditional Sale Agreement so governed by the CCA.

It is normally reasonable to expect to pay an excess mileage charge in these conditions, and you would have agreed the annual mileage at the time of purchase. They should be worked out on a pro rata basis normally.

Yes that is correct. If the agreement is terminated under the contractual provisions of the PCP the contractual conditions concerning annual mileage should apply.

However if terminated under the CCA section 100 of the act applies which ways only that reasonable care must have been taken of the goods

[aadams1x]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

Yes that is correct. If the agreement is terminated under the contractual provisions of the PCP the contractual conditions concerning annual mileage should apply.

However if terminated under the CCA section 100 of the act applies which ways only that reasonable care must have been taken of the goods

My last car I VT'd and I was well over the prorata mileage and nothing was done, this was with Santander, i now have a deal with this company not sure what to expect, it seems there is no clear yes or no as read many threads including one where the company tied to charge excess mileage and the person stated the "Nothing more to pay" part of the agreement and they instantly backed down and cancelled the bill...

[Tyglover]

Re: Voluntary termination - coming after xs mileage even though "nothing more to pay"

My last car I VT'd and I was well over the prorata mileage and nothing was done, this was with Santander, i now have a deal with this company not sure what to expect, it seems there is no clear yes or no as read many threads including one where the company tied to charge excess mileage and the person stated the "Nothing more to pay" part of the agreement and they instantly backed down and cancelled the bill...

Well mercedes dont take that view they are asking for 4500 and have handed to debt collector! Advice?