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Re: Jon0910 Voluntary Termination & Mileage Issues
First of all, section 101 refers to hire agreements not hire purchase/conditional sale agreements so that is not applicable. s.101(4) relates to not taking reasonable care of the goods, where's the proof that the excess mileage means the goods weren't reasonable taken care of? if the car has already been sold at auction i highly doubt they're going to have any proof at all. Ping off a letter of something like the below to them or to suit your needs, they probably know they cannot enforce any excess mileage charges and they will no doubt continue to harass you for the money and make you think you owe it, but as you have VT'd your agreement, there is nothing they can do.
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Dear Sirs,
I write in response to your email/letter dated [ ].
I'm afraid your knowledge on the Consumer Credit Act appears to be somewhat lacking in relation to a consumer's right to terminate the agreement. Might I also point out that your reference to s.101(2) is not applicable, as the section specifically refers to hire agreements; the agreement taken out was a hire purchase/conditional sale agreement.
s.100 outlines the liability of the debtor on terminating the agreement in accordance with s.99 of the Act. Provided that half the total price payable under the agreement has been reached, the debtor's liability is restricted to that amount. I refer you to the definitions of the Act under s.189, more specifically the definition of "total amount". As you will note, total price is defined as a sum payable under the agreement but excluding any sum as a penalty or as compensation or as damages for breach of the agreement. You will also notice that the total amount payable under my agreement is [£ ], and therefore half of the total amount payable equates to [£ ]. The total amount payable does not include any charges for excess mileage, I have paid half of the amount in accordance with ss.99-100 and I am therefore under no further obligation to pay any further monies to you. Furthermore, the excess mileage charge forms part of the contractual agreement and although you may argue that this is a breach of the agreement, the Act specifically excludes any penalties, compensation or damages as part of the total price for the purposes of terminating in accordance with s.99 of the Act.
To further clarify matters, in First Response v Donnelly the judge confirmed that where a debtor exercises their right to terminate the agreement in accordance with s.99, the liability of the debtor will be limited to the amount set out under s.100(1), namely one half of the total amount payable and in this case, [£ ].
I also note that you appear to rely upon s.100(4) alleging that I have failed to reasonably take care of the vehicle. You have yet to supply myself with any substantial evidence which shows that the car was not returned to yourself in a reasonable condition. As such, if it is your intent to rely on this particular section, please provide me with the relevant documentary evidence that the car was not in a reasonable condition in relation to the excess mileage.
In light of the above, it would appear that your interpretation of the Act is simply incorrect and for the reasons set out above, please treat this letter/email as my final position on the matter. I do not intend to correspond any further unless it is your intention to commence legal proceedings, which I shall defend in full. I confirm that I accept service of proceedings to the following address [ ].
Please note that should you continue to contact me requesting payment without any intention of issuing proceedings, this shall be deemed harassment and I will consider taking further action and or measures against RMS Receivables as a result.
Yours faithfully
Originally posted by WAL
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First of all, section 101 refers to hire agreements not hire purchase/conditional sale agreements so that is not applicable. s.101(4) relates to not taking reasonable care of the goods, where's the proof that the excess mileage means the goods weren't reasonable taken care of? if the car has already been sold at auction i highly doubt they're going to have any proof at all. Ping off a letter of something like the below to them or to suit your needs, they probably know they cannot enforce any excess mileage charges and they will no doubt continue to harass you for the money and make you think you owe it, but as you have VT'd your agreement, there is nothing they can do.
------------------------------
Dear Sirs,
I write in response to your email/letter dated [ ].
I'm afraid your knowledge on the Consumer Credit Act appears to be somewhat lacking in relation to a consumer's right to terminate the agreement. Might I also point out that your reference to s.101(2) is not applicable, as the section specifically refers to hire agreements; the agreement taken out was a hire purchase/conditional sale agreement.
s.100 outlines the liability of the debtor on terminating the agreement in accordance with s.99 of the Act. Provided that half the total price payable under the agreement has been reached, the debtor's liability is restricted to that amount. I refer you to the definitions of the Act under s.189, more specifically the definition of "total amount". As you will note, total price is defined as a sum payable under the agreement but excluding any sum as a penalty or as compensation or as damages for breach of the agreement. You will also notice that the total amount payable under my agreement is [£ ], and therefore half of the total amount payable equates to [£ ]. The total amount payable does not include any charges for excess mileage, I have paid half of the amount in accordance with ss.99-100 and I am therefore under no further obligation to pay any further monies to you. Furthermore, the excess mileage charge forms part of the contractual agreement and although you may argue that this is a breach of the agreement, the Act specifically excludes any penalties, compensation or damages as part of the total price for the purposes of terminating in accordance with s.99 of the Act.
To further clarify matters, in First Response v Donnelly the judge confirmed that where a debtor exercises their right to terminate the agreement in accordance with s.99, the liability of the debtor will be limited to the amount set out under s.100(1), namely one half of the total amount payable and in this case, [£ ].
I also note that you appear to rely upon s.100(4) alleging that I have failed to reasonably take care of the vehicle. You have yet to supply myself with any substantial evidence which shows that the car was not returned to yourself in a reasonable condition. As such, if it is your intent to rely on this particular section, please provide me with the relevant documentary evidence that the car was not in a reasonable condition in relation to the excess mileage.
In light of the above, it would appear that your interpretation of the Act is simply incorrect and for the reasons set out above, please treat this letter/email as my final position on the matter. I do not intend to correspond any further unless it is your intention to commence legal proceedings, which I shall defend in full. I confirm that I accept service of proceedings to the following address [ ].
Please note that should you continue to contact me requesting payment without any intention of issuing proceedings, this shall be deemed harassment and I will consider taking further action and or measures against RMS Receivables as a result.
Yours faithfully
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