Ford Option - VT Excess Mileage Reply

[mike1990]

Hi,

I recently voluntarily terminated my agreement with Ford options and returned the car after paying over 50% of the payments. After which I was quoted what I "owed" them in pro-rata'd repayments for the final applicable month (which I paid) plus excess mileage fees (which I disputed).

After looking through these forums and using the letter templates (thank you very much for all your help), Ford Options finally came to the decision that I STILL owe them the excess mileage charge of £429.

Looking through their letter, the basis for their claim seemed to be that in Page 1 of the agreement, under the excess mileage section, it states:

"Note: if this agreement ends early for any reason, we will proportionately reduce the Approved Annual Mileage for the purpose of the calculation of excess mileage".

So do they have me over a barrel with this note in the agreement? The letter states:

"The CCA 1974 stipulates that although the hirer has the right to Voluntary Terminate a hire purchase agreement, they will remain liable for any liability which has accrued before the termination."

The only way I can think to argue this is to try and state that even including the excess mileage charge, I have still paid over 50% of the payments, meaning this shouldn't be classed as a separate liability. Any advice or help would be greatly appreciated. Obviously my next step would be to go to the FOS.

Thanks
Mike

[R0b]

Re: Ford Option - VT Excess Mileage Reply

Its a term of the contract and your liability prevails over it - it did not accrue until after the termination and became aware of the mileage. The accrued liability only relates to instalments and not excess mileage. This is because you could in theory have exceeded in the first few years but drove less in the remainder and still come under the mileage requirement.

Take a look at the link in my signature below if you have not already and that should explain everything for you. If you are still struggling or need help with your FOS complaint let me know.