Originally posted by R0b
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With regard to Santander trying to record a Default on your credit record for not paying collection charges, the simple answer is that a 'collection charge' in itself is not integral to the item being purchased whereas excess mileage is. Using your reasoning, the BMW my wife currently has on a 4 yr PCP with a 44,000 mileage allowance, could be VT'd after 3 yrs and 9 months (50%) and 64,000 miles with no penalty. Yes the car can be VT'd under the statutory terms of the CCA with no penalty, but the excess mileage component is separate to this (although rolled-up into the one agreement). This is allowed and the excess mileage is not technically a 'charge' in the sense that you and Stuckcluckets seem to think.
In the case of my wife's car, when it reaches 4 yrs old, CAP notes a £110 difference in value for every 1k miles. If you were correct, anyone taking out a PCP would opt for the lowest mileage allowance possible in order to reduce their monthly rentals, safe in the knowledge that the finance companies couldn't claim for excess mileage if VT'd. (Doesn't really matter if you intend to pay the balloon or trade in back to the dealer for a new agreement)
FWIW, the finance companies raise a number of Simple Procedure Actions (in Scotland) every year for exactly this, and I would assume do similar in England & Wales also. The numbers are relatively small as most people recognise their legal obligation to pay for the excess mileage, and where they're daft enough to believe what they read on forums such as this, the defendant response form dropping through their letterbox from the Sheriff Court (in Scotland) soon focuses their mind. If they're still too arrogant to believe that they have to pay it, and wish to consult their solicitor, a bit of professional legal advice soon ensures that they pay up tout-suite (Stuckcluckets' home insurer recognised his case was going nowhere, but palmed him off with a polite excuse about his policy not covering the relevant periods of his PCP agreement). From the finance company's perspective, the £19/102 cost of raising a Simple Procedure action is just an administrative cost of pursuing the debt. In summary, the claims are being issued, but never reach court because the defendant settles.
With 5,678 posts on this site you clearly fancy yourself as a consumer lawyer... a bit like those people who buy second-hand ambulance service clothing on the 'bay and a scanner, and pretend to be paramedics.
My solicitor charges a flat fee of £185 per hour. Real solicitors, lawyers, and even para-legals don't spend their evenings giving out 'freebies' to randoms on the internet. If readers want to risk their financial and personal reputation off the back of some free 'advice' given by people on this site then they're definitely getting what they pay for. Good luck!
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