BMW Financial Services - Voluntary Termination/Excess Mileage

[pt2537]

Hi David

i would recommend paying the mileage charge as it’s had such an impact on my life having been refused credit for s mortgage etc. They unfortunately have us over a barrel and I can’t see anything changing any time soon!!

Thanks

chris

The excess mileage charges may well be unenforceable, and if that is the case, then the default placed on your credit file may be open to challenge using the Grace v Blackhorse ruling, just my initial views

[Amethyst]

KurtCrisco - have you taken this any further ?

[Cmilligan]

Hi David

i would recommend paying the mileage charge as it’s had such an impact on my life having been refused credit for s mortgage etc. They unfortunately have us over a barrel and I can’t see anything changing any time soon!!

Thanks

chris

[planty123]

Just a quick update from my side, as the originator of this thread...

I decided to make BMW FS a without prejudice, "full & final settlement" offer following their offering me a 50% reduction the last time I spoke to them on the phone. I wrote them a very clear letter explaining that I would agree to pay 50%, but only if the following terms were met:

• Neither BMW Financial Services (GB) Limited nor any associate company (including Debt Collection Agencies) will take any further action to attempt to enforce or pursue the alleged balance owing in any way whatsoever and that I will no longer accused of any liability
• BMW Financial Services (GB) Limited will report to all credit reference agencies (Experian, Equifax, CallCredit etc.) to ensure that they update their records to display the account as closed via way of full and final settlement with a balance of £0.00 owing
• BMW Financial Services (GB) Limited will report to all credit reference agencies (Experian, Equifax, CallCredit etc.) to ensure that they correct their records to remove all previously reported missed/late payment entries and amend the account history to show Account Status “0” (Payment up to date) for every month since the account opening, including the months following the date of Voluntary Termination

They came back to me fairly promptly, via email, saying that they would not accept my terms. They explained that, they would accept a payment of 50% of the total alleged balance, but only as a "partial settlement". They said that upon receipt of this sum, they would update credit reference agencies to show the account as partially settled with a balance of £0.00, but they would not remove any prior negatives (missed/late payment entries). They've decided to play hard ball as well, giving me just a few days to make a decision. They had the audacity to refer to their acceptance of a 50% payment as a "goodwill gesture" on their part. Disgraceful.

The only reason I even considered paying 50% of the alleged balance was to ensure that BMW FS corrected the false information that they have submitted to credit reference agencies. If they're refusing to do that, then where's my incentive to pay? Either way, I need to take them to court to get the incorrect information removed.

If you have any advice at all R0b, it'd be much appreciated.

Hi Kurt,

I am about to end my BMW agreement via VT and I have sat tonight and read through all the posts.

I see you have not posted since July and I am curious as to whether you decided to settle the account or take ti to court? If you settled, what terms were agreed IE removing the late markers and whether it was marked as full settlement or partial.

To be honest, I'm going to have to pay £1500, I might chance my arm to get a reduction however reading these threads, I don't consider all the effort you've gone through to be worth it for me personally but I completely support your argument.

I look forward to hearing from you,

Kind Regards,

David

[Cmilligan]

Hi folks

A quick update on my situation. I paid a discounted amount in June 2018 with a view that this would be removed from my credit file and it updated accordingly. Please be very cautious if you do this as it is still showing on my credit file with a zero balance however all the missed payments remain, I have been in contact with BMWF who now tell me they can not do anything about my credit file!!!!!

[R0b]

Hi Kurt,

I have nothing further to add - last resort is to take it to court.

[stuckcluckets]

Just a quick update from my side, as the originator of this thread...

I decided to make BMW FS a without prejudice, "full & final settlement" offer following their offering me a 50% reduction the last time I spoke to them on the phone. I wrote them a very clear letter explaining that I would agree to pay 50%, but only if the following terms were met:

• Neither BMW Financial Services (GB) Limited nor any associate company (including Debt Collection Agencies) will take any further action to attempt to enforce or pursue the alleged balance owing in any way whatsoever and that I will no longer accused of any liability
• BMW Financial Services (GB) Limited will report to all credit reference agencies (Experian, Equifax, CallCredit etc.) to ensure that they update their records to display the account as closed via way of full and final settlement with a balance of £0.00 owing
• BMW Financial Services (GB) Limited will report to all credit reference agencies (Experian, Equifax, CallCredit etc.) to ensure that they correct their records to remove all previously reported missed/late payment entries and amend the account history to show Account Status “0” (Payment up to date) for every month since the account opening, including the months following the date of Voluntary Termination

They came back to me fairly promptly, via email, saying that they would not accept my terms. They explained that, they would accept a payment of 50% of the total alleged balance, but only as a "partial settlement". They said that upon receipt of this sum, they would update credit reference agencies to show the account as partially settled with a balance of £0.00, but they would not remove any prior negatives (missed/late payment entries). They've decided to play hard ball as well, giving me just a few days to make a decision. They had the audacity to refer to their acceptance of a 50% payment as a "goodwill gesture" on their part. Disgraceful.

The only reason I even considered paying 50% of the alleged balance was to ensure that BMW FS corrected the false information that they have submitted to credit reference agencies. If they're refusing to do that, then where's my incentive to pay? Either way, I need to take them to court to get the incorrect information removed.

If you have any advice at all R0b, it'd be much appreciated.

[R0b]

Hi Kirsty,

Look at posts #150 and #152 of this thread on page 4.

It is an example template but will need to be adapted to suit your husband's situation.

I will be interested to see how BMW respond - might be best to use your own thread moving forward if you intend on driving this to court.

[KirstyK]

Hi Rob are you able to provide the template that I can send to BMW for notice before action?
This relates to damages we had on a car with them from 2015 (only £245). We were not aware they were adding delinquent markers on my husbands file (only Experian,Equifax is still currently showing us paying each month!) until he got declined for car finance this year. We had disputed the original amount of £760 they then reduced to £245 went back and forth and we heard nothing since and assumed silence was acceptance.
Sent off letter to their complaints team in April this year using all the info on this thread (thank you, it has been invaluable) and they can’t even be bothered replying to it.
Our intention is to go straight to court since I know any other course of action is pointless and there is not huge sums involved in our case

I will keep you posted of any outcome

thanks
Kirsty

[R0b]

Only to the extent that case law in England and Wales is not binding but persuasive - you can still refer to it however, but if there are any authoritative cases in Scotland, they would take precedence over those in England and Wales.

But thats up to BMW to dispute, not you.

[Analoguekid]

It is a moot point but rather than re-explaining, why not take a look at post #40 on the link below and read the example letter I posted which should give you the explanation in full.


http://legalbeagles.info/forums/foru...-v-bmw-finance

fantastic thanks, I was unaware of that particular thread and had only really been following this one. Would living in Scotland affect my case? Ie in your superb response you make reference to a quote pertaining to England, should I leave that out?

[R0b]

It is a moot point but rather than re-explaining, why not take a look at post #40 on the link below and read the example letter I posted which should give you the explanation in full.


http://legalbeagles.info/forums/foru...-v-bmw-finance

[Analoguekid]

Hello

If you have read this thread then you will know the current position you are in. Unless you can agree with BMW in writing that you agree to pay the said amount on the condition that all adverse entries are removed, your only other option is legal proceedings.

sorry for not making myself clear, at the moment my credit file is just showing an amount owing, there is nothing adverse on it yet, i.e. no missed payment, and my credit score is still high.

Are they correct in stating that excess mileage is accrued before termination and is subject to far wear and tear? (this seems to be the tack they have changed to over earlier reports from this thread)

[R0b]

Hello

If you have read this thread then you will know the current position you are in. Unless you can agree with BMW in writing that you agree to pay the said amount on the condition that all adverse entries are removed, your only other option is legal proceedings.

[Analoguekid]

Hi I have been reading tis thread and am in a similar situation. I VT'd the car in May 2018. BMW FS says I owe them £1530 for excess mileage, when I used facts in this thread I got the following response.

They say that the initial contract I signed (BMW Select PCP on March 2014 4 years and 8k pa mileage, I terminated on May with 42k miles) says that the mileage will be pro-rated if the agreement ends early.

They say that Excess Milage is chargeable under the provision set out in Section 99 (2) of the CCA this section states that the right to VT does not affect any liability under the agreement which was accrued before termination. This means that we can lawfully recover any excess mileage in addition to the 50% figure allowed by section 100(1) As the mileage was accrued before termination we are able to invoice you for this.

They go on to say the wording in the act advises that no more payments will need to be made if there are no arrears and the vehicle is returned in a reasonable condition. BMW FS have no control over this wording and can only make every effort to make it clear in my agreement that the milage will be calculated on a pro rata basis as confirmed in the excess milage section on the 1st page of your agreement.

BMW FS would also view excess milage as contravening your obligation to keep the vehicle in a reasonable condition in line with your agreement and subsequently we are able to recover these costs, It would certainly not be reasonable to expect BMW FS to absorb the loss of value that the extra milage has caused as a result.

They also state that they explained as much in step 5 of their VT email sent earlier in the year, which I never signed or returned. Based on this reasoning they are confident that BMW FS have not acted incorrectly in raising this invoice.

They have added the balance to my Credit account and it now shows I owe BMW £1530 is this legal? Given they have admitted they have claimed an invoice, and this amount is not subject to a credit agreement?

Any advice please?