BMW Financial Services - Voluntary Termination/Excess Mileage

[Grahammcm1888]

Hi All

i just recieved this letter today. Presumably this is coming from BMW Finance as I have never had a problem with my credit before. My credit rating has started to deteriorate from last Month also. I assume the letter received is standard tactics from BMWFS?

[stuckcluckets]

From looking at that history on your account, I would definitely say that in my view it is inaccurate and misleading. A "delinquent" account is where you have missed so many monthly repayments. In your case, you have zero missed monthly repayments as can be seen from the green ticks, presumably that was the time you gave your notice of termination.

I can see that they have reported the account as VT, do you know when they reported to the credit agency (Experian I presume?) that you VT'd the agreement - is it that date as stated 01/7/2017, and is that correct?

I fail to see how an agreement can be terminated and yet BMW are entitled to continue to keep the account as 'open' or 'delinquent' reporting fees or charges as missed payments as if they were credit repayments. Let's not forget that the whole purpose of a credit reference agency is to assist other creditors in making an assessment as to whether or not you would be able to keep up with your credit repayments. Reporting fees or charges (which is a genuine unresolved dispute) in this way is, in my view, misleading because it does not provide any meaningful information about your creditworthiness. On the contrary, it gives off the impression that you are behind for over 6 months of your monthly instalments when in fact you made all repayments up to the point of termination. The correct route for BMW is for it to bring a claim to court for breach of contract but for obvious reasons is it is abusing its position to coerce you into paying up.

As for any claim, it would be a breach of data protection and/or negligence. There's no hard and fast rule about damages under breaches for data protection especially when it comes to inaccuracies of information as there is little case law to go off. My view is that the more aggravated the matter, the higher compensation you can demand. I think I already mentioned this but I would expect BMW to challenge it, and perhaps counterclaim for the outstanding balance. So there is a risk in doing this because there is no case law to base your claim around and it would come down to the arguments on the day and where a judge would see it justified to allow BMW to report your account as delinquent despite the fact that the agreement was terminated some time ago and your liabilities for credit repayments were extinguished.

Here's an extract from Experian's own guide on understanding your credit report (Link here):



You will see that it refers to status codes as showing "whether you have made your credit repayments over the past six years ..." I think it is quite clear that the excess mileage charges do not form any part of the credit offered and are incidental to it yet BMW are reporting those charges as if you have missed your credit repayments - key word in that description is credit. Add to the fact that the account is being shown as delinquent rather than closed in accordance with the date when you terminated the agreement is a further breach.

Ultimately it is your decision and I don't think any differently of you if you wished to make an offer to settle on the basis they will remove the markers. It's certainly a big decision for you to make so not one to take lightly. If you do choose to make an offer then I would suggest you get it in writing that they will remove all adverse entries and mark the account as closed (and that the settlement is in no way to be construed as an admission of your liability).

Of course BMW will take a different view to all of this, but it is also a risk to them in that if they did lose at court, it might not set a precedent but one can certainly refer to it as evidence for persuasiveness.

I have also requested a copy of the court case relating to RachRad who won her case on excess mileage, sadly the courts are taking so bloody long its been over a month and they still haven't located the transcript..

Thanks for the reply R0b.

I totally agree, it's extremely misleading! The car was VT'd slightly before that date shown, but that appears to be the date they actually reported it to credit reference agencies.

I wrote to BMW Financial Services several times about the way in which they were reporting things, highlighting how inaccurate and unreasonable it was. On one occasion I attacked it from the "refusal to issue a default" standpoint, and I received a hilarious email response:

Thank you for your email dated [REDACTED] of which your comments have been duly noted.

A Default Notice is required in the event of any breach under the terms and conditions whilst the agreement remains active. The Default Notice offers the customer an opportunity to remedy the breaches in order for the agreement to continue as normal. You exercised your right to Voluntary Terminate the agreement in June 2017. This means that you terminated the agreement with BMW Financial Services and returned the vehicle. As such, the agreement is no longer active and does not require a further Default Notice for Excess Mileage.

I can see from our records that you had raised a complaint regarding the Excess Mileage Charge which has been addressed by our Vehicle Logistics department and the Financial Ombudsman Service. As per their investigations, the charge remains due. It is not necessary for BMW Financial Services to impact your credit file further by applying a Default as it is not an accurate reflection of how your agreement ended. The charge became due on [REDACTED] and will incur late payment markers every 28 days of non-payment and until the full amount has been paid.

I honestly had no idea where to start in responding to that one. It's so ridiculous and incorrect it's genuinely laughable. It implies that a "default notice cannot/should not be reported" since the agreement is no longer "active". That would make sense, but, they have left the agreement active?

Plus, their understanding/definition of a default notice is incorrect. Default notices are issued to prevent the continual addition of missed/late payment entries until the end of time. They drop from an individuals credit file after 6 years (I believe), thus allowing the individual to at least have a chance of rebuilding their credit rating despite their earlier issues.

I've written to BMW UK, notifying them that I intend to take legal action if they do not work with BMW Financial Services to cease their illegal/illicit behaviours and repair the damage that has been done to my perceived credit worthiness. We'll see what their response is!

Either way, I need a resolution soon. Their continual inaccurate reporting to CRAs is becoming really quite damaging for me. I've just had enough of it frankly.

[Dehaw]

Thanks for the reply R0b.

I totally agree it's extremely misleading! The car was VT'd slightly before that date shown, but that appears to be the date they actually reported it to credit reference agencies.

I wrote to BMW Financial Services several times about the way in which they were reporting things, highlighting how inaccurate and unreasonable it was. On one occasion I attacked it from the "refusal to issue a default" standpoint, and I received a hilarious email response:

Thank you for your email dated [REDACTED] of which your comments have been duly noted.

A Default Notice is required in the event of any breach under the terms and conditions whilst the agreement remains active. The Default Notice offers the customer an opportunity to remedy the breaches in order for the agreement to continue as normal. You exercised your right to Voluntary Terminate the agreement in June 2017. This means that you terminated the agreement with BMW Financial Services and returned the vehicle. As such, the agreement is no longer active and does not require a further Default Notice for Excess Mileage.

I can see from our records that you had raised a complaint regarding the Excess Mileage Charge which has been addressed by our Vehicle Logistics department and the Financial Ombudsman Service. As per their investigations, the charge remains due. It is not necessary for BMW Financial Services to impact your credit file further by applying a Default as it is not an accurate reflection of how your agreement ended. The charge became due on [REDACTED] and will incur late payment markers every 28 days of non-payment and until the full amount has been paid.

I honestly had no idea where to start in responding to that one. It's so ridiculous and incorrect it's genuinely laughable. It implies that a "default notice cannot/should not be reported" since the agreement is no longer "active". That would make sense, but, they have left the agreement active?

Plus, their understanding/definition of a default notice is incorrect. Default notices are issued to prevent the continual addition of missed/late payment entries until the end of time. They drop from an individuals credit file after 6 years (I believe), thus allowing the individual to at least have a chance of rebuilding their credit rating despite their earlier issues.

I've written to BMW UK, notifying them that I intend to take legal action if they do not work with BMW Financial Services to cease their illegal/illicit behaviours and repair the damage that has been done to my perceived credit worthiness. We'll see what their response is!

Either way, I need a resolution soon. Their continual inaccurate reporting to CRAs is becoming really quite damaging for me. I've just had enough of it frankly.

I'm still in the same boat KurtCrisco.

I've been living in Australia now since last September when this saga started and followed your journey, which isn't too different from my own and I agree with both yourself and R0b.

I only managed to check noddle (Call Credit) today via a VPN as that seems to be the only one they are updating, the one on Equifax or Clear Score shows no missed payments and my credit file there is unaffected so I can only assume that its the Call Credit system that's allowing them to get away with this, maybe worth reaching out to them?

I'll be in the UK in August, do you think it might be best if we brought our case together as one to take it to court or would it need to be done individually? Maybe if there is a group of people in the same position BMW might think twice?

[Cmilligan]

Hi all

I’m late to this party as I only found/ read it yesterday, unfortunately I’m in a similar position to you all. I VT my car last year and received a ‘invoice’ for excess mileage, the process then began of disputing etc thereafter my credit file being targeted. As a result I’ve tecently been refused a mortgage and my credit card limit reduced. My score is currently very poor on Experian. I’ve now paid the charge at a 40% reduction. They basically had me over a barrel and I gave into pressure from my wife to pay it!!

[vipvipvip]

Hi CMililligan, sorry to hear that. Did they clear your markers on payment?

[Dehaw]

Hi all

I’m late to this party as I only found/ read it yesterday, unfortunately I’m in a similar position to you all. I VT my car last year and received a ‘invoice’ for excess mileage, the process then began of disputing etc thereafter my credit file being targeted. As a result I’ve tecently been refused a mortgage and my credit card limit reduced. My score is currently very poor on Experian. I’ve now paid the charge at a 40% reduction. They basically had me over a barrel and I gave into pressure from my wife to pay it!!

Hi Cmilligan,

How did you come to the agreement of the 40% reduction? To me, that proves that they know this is unenforceable and will accept whatever offer if provided.

Did they also agree to remove all monthly marks from your credit file?

I contacted Callcredit to ask why BMW is allowed to go over the 6 month marking system that they provide where they should be taking me to court but yet to receive an answer.

[Cmilligan]

Hi

thanks for the replies, I have a update as of this morning. I received a letter from BMWF saying I have a outstanding balance (less the 40% I had already paid) after numerous phone calls they conceded this is a mistake and the account is now settled. The reason i was given a 40% discount was that it was offered to me if I settled their and then over the phone, which I did. My credit file is still showing defaults etc however they assured me this would be rectified and I would be informed when it has been done. I will wait and see!!!

[Dehaw]

Hi

thanks for the replies, I have a update as of this morning. I received a letter from BMWF saying I have a outstanding balance (less the 40% I had already paid) after numerous phone calls they conceded this is a mistake and the account is now settled. The reason ,

was given a 40% discount was that it was offered to me if I settled their and then over the phone, which I did. My credit file is still showing defaults etc however they assured me this would be rectified and I would be informed when it has been done. I will wait and see!!!

Hi Cmilligan,

So this 40% discount was offered over the phone and I can only assume you were questioning it at the time of calling? Can I ask what the value was that they claimed you were due?

Glad you're on the road to recovery, your credit file is normally updated monthly so keep an eye on it.

Thanks

[Cmilligan]

Hi

they claimed I owed £821, I argued on the phone with various people one of whom offered 30% reduction then passed to a supervisor who offered the 40%. Interestingly one of the call takers made mention of me signing forms acknowledging the excess mileage charge, however I explained I signed no forms and done everything via email, he then told me I didn’t matter if I signed the forms or not!! It was my intention to fight this all the way but the credit file has taken its toll.

[stuckcluckets]

Hi

they claimed I owed £821, I argued on the phone with various people one of whom offered 30% reduction then passed to a supervisor who offered the 40%. Interestingly one of the call takers made mention of me signing forms acknowledging the excess mileage charge, however I explained I signed no forms and done everything via email, he then told me I didn’t matter if I signed the forms or not!! It was my intention to fight this all the way but the credit file has taken its toll.

This is VERY interesting. Do you have anything whatsoever in writing from BMW FS? They're behaviour here is an admission of liability, and as such, we can all use this as ammunition in our fights.

[Cmilligan]

Hi

Yes I did receive paperwork at the time however I was guided by other forums not to sign anything and do it all via email.

[MIKE770]

E-Mail ? Oh! dear any receipts?

[Dehaw]

KurtCrisco are you any further forward?

It seems we are both pretty much in the same boat and although I now live in Australia I do have properties in the UK so makes sense to try and resolve this.

Have you spoken with any solicitors about the best way forward?

Can we challenge the credit agencies for allowing BMW to do what they are doing without taking this to court?

Would it be easier to take BMW to court and call their bluff?

R0b what are your thoughts based on where we are at?

Thanks, I truly appreciate any help.

[Cmilligan]

Receipts!!!! I’m not sure I follow, I have email conversations , sent and received with BMWFS.

[stuckcluckets]

Receipts!!!! I’m not sure I follow, I have email conversations , sent and received with BMWFS.

Email conversations should be sufficient. Would you be happy to potentially share these? Redacting your personal information before doing so of course?

I'm happy to guide you through the process of converting these to .PDFs etc. - this is absolutely vital evidence in our fights as it is evidence of BMW FS admitting liability!