Bmw finance voluntary termination

[Graemex54]

Hi there

I wrote to BMW financial services using your template for VT of my pcp agreement. I've had confirmation that I owe nothing (subject to fair wear and tear and excess mileage) and theyve asked me to sign their VT form and send the V5 back with it.

two questions:

1. Having done approx 4500 pro rata miles over my agreement, will signing their document legally bind me to pay the excess mileage charge?

2. I cancelled my DD on the 28th August which was the day I sent the VT email. They didn't respond until I made a phone call this morning (3rd September). The payment is due to come out on the 6th, will they have a right to charge me another months rental? I've seen some horror stories of credit ratings being affected by bmw putting default notes onto credit scores in these cases.

any advice would be appreciated.

Graeme

[R0b]

Hello

1. Short answer is (in my opinion) no. The wording of the letter is an attempt to contract out of your rights and liabilities under the Consumer Credit Act 1973, particularly the point about limiting your liability to 50% of the total price payable (Section 172 of the CCA says that any written terms or agreement that contradicts the rights or liabilities under the CCA is void and unenforceable). In theory, you could sign and return it but they will then try to hold you to that signature and your life becomes more or less and uphill struggle and if they took you to court over it, you better be up to speed on the legislation because if you aren't a judge will probably find that you owe the money.

Put simply, there's no legal obligation to sign and there's no need to put yourself in a position that creates more hassle than its worth.

2. Assuming you can prove it was sent to a valid BMW email then you should be fine but do anticipate them trying to charge you for it.

You should also be weary that if you refuse to pay the excess mileage, BMW have been putting late payment markers on people's credit file and unless you are willing to take them to court for breach of data protection, you should consider paying up.

[Graemex54]

Thanks Rob.

For the sake of £400 I may just pay the Excess mileage. I plan to sign the VT form and enclose a copy of the email I sent to them along with a covering letter explaining that the contract was deemed terminated upon acknowledgement from them.

Cheers