VT - PSA Finance & Excess Mileage

[jburgy]

Hi, I used the template on the website to argue my excess mileage after VT (they want £1119 for me going over my mileage @ 7p per mile) and I've just had a response that reads that they basically disagree with the letter and that basically reads

"According to your agreement you are responsible not to allow the vehicles recorded mileage to exceed in any 12-month period the allowed annual mileage. If it any time the total mileage exceeds the basic mileage, you are liable for the excess mileage charge. This is basically a penalty charge for going over the mileage amount you agreed to stick to when taking the agreement out"

"In conclusion ,whilst we appreciate you are disappointed to have been charged, for the reasons explained above, we're unable to uphold your complaint."

"We are required under the FCA's complaint handling rules to advise you that this is our final decision."

Then a bunch of stuff about payment plans etc.

What can i do from here? possible to fight?

[R0b]

Those guys over at PSA don't really have a clue to be honest, and shot themselves in the foot by admitting it is a penalty charge!

Unfortunately you will be banging your head against a brick wall. The law says that you aren't liable for any breach of contract charges or compensation or penalty charges over and above the 50%.

There has been a County Court case that decided that excess mileage is not chargeable so this is probably a good time to submit a complaint to the Financial Ombudsman Service. I have a transcript of that judgment and can pass it on to you to submit as evidence as well as the that email confirming it is a penalty charge. I'd be surprised if they could get out of that one but you never know.

If you want to make a complaint to the FOS, it's free of charge and you can download their complaint form if you click here.

Happy to assist in the wording of your complaint if you post up your draft first and then we can provide feedback.

[jburgy]

R0b Thank you so much! This is reassuring

attached complaint letter I will also send a copy of their letter and if I could get that transcript too that’d be amazing

if my writing is too messy I’ll type it up as I’d appreciate some advice

[R0b]

Writing looks fine to me. You might want to add something like the following:

I disputed the excess mileage charges because it is a contractual term and under Section 100(1) of the Consumer Credit Act 1974, my liability is limited to 50% of the total price payable. The definition of "total price" under Section 189 of the CCA 1974 excludes any sums in relation to breach of contract, compensation or penalty. I attach a transcript of a recent County Court case where the judge confirmed at paragraphs 15 and 16 of her judgment that, amongst other things, excess mileage is not recoverable by virtue of Section 100(1) and the definition of "total price".

If you can't fit all of that in by handwriting, the FOS do offer a word version of their complaint form. I've attached it to this post if you prefer to type than handwrite. I will also send you a PM of the transcript in the next 5 or 10 minutes.