VT Excess Charge

[KevWalton]

I have recently VT my PCP agreement with Ford without any issue regarding excess mileage, condition of or damage to the vehicle. I have received a letter from Ford Credit which contains the following paragraph:

"You are liable to pay for the use of the vehicle since the last monthly instalment was due to the date your letter terminating the agreement was received by us. This amount is £16.51 per day and is calculated on a pro rats proportion of your monthly instalment. This amount as of today's date is £429.18. If the vehicle is not made available within fourteen days of the receipt of your letter, the daily rate will continue to accrue until the vehicle is collected.

The vehicle was collected as arranged without any issues but I have received a further letter from the finance company saying I have until 16 June to pay this sum in full, and that failure will result in referral to a debt collection agency. Is their statement correct in Law and enforceable? I cannot afford to pay this sum being the reason I went down the VT route. Any advice greatly appreciated.

Many thanks.

[R0b]

Hello

New tactics from Ford I see.

Have you read your contract to see if it says that you are required to pay the pro-rated amount? The starting point is that your instalments are due on X date of every month, not before then.

Another point to note is that Section 100 says that you are liable to pay one half of the total price payable in respect of the sums due in respect of the total price immediately before the termination occurred.

Therefore, your liability to pay any further instalments is extinguished upon having paid 50% of the total price. If they pursue you for it, then I would make a formal complaint and take it down the Ombudsman's route as it's harassment in my eyes. Alternatively you could tell them to get lost and ignore any further letters that come through unless legal proceedings are issued (none that I know of to date from Ford).

However, the action you take is entirely up to you.

[KevWalton]

Hi

Thank you very much for your response it is very helpful. I will look again at my contract but I am going to go down the complaint route as it will give Ford something else to deal with, pointing out section 100. Again, many thanks.