Vwfs excess millage charge court

[BIGST]

Good evening all


Brand new here...well over the past few months I have been reading through lots of threads about excess millage etc etc.


Having recently VTed my Audi back in May knowing I was in excess for millage I expected what was to come...

letters from Audi

letters from themis recoveries (debt colectors)

and now a letter from blake Morgan LLP (vwfs solicitor)


I VTed my car for a genuine reason not just a get of jail card...having recently changed jobs which ment a 5 minute drive on a Monday morning and the same on a Friday night and then the car to sit on the road all weekend till monday morning again the £400 per month price tag was not justifiable and also recently having a baby a 3dr hatch back was not practical either.


no negative impacts on my credit file and vwfs account has been closed since June report with a status of settled


They are using section 99(2) as there reason for there claim and obviously also the contract I signed!!

Right to terminate hire-purchase etc. agreements.
(1)At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

(2)Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.


So my question today having only ever found 1 thread relating to excess millage with VWFS and that thread ended where the customer won the case...has anyone else gone to the end with VWFS and not gave in to the letters?


My charge is just shy of £950 and was wondering if they would bother with a charge like this as iv seen on here charges north of £2-3k.


I have read pages on the internet namely...

this one (R O B guide to pcp/excess millage)

The Car expert (seems a knowledge and good site for info)

The money advice service (I believe this website is government run and it also states the information is taking from the car expert website)



Thank you very much for any more information

[R0b]

When you terminated, did the number of payments exceed 50% and if so, how much?

[BIGST]

I made a payment of £34 outside the £400/month direct debit to make it up to the 50% mark and then VTed it via the template letters on this site adjusted to my case.

[R0b]

I see, well you can either pay up or send their solicitors a response telling them where to go and if they fancy their chances, issue a claim.

Thing is, all finance companies latch on to s.99(2) and argue that it is in addition to section 100(1) but you have to read them together to understand the complete picture.

The beginning of section 100(1) starts with saying Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99... meaning that if you've terminated under that provision then you are liable to pay one half of the total price, including the sums due in respect of the total price immediately before termination.

Excess mileage charges are compensatory in nature, because this is what finance companies consider their loss to be due to the excess mileage or, at the very least, they are damages for breach of the agreement. Because "total price" has a definition excluding damages for breach or compensation, those charges are not recoverable however much the finance co. tries to argue they are.

In simple terms, Section 100(1) effectively acts as a statutory limitation of liability - the 50% is the maximum amount recoverable by the finance company when you exercise your VT right. If you read consumer contracts, you will see companies limiting their liability (probably one in your HP agreement) and this is no different.

Court claims currently take on average 6-8 months so you could put away an amount every month, have your day in court and if you somehow lost, you'd have the means to pay the amount.

[BIGST]

Thank you

I think I will send there solicitor a reply just reiterating what I told vwfs and see what happens from there...will keep you updated