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Mercedes PCP help

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  • Mercedes PCP help

    Had this response, currently fighting excess mileage claim:

    Dear Mr Shum,



    Thank you for your patience while I have investigated your concerns. I am writing to let you know that I will not be upholding your complaint for reasons I will now explain.



    Background



    My understanding of your complaint is that you have voluntarily terminated your vehicle, and have sent a letter stating you believe you have met the relevant criteria and limit your liability to half of the total price payable. Any additional costs, expenses, compensation or otherwise relating to a breach of the agreement are not recoverable. You have inspected the vehicle and believe it to be in a more than reasonable condition. You have photographic evidence of this.



    Investigation



    As part of my review, I have analysed your letter dated 12th February 2020, where you have stated that as you have paid over 50% of the total value of the agreement and so have met the relevant criteria and limit your liability to half of the total price payable. Any additional costs, expenses, compensation or otherwise relating to a breach of the agreement are not recoverable. I have attached a copy of this letter to this report.




    Whether you are returning your vehicle at the end of your agreement or upon use of the voluntary termination (VT) clause, as you have not exercised your right to purchase the vehicle, an excess mileage charge will be raised should your return mileage exceed your total mileage allowance. This obligation is set out within the first page of your agreement, under key information. I have attached your agreement to this report.




    The provisions of the consumer credit act that covers a customers right to VT their agreement do permit us to include any over mileage when determining 'not reasonable' upon the vehicles return. It is stated in your agreement under Excess Distance "If the vehicle is returned to us (whether at the end of the period of hire or an earlier termination), we will calculate the total distance travelled by the vehicle whilst in your possession ( the " Total Distance")". Your mileage has therefore been re-calculated on a pro-rata basis in line with the length of time you have had the vehicle in your possession.

    I would also kindly refer you to S99(2) Consumer Credit Act 1974 where it states "Termination of an agreement under S (1) does not affect any liability under the agreemnt which has accrued before the termination".




    As your agreement was subject to a mileage allowance prior to termination and you have exceeded the allowance of miles, the charge has been raised correctly and remains payable. The excess mileage charge is £1,532.58.




    The conditions of the Consumer Credit Act do permit us to determine what is considered reasonable condition. As excess mileage has a negative affect on the value of the vehicle, this is not considered reasonable and Mercedes-Benz therefore retains the right to charge for this following the voluntary termination of an agreement. Having paid 50% of the agreement qualified you for the right to voluntary terminate, it did not limit your liability to the charges raised. Your letter sent has not been accepted by Mercedes-Benz accepting your terms.




    I have attached a copy of your invoice to this report together with your vehicle appraisal that you signed on the 17th March 2020 at Mercedes-Benz of Wolverhampton. From this appraisal you have been charged for three alloy wheels at £85.00 each totalling £255.00.




    You have advised that you had photographic evidence of the condition of your vehicle, which you believe was more than reasonable. You have signed your appraisal and therefore agreed to the condition of your vehicle.
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