Excess mileage charge

[R0b]

Re: Excess mileage charge

So so do you not think it's worth using a template letter to reply as they have said they expect payment within 7days

It's up to you how you wish to reply but as long as you make clear that you've covered the following points:
1. You VT'd in accordance with s.99
2. The car was handed over in a reasonable condition
3. They are prevented from charging you excess mileage by virtue of s.99 & s.173. If they wish to rely upon the car being in unreasonable condition, prove it with evidence.

There is a few suggested letters in the thread I posted before, you could start with that and tweak as you wish or if you want to draft something yourself I am happy to look over it before you send it off.

[taraoscar08]

Re: Excess mileage charge

Ok this is what I have drafted so far


Dear xxx



Re: Reference xxx
Vehicle Registration: Xxx

I am writing to you with reference to the above matter and your letter dated 21 December 2015

Please note that liability in relation to any excess mileage on the vehicle is denied.

It is noted that in the letter you appear to purport that I am in default of sums owed under the agreement to the total of £874.78 As you will be aware, I invoked my statutory right under section 99 of the Consumer Credit Act 1974 which states that a debtor has the right to voluntarily terminate the agreement prior to the end of the agreement provided that he has paid one half of the total amount payable. Further to this, as long as the goods are deemed to have been taken reasonable care of, the debtor will not need to pay anymore.

As the agreement was voluntarily terminated which was accepted by BMW financial services, you cannot supply me with a notice of default under the agreement. Any attempt to apply a default notice in respect of my credit report to any of the credit reference agencies will be deemed factually incorrect and will have an impact on any future credit I may request. I therefore reserve the right to take further action including, but not limited to, commencing legal proceedings for defamation, breach of contract, negligence and malicious falsehood.

Regardless of this, a contractual term cannot compel me to pay in excess of that set out under s.173 of the Act. The only requirement under statute law is that the goods are in reasonable condition (evidenced by the condition report of the vehicle you attached to your letter) and that in excess of 50% of the total amount due under the agreement is paid (which has also been confirmed by Bmw financial services).


Please confirm by return that this matter is now closed.

Kind Regards,
Sent from my iPad

[R0b]

Re: Excess mileage charge

Ok this is what I have drafted so far


Dear xxx



Re: Reference xxx
Vehicle Registration: Xxx

I am writing to you with reference to the above matter and your letter dated 21 December 2015

Please note that liability in relation to any excess mileage on the vehicle is denied.

It is noted that in the letter you appear to purport that I am in default of sums owed under the agreement to the total of £874.78 As you will be aware, I invoked my statutory right under section 99 of the Consumer Credit Act 1974 which states that a debtor has the right to voluntarily terminate the agreement prior to the end of the agreement provided that he has paid one half of the total amount payable. Further to this, as long as the goods are deemed to have been taken reasonable care of, the debtor will not need to pay anymore.

As the agreement was voluntarily terminated which was accepted by BMW financial services, you cannot supply me with a notice of default under the agreement. Any attempt to apply a default notice in respect of my credit report to any of the credit reference agencies will be deemed factually incorrect and will have an impact on any future credit I may request. I therefore reserve the right to take further action including, but not limited to, commencing legal proceedings for defamation, breach of contract, negligence and malicious falsehood.

Regardless of this, a contractual term cannot compel me to pay in excess of that set out under s.173 of the Act. The only requirement under statute law is that the goods are in reasonable condition (evidenced by the condition report of the vehicle you attached to your letter) and that in excess of 50% of the total amount due under the agreement is paid (which has also been confirmed by Bmw financial services).


Please confirm by return that this matter is now closed.

Kind Regards,
Sent from my iPad

All fine except I'd replace the excess of 50% part with something like ... my liability is restricted to 50% of the total amount payable under the agreement.

[taraoscar08]

Re: Excess mileage charge

Yep, it's not worth pinging letters back and forth, if they wish to make the claim then they shall have to go to court over it (which they won't). The lenders are likely to have suffered a loss of some sort as a result of people VT'ing and this is one way of recouping some of those losses as not many people will be aware, even small charges for collection of the vehicle will amount up over time.

Let us know what they say but i suspect they might come back to you and say the car is not in reasonable condition due to excess mileage and my response would be prove it.

All sent, will update you once I've received s reply 👍 thanks again fo all your help I really appreciate it.

[FredW]

Re: Excess mileage charge

I had a lease car, boy do they exaggerate damage! A small, repeat SMALL mark and they tried to claim £200!! Finally agreed on £50 just to be rid.

[taraoscar08]

Re: Excess mileage charge

I sent the email and I've had a response.

The letter says

You have advised us that as you have voluntary terminated the agreement under statutory rights, you are not in breach of the agreement and that you feel nothing further needs to be paid in relation to any excess mileage.

Section 99 (2) of the consumer credit act allows us the provision to invoice you for anything accrued prior to the termination of the agreement. Therefore, as your mileage was accrued before you ended this agreement, we have invoiced you for the excess under the provision. The charge for excess mileage is correctly pro-rated for the number of monthly payments made;the agreement specifically states "maximum total mileage of 32,000" "if you end this agreement early (see termination):the maximum total mileage will apply pro-rota to the reduced period of the hire and your obligation to pay excess mileage charge will accrue accordingly immediately prior to termination".

Excess mileage is a contractual element to your agreement and you have been invoiced for mileage noted prior to the contracts termination. We do not absorb the additional losses caused. By the excess mileage and are therefore within our rights under the consumer credit act to send you this invoice.

I understand that this may not have been the outcome that you were hoping for however, I hope you can understand our position. Should you wish to discuss a payment plan or make a payment contact our accounts team..

Then on the back advises us we can refer it to the financial ombudsman bla bla

What do you think??

[R0b]

Re: Excess mileage charge

I sent the email and I've had a response.

The letter says

You have advised us that as you have voluntary terminated the agreement under statutory rights, you are not in breach of the agreement and that you feel nothing further needs to be paid in relation to any excess mileage.

Section 99 (2) of the consumer credit act allows us the provision to invoice you for anything accrued prior to the termination of the agreement. Therefore, as your mileage was accrued before you ended this agreement, we have invoiced you for the excess under the provision. The charge for excess mileage is correctly pro-rated for the number of monthly payments made;the agreement specifically states "maximum total mileage of 32,000" "if you end this agreement early (see termination):the maximum total mileage will apply pro-rota to the reduced period of the hire and your obligation to pay excess mileage charge will accrue accordingly immediately prior to termination".

Excess mileage is a contractual element to your agreement and you have been invoiced for mileage noted prior to the contracts termination. We do not absorb the additional losses caused. By the excess mileage and are therefore within our rights under the consumer credit act to send you this invoice.

I understand that this may not have been the outcome that you were hoping for however, I hope you can understand our position. Should you wish to discuss a payment plan or make a payment contact our accounts team..

Then on the back advises us we can refer it to the financial ombudsman bla bla

What do you think??

Did they invoice you for the excess mileage before or after you wrote to them to VT your agreement? If it was after then the excess was not accrued until after termination. Regardless, I think the meaning of accrual is something that accumulates over time e.g. your monthly payments not excess mileage. It is a contractual term which they have referred to and the definition under the CCA 1974 states that "total amount" means the total amount stated on your agreement and does not include any other charges where you have breached the terms of your agreement which is recoverable as damages.

You can go to the ombudman, based on previous rulings I have heard they tend to rule in favour of the lender maybe because they cannot understand how the sections work. If it was me, if they want the money then they will have to go to court, I doubt they will do that as they're likely to lose I reckon based on previous cases that have gone to court.

[taraoscar08]

Re: Excess mileage charge

They sent me the invoice after I voluntary terminated. I've not replied to them yet due to the holidays. So how do you think I should reply to them?

[Openlaw15]

Re: Excess mileage charge

s.99 is not a defence if the mileage was done prior to terminating hire purchase. If the excess mileage charge was a term of the contract and the person agree to that, by signature, given that such a term appears standard practice for the industry the person has to pay that amount. It is the BMW protecting its cars by saying, you can use it but don't take the Michael by using excessive mileage which will affect the resale or current value of the car.

[taraoscar08]

Re: Excess mileage charge

Ok thanks for your help. We are going to call them to see if they would take a reduced payment

[Openlaw15]

Re: Excess mileage charge

Were you aware of any such clause prior to signing the contract, did they attempt to alert you to said clause, or alternatively would it have been obvious to someone else in your shoes but were not you (hypothetical person standard)?

[taraoscar08]

Re: Excess mileage charge

The sales man said to us don't worry about the excess mileage charge that's only if you get to old and hand back your license...

[Openlaw15]

Re: Excess mileage charge

Now this sounds like misrepresentation that is it say an inducement to contract, which term is different to BMW's excessive mileage clause. So this is a very different issue. Say to BMW I contracted based on the verbal term of the salesman and it is my view that this term was part of the contract. It is also my view that whilst I contracted to be legally bound by the main contract provisions, I simply would not have signed the contract or would be bound by it where the excessive mileage clause was a term of that contract except through said inducement.

[ostell]

Re: Excess mileage charge

Wait for others with a greater number of posts to respond before you contact them, and not by phone.

Edit: The reason I added this is that many people, in this forum, have had this same problem and eventually nothing has had to be paid. Indeed one contributor had a message back from the creditor stating that the creditor agreed that they could not charge as it it would be against the regulations.

Would they take it to court? Probably not as to fail to get the payment would set a precedent that would stop the income from others doing VT

[Kati]

Re: Excess mileage charge

[MENTION=7]Tools[/MENTION]??