Voluntary Termination Ford Focus

[jcs995]

Dear All.

I am due to VT my Ford within the next few days, i will be handing them the template letter that i found on previous threads howevr i just want to clear up a few points and would be grateful if somebody could answer as i havent managed to find the answer on previous threads...

1. I have gone over my mileage by approx 11,000 miles. My annual limit for 12,000 pa and the car is now 2 years old... I have seen that I do not actually have to pay for excess mileage, is this true?! if so...can you please explain how I can serve this and get around paying for it? I would be charged at 6pm per mile.

2. I have scuffs on at least 3 of my 4 alloy wheels...(all done in the space of 2 days when getting the car...Nightmare!!!) I assume I will more than likely be charged for this....

3. Once sending the VT letter to the finance company, can I legally cancel my direct debit with them as technically the contract has now terminated?

4. My monthly payment date is 27th of each month, will I be charged possession of the vehicle up and til they received the letter on a sort of pro -rate basis for use from the 27th until now?

Hope someone can help me out..


Cheers

James

[R0b]

Re: Voluntary Termination Ford Focus

Hello James,

Your starting point is here, if you haven't read it already. It will answer most of your questions -> http://www.legalbeagles.info/forums/...ment-*UPDATED*

1. No they can't your liability is limited to 50% under section 100, if you do a search on 'excess mileage' there will be plenty of threads on this point. There also seems to be some new threads on Ford recently who threaten to sell the alleged excess mileage debt onto Link Financial. Other than this, I am not aware of Link's intention as of yet.

2. Car only need be reasonable condition not perfect. It is normal to have scuffs but thats a subjective view and what amounts to scuffs be determined by you. They will probably charge for it but I would resist it if the remainder of teh car is in decent condition.

3. Depends how you are giving notice, if by letter I would get proof of postage receipt as evidence and wait the normal delivery times before cancelling, or if by email if its before 4pm on the same day you could do it the day after as a cautionary measure. Either way if your payments are 27 each month your next one is not until September so you could even give it a few days before you cancel to be safe.

4. No refunds, no pro-rata. If you already paid it then there is no recovery.


Be sure to take plenty of photos in case of a dispute or additional claims for damage - and I would advise against signing any documentation.

[jcs995]

Re: Voluntary Termination Ford Focus

Thanks Rob very helpful.

Don't quite understand point 1 regarding Ford selling the excess mileage to Link Financial. What would that mean for me?

thank you,

James

[R0b]

Re: Voluntary Termination Ford Focus

Thanks Rob very helpful.

Don't quite understand point 1 regarding Ford selling the excess mileage to Link Financial. What would that mean for me?

thank you,

James

Hi James,

What it means is that Ford will assign their legal rights to Link Financial who are a debt purchaser, so technically Link Financial will have the legal right to claim against you if they so wish and not Ford.

The problem is that they will suggest they are entitled to the sums because the car is not in an unreasonable condition due to the excess mileage. Exceeding the required mileage under the contract is not an indicator that the car is in an unreasonable condition, it's simply a mere breach of a contract term. They would have to prove by way of an expert's report that the excess mileage has specifically put the car in a condition less than reasonable (and they won't have done that because they've not given any detail as to how or why they believe that plus it more likely that it costs more money than the sums you actually owe.). I think that would be difficult providing that the car has been maintained and serviced in accordance with the servicing guidelines.

[jcs995]

Re: Voluntary Termination Ford Focus

Perfect thanks Rob.

Will let you know how I get on, I am expecting the same process as Deakus I have been reading on another thread with Ford. It seems if you are persistent and stick to your guns and refer to them providing evidence and perhaps mentioning the old court case history, they will eventually hit at stumbling block...

[R0b]

Re: Voluntary Termination Ford Focus

They might do but I would expect them to put up some sort of fight at least. There is no grounds for excess mileage claims and I've yet to see anyone taken to court on the matter but its also new to me that Ford are assigning the contract to a third party, so if there is any court claim that will be issued its likely to come from Link Financial and not Ford.

Sit on it and wait and see what happens, by all means you can respond in a similar way to Deakus' thread but I doubt much will come of it however you can show a paper trail if it comes to it.

[jcs995]

Re: Voluntary Termination Ford Focus

Hi Rob,

[MENTION=71570]R0b[/MENTION]

Received letter today from ford. At the bottom they have said "if you have exceeded the mileage band of 26,000 miles you will be liable to pay us for the excess mileage at 6p per mile plus VAT." Well I have gone over that, I am on 35,000. Though you are saying they still cannot charge me for this amount?

" you are also liable to pay for the use of the vehicle since the last monthly instalment was due to the date of your letter, terminating the agreement, was received by us. This amount is £11.99 per day and is calculated. This amount as of today's date is £59.91"

Funny that I owe that amount as I sent the letter on the 31st August 1st class recorded with proof of postage..don't know how it's taken them 6 days to received the letter? Think they are lying to me. Is this a cost I have to pay up?? Very cheeky of them.

They also write, " once the collection date has been arranged, you must attend the appointment. If you are not available when the Gent arrives and the vehicle is not collected, you will invite the £85 agents fee (plus transporter costs)"

Thanks for your help in advance rob.

Regards, James

[R0b]

Re: Voluntary Termination Ford Focus

Do you have a copy of your agreement to hand? If so are you able to upload the agreement with your personal info removed, I am curious to see their terms and conditions.

You can do it by going to postimage.org and then pasting the forum thumbnail link here.

Ultimately they are talking nonsense, termination does not start from when they look at it but when it is received - just because they don't get round to sending you an acknowledgement until a later date does not mean they can charge you for their lack of response.

The £85 charge for not being present is ridiculous too, they can't charge for that either. No requirement for you to be physically present and if you wanted could have someone on your behalf hand over the keys.

If you have the terms that would be great but you owe nothing.

[jcs995]

Re: Voluntary Termination Ford Focus

Hi [MENTION=71570]R0b[/MENTION]

I have uploaded whole agreement...link to dropbox below.

Look forward to hearing from you.

thanks, James

https://www.dropbox.com/s/aisvirbvgg...ement.pdf?dl=0https://www.dropbox.com/s/aisvirbvgg...ement.pdf?dl=0

[R0b]

Re: Voluntary Termination Ford Focus

Under page 4, "Termination: Your Rights" conflicts with the "Excess Mileage" box underneath it. It says you need to pay excess mileage if you pay with your statutory rights under clause 8(a) however your right to terminate says if you have paid 50% and took reasonable care of the goods you do not need to pay anymore. Conflict of clauses and causing ambiguity which means the contra proferentum rule applies and the excess mileage clause is construed against Ford. Therefore it is unenforceable.

That's the easiest argument, the rest of it is set out in section 100. To understand your liability you need to read both sections 99 and 100 together. When you read it, 99(2) says liability before termination is not affected however when read alongside the liability under 100(1) it says you are only liable for the Total Amount Payable but excluding any compensation or damages for breach of contract.

This position is also verified in Schedule 1 of the Consumer Credit (Agreements) Regulations 2010 which sets out what must be included in a consumer credit agreement (paragraph 30)



As you can see it says the agreement must state the debtors maximum liability under section 100, that is to say 50% of the total amount payable, which includes the option to purchase price but does not include any breaches of the agreement.

I think the law is pretty clear on this point and this statement referred to is the statement "Termination: Your Rights" in the agreement.

Hope that makes sense

[jcs995]

Re: Voluntary Termination Ford Focus

[MENTION=71570]R0b[/MENTION]

Thank you for clarifying. I assume it'll be a few days yet before they send me out a nice letter stating what they want me to pay as they haven't yet collected the vehicle. Also attached in the letter said," as soon as we received your letter confirming your wish to voluntary terminate, a voluntary termination flag was registered on your file"

I have also attached another link to the letter I received today regarding the agent who will be collecting my vehicle and saying I MUST sign the appraisal....I have read that I do not have to sign anything in other threads. Could you clear this up?

Thank you for your help it is truly appreciated.

https://www.dropbox.com/s/3r7xars6av...%20pm.pdf?dl=0


James

[R0b]

Re: Voluntary Termination Ford Focus

The form does not need to be signed it is not a legal requirement and you shouldn't be coerced into signing something you do not agree to. IF they don't want to take the car away if you don't sign it then that's their fault you just inform the DVLA that they are the registered keeper, cancel tax and insurance then tell them that you won't be attending again unless they agree to recompense you for it.

[jcs995]

Re: Voluntary Termination Ford Focus

Hi [MENTION=71570]R0b[/MENTION]

Since my letter to Ford letting them know my decision to VT, I have onlyreceived the letter which you have seen from them…they have made no otherattempt in collecting my vehicle. It clearly states in my letter to them tocontact me within 14 days, which will be up tomorrow. It’s getting frustratingnow having the vehicle on my drive as I have a new car and it is getting in theway…they also said in the letter that I will need to re-register the vehiclewith the DVLA and have the new V5 Registration document before they can collectthe car. How can I do this when it needs to be signed by them?

A little confused on this, if you couldhelp would be great.

Many thanks

James

[R0b]

Re: Voluntary Termination Ford Focus

You can notify the DVLA of a change of registered keeper online which might be the quickest way, but it doesn't prevent them from collecting the car they are just being unreasonable and awkward. When did you give notice to terminate the agreement?

There are a couple of ways you could go about this. You can notify them that you do not give permission for the car to be on your driveway and in effect is a trespass, they should collect the car immediately or you will have it removed from the driveway onto a public road and all liability will rest with them as you will also remove tax/insurance and notify the DVLA of change of registered keeper, giving their unreasonable conduct.

The other option is that you are technically what is known as an involuntary bailee. You might wish to look at the thread below at post #35 for an explanation on it, but in your case I think it would be fair and reasonable to charge storage for the car on your driveway perhaps £10 per day and if they don't respond and you proceed to sell the car, then you can deduct your storage charges from that.

http://www.legalbeagles.info/forums/...-GAP-insurance

[jcs995]

Re: Voluntary Termination Ford Focus

I gave notice on 1st September to terminate........I have just made the changes online, thanks. I will wait till tomorrow (the 14th day) for them to contact me, if no response I will send them a letter stating the following:

Don't suppose there is a letter template floating around somewhere for this on a thread somewhere???

The letter is notice to the finance co. in accordance with section 12 of the Torts (Interference with Goods) Act 1977
- state where the goods are kept and that they are available for collection
- you will not be liable for any losses suffered by them
- give a date by which the goods need to be collected, usually a reasonable time but to be absolutely safe, I would say 1 month
- If they fail to collect the goods you will accept that the goods are abandoned and you will sell the car at auction, any costs incurred in selling the car will be deducted from the proceeds

thanks, James