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Re: PSA Finance Voluntary termination
Hi Rob
Thanks for replying - I appreciate weekends are busy so thats no problems at all.
As per the CAP guidelines, my car is in a clean condition.
Shall I send my reply to PSA finance or to RMS?
In your opinion, would it be easier for me to agree to repair costs of £104 and defend the extra mileage charges? Or shall I attempt to defend both initially? Please have a look at my arguments in the letter below relating to the extra damage charges to see what you think.
I am writing further to your letter dated 01/09/2017.
Excess mileage charges
Please note that liability in relation to the alleged outstanding balance for excess mileage is denied.
You have suggested in your letter that I am liable to pay excess mileage under the terms of the agreement, however this is not correct. Section 100(1) of the Consumer Credit Act 1974 confirms that liability is restricted to one half of the total price payable. The CCA defines ‘total price’ as “total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement”.
As you have already alluded to, the excess mileage is a contractual term of the agreement and therefore cannot be included as an amount which is owed. This position is further clarified under section 173 of the Act in that any contractual term which is inconsistent with any rights under the CCA and imposes additional liability, whether direct or indirect, shall be void and unenforceable.
Nonetheless, the excess mileage clause is based on the principle of ascertaining an estimated value of the car, taking into account its age and anticipated mileage at the end of the hire period. The hirer is then offered the option to purchase the vehicle at the suggested price. Mileage which exceeds the stipulated amount under the terms does not however, mean that the vehicle is not in a reasonable condition.
Damage charges
The vehicle was maintained in a reasonable condition throughout the period of the agreement and therefore such damage charges you are claiming would amount to fair wear and tear; the vehicle does not need to be returned to you in any better condition other than a reasonable one. The vehicle assessment report attached with your letter from City Auction Group (CAG), dated 30/08/2017, clearly gives the vehicle a NAMA (National Association of Motor Auctions) grading of 1. This is evidence to the fact that the car was provided to you in a reasonable condition.
Additionally, I have attached with this letter a report from DMN Logistics dated 30.08.2017 which clearly shows that the only damage noted on the vehicle is a chip / dent less than 10mm on the rear door. This is inconsistent with the report by CAG which classes the extent of the damage as more than 10mm. Section 18.8 of my Hire Purchase Contract defines dents less than 10mm as normal "Multiple dents in any one panel and any dent greater than 10mm in diameter on teh bonnet, boot, roof or above the body moulding lines on the sides of the vehicle is considered abnormal". The report from CAG also notes that there was damage to the OSF wheel. This was not present at the time of collection of the vehicle from me and I am not liable for any damages which occur once the vehicle has left my possession. This applies to the door mirror (NSF) damage as well which was also not present at the time when the vehicle was collected from me.
Photographic evidence was taken prior to the vehicle being transferred to you which clearly shows that the vehicle was in a reasonable condition. The onus is on you to prove that the alleged damage caused was more than reasonable fair wear and tear.
Notwithstanding the above, I have paid circa 54% of the total amount payable and any alleged damage to the vehicle would be covered by these additional payments.
In any event, such sums you are alleging to be owed may only be recovered by a court order only and should you wish to pursue this matter in court, your application will be strongly defended.
Please confirm by return that this matter is now closed.
Hi Rob
Thanks for replying - I appreciate weekends are busy so thats no problems at all.
As per the CAP guidelines, my car is in a clean condition.
Shall I send my reply to PSA finance or to RMS?
In your opinion, would it be easier for me to agree to repair costs of £104 and defend the extra mileage charges? Or shall I attempt to defend both initially? Please have a look at my arguments in the letter below relating to the extra damage charges to see what you think.
I am writing further to your letter dated 01/09/2017.
Excess mileage charges
Please note that liability in relation to the alleged outstanding balance for excess mileage is denied.
You have suggested in your letter that I am liable to pay excess mileage under the terms of the agreement, however this is not correct. Section 100(1) of the Consumer Credit Act 1974 confirms that liability is restricted to one half of the total price payable. The CCA defines ‘total price’ as “total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement”.
As you have already alluded to, the excess mileage is a contractual term of the agreement and therefore cannot be included as an amount which is owed. This position is further clarified under section 173 of the Act in that any contractual term which is inconsistent with any rights under the CCA and imposes additional liability, whether direct or indirect, shall be void and unenforceable.
Nonetheless, the excess mileage clause is based on the principle of ascertaining an estimated value of the car, taking into account its age and anticipated mileage at the end of the hire period. The hirer is then offered the option to purchase the vehicle at the suggested price. Mileage which exceeds the stipulated amount under the terms does not however, mean that the vehicle is not in a reasonable condition.
Damage charges
The vehicle was maintained in a reasonable condition throughout the period of the agreement and therefore such damage charges you are claiming would amount to fair wear and tear; the vehicle does not need to be returned to you in any better condition other than a reasonable one. The vehicle assessment report attached with your letter from City Auction Group (CAG), dated 30/08/2017, clearly gives the vehicle a NAMA (National Association of Motor Auctions) grading of 1. This is evidence to the fact that the car was provided to you in a reasonable condition.
Additionally, I have attached with this letter a report from DMN Logistics dated 30.08.2017 which clearly shows that the only damage noted on the vehicle is a chip / dent less than 10mm on the rear door. This is inconsistent with the report by CAG which classes the extent of the damage as more than 10mm. Section 18.8 of my Hire Purchase Contract defines dents less than 10mm as normal "Multiple dents in any one panel and any dent greater than 10mm in diameter on teh bonnet, boot, roof or above the body moulding lines on the sides of the vehicle is considered abnormal". The report from CAG also notes that there was damage to the OSF wheel. This was not present at the time of collection of the vehicle from me and I am not liable for any damages which occur once the vehicle has left my possession. This applies to the door mirror (NSF) damage as well which was also not present at the time when the vehicle was collected from me.
Photographic evidence was taken prior to the vehicle being transferred to you which clearly shows that the vehicle was in a reasonable condition. The onus is on you to prove that the alleged damage caused was more than reasonable fair wear and tear.
Notwithstanding the above, I have paid circa 54% of the total amount payable and any alleged damage to the vehicle would be covered by these additional payments.
In any event, such sums you are alleging to be owed may only be recovered by a court order only and should you wish to pursue this matter in court, your application will be strongly defended.
Please confirm by return that this matter is now closed.
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