VT with Motonovo/Carlyle Finance

[BWBW]

Hey all, new to the forum so a big howdy to start with! HOWDY!

I purchased a car through Evans Halshaw in May 2011 and the Hire Purchase was with Carlyle at the time who subsequently was bought over by Motonovo.

I recently wrote to them advising them of my wish to voluntary terminate the contract using the following letter:

"I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the Consumer Credit Act 1974. You will understand that the aforementioned section permits the debtor to terminate the agreement at any time before the last payment is due. There is no restriction regarding the exercising this statutory right, particularly none in respect of any perceived arrears or monies due on termination

I we understand that I shall will be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974. Please forward notice of any sums lawfully due for consideration and payment. From our telephone conversation this amount is £369.38 however can you advise if this takes into account September’s payment.

The above agreement will be terminated 14 days from the date of this notice.**

Please send me details of how the vehicle can be returned to you.

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address.
Please confirm receipt of this request by telephone/email or in writing"

What I was unaware of was that they are trying to imply is the following:

1. Excess mileage charges, apparently I'm limited to 12000 miles per year (1000 per month) which i was not aware of when i procured the car.
2. The letter i received claimed that they would apply charges if the vehicle was not serviced in accordance with manufacturers reccomendations yet I can find no mention of this in the agreement letter which i had them sent out to me. What it states is that if i've paid more than or up to 50% and taken reasonable care of the vehicle then i can return it with nothing else to pay.

Am I right in thinking that the Consumer Credit Act overrules any of their said terms and conditions?

I.e. as there is no mention of mileage etc within this and provided i've taken reasonable care and paid more or up to 50% of the total amount then I can hand the vehicle back?

Thanks in advance.

Chris

[Guest]

Re: VT with Motonovo/Carlyle Finance

Firstly whatever the say they cannot stop the termination process.

All the act says is that "reasonable care" must be taken of the goods. This is quite a broad definition and it does not go into detail, it is true to say that the creditor cannot place too heavy a burden on the hirer with a contractual term, however average mileage is about 12000 miles I believe, and servicing the vehicle as per the manufactures guidance could be considered as reasonable care IMO.

However how much ( in monetary terms ) importance the creditor places on these requirements is a mater for negotiation after the car has gone back.

As the last resort it would be for the court to decide,

[BWBW]

Re: VT with Motonovo/Carlyle Finance

I think I'm about 1000 miles over for the allocated mileage allowance.

What I was looking for was for guidance whether the cca overrules their terms and conditions etc.

also, I have noticed that since I have sent and them acknowledging the vt letter they have still took payment from my bank account...

[Guest]

Re: VT with Motonovo/Carlyle Finance

I think I'm about 1000 miles over for the allocated mileage allowance.

What I was looking for was for guidance whether the cca overrules their terms and conditions etc.

also, I have noticed that since I have sent and them acknowledging the vt letter they have still took payment from my bank account...

Their contract cannot override the provisions of the act(section 173 forbids contracting out), however from what you say they are not, they are asking that the reasonable care has been taken, which is what the act says.

You should set the timescale for the termination and cancel any payments when the notice period expires.

[BWBW]

Re: VT with Motonovo/Carlyle Finance

Yes but would mileage dictate reasonable wear and tear?

[charitynjw]

Re: VT with Motonovo/Carlyle Finance

As an aside here, Motonovo appear to be taking a hard line.
I would suggest taking lots of pictures of the vehicle just prior to surrendering it.

[labman]

Re: VT with Motonovo/Carlyle Finance

How old is the car? 1000 miles over on a 5 year old car is very different to 1000 miles over on a 6 month old car.

Reasonable wear and tear is what it says and would be determined by a multitude of factors including mileage, state of interior and exterior, service record and where serviced, record of receipts for parts replaced, etc... It could be argued to cover a big range of things.

[labman]

Re: VT with Motonovo/Carlyle Finance

As an aside here, Motonovo appear to be taking a hard line.
I would suggest taking lots of pictures of the vehicle just prior to surrendering it.

...... this would come under the condition report, and normal advice is to do exactly as Charity suggests with a copy of that days paper in them so the date cannot be argued.

Also, the car is likely to go straight to the auctions, not back on to the dealer's forecourt, so if they charge for removing a dent, you are perfectly entitled to ask to see the receipt for this work (it won't have been done in all probability).

Most dealers / traders take a hard line on VT's as they really don't like the fact people know they can do them.

[Guest]

Re: VT with Motonovo/Carlyle Finance

At the end of the day it would be down to the court to decide what was reasonable care, the organisation mentioned quotes between 12 and 15 thousand miles a year this seems to be an industry standard so I suspect they would use that as a guideline, the additional charge per mile after this would have to be negotiated.