Voluntary Termination - Excess Mileage

[Her Majesty]

Hi
I currently have an HP agreement with Black Horse via LandRover Freedom finance and am about to enter into another agreement with them as the business manager recommends handing my car back is the best thing to do given the negative equity I now have in it. He said it was the good thing about HP as it "protects" you. I was pleased to hear this as it saves me about £2.5k but also then disappointed to hear it goes against you from a credit rating perspective. The other thing that is really difficult for me to understand is if the excess mileage is applicable. My agreement states maximum mileage of 49000 which is exactly what I've now done only a year earlier. The agreement contradicts itself as in one section it says once you've reached halfway which I have, there is nothing more to pay and then in the small print it says you cannot exceed the maximum mileage without incurring payment. However, it does not say that that mileage number is pro rata'd and so I'm wondering whether that count's for anything?

I've asked them to send me their figures which supposedly takes 7-10 days but being the impatient person that I am, I want to go ahead and get the other agreement in place which was done conditionally on the basis I have nothing to pay and can walk away.

Any advice welcomed
HM

[Amethyst]

Re: Voluntary Termination - Excess Mileage

Just tagging [MENTION=71570]R0b[/MENTION] for you

Also see http://www.experian.co.uk/blogs/cons...-credit-score/ ( I'm sure there's more stuff about VT and CRA's about that's just first thing I came across and it's James, and he's pretty spot on most of the time ) -- ooo poss also [MENTION=48934]Debt Camel[/MENTION];

[jaguarsuk]

Re: Voluntary Termination - Excess Mileage

There is another thread about excess mileage after the half way point of the agreement, peeps will be along to help your specific situation and in the meantime have a read here: http://www.legalbeagles.info/forums/...rcedes+excesas

[R0b]

Re: Voluntary Termination - Excess Mileage

Hello, excess mileage charges is well covered across this forum, I would suggest you read the guide to get a background to how VT works and what you are liable for.

http://www.legalbeagles.info/forums/...on-Your-rights

As for affecting your credit file, I think this is more of a myth than anything else. Exercising your right to VT will not affect your credit score in any way, lenders are entitled to report your account as having VT'd because that is accurate. Each lender has their own criteria and upon doing a credit check part of the lending criteria might be whether or not you have recently VT'd agreement. This being a potential risk they may choose to give you a less favourable interest rate than you might have expected or they might not want to deal with you, though unlikely. If you wanted to obtain credit from the same lender then you might encounter some problems insofar as they may reject you on the basis you VT'd last time so not worth the risk. But given the vast amount of deals available and lenders who offer financial credit for vehicles, I don't think you should be too worried about it.

If however, the lender reports any adverse entries on your file i.e. outstanding balance shows or the account is 'partially settled' or a default amount etc. then that is damaging and would likely amount to a breach of data protection for which they would be liable.

[Debt Camel]

Re: Voluntary Termination - Excess Mileage

As for affecting your credit file, I think this is more of a myth than anything else. Exercising your right to VT will not affect your credit score in any way, lenders are entitled to report your account as having VT'd because that is accurate. Each lender has their own criteria and upon doing a credit check part of the lending criteria might be whether or not you have recently VT'd agreement. This being a potential risk they may choose to give you a less favourable interest rate than you might have expected or they might not want to deal with you, though unlikely. If you wanted to obtain credit from the same lender then you might encounter some problems insofar as they may reject you on the basis you VT'd last time so not worth the risk. But given the vast amount of deals available and lenders who offer financial credit for vehicles, I don't think you should be too worried about t.

I agree with this. VTing will not show as a default on your credit record, it is a legal option under your HP contract and you are just exercising that option.