Voluntary Termination Help!

[lola84]

Hi there!

I'm hoping you may be able to offer me some advice.

Back in August my (2 year old - bought from new) car had to have the engine replaced due to a 'common fault' which causes the third cylinder to disintegrate. The manufacturer had the car for 9 weeks and during that time I lost total confidence in them and the vehicle.

I decided to VT the car and used the letter template from this website to do so. The contract I have states Hire Purchase at the top and has the standard 'nothing further to pay' statement but does include a balloon payment.

The finance company arranged for the car to be collected and taken to auction. The next thing I received was a bill from a debt collection agency for excess mileage and damages to the vehicle - my 'debt' has apparently been sold on to them without any prior correspondence from the finance company.

I wrote to them disputing the charges as i took photos on the collection day which showed no damage and they've since backed down on this point BUT they are still claiming £1,400 in mileage charges as they advise in an email that:

'The Consumer Credit Act stipulates that by paying over 50% of the total amount payable under a hire purchase agreement you may terminate the agreement with no contractual penalties. The excess mileage charge is your end of contract charges.'

Is this correct or does the 'nothing further to pay' stand? And if so, how best should i proceed with disputing the matter?

Many thanks!

Lola

[Guest]

Re: Voluntary Termination Help!

HI

You need to examine your contract, the CCA says that "reasonable care" must be taken of goods, it is usual for this to be interpreted as normal mileage on this kind of agreement generally about ten thousand miles a year, however in order to enforce any charge they usually have to refer to the stipulation in the agreement to prove liability.

[lola84]

Re: Voluntary Termination Help!

HI

You need to examine your contract, the CCA says that "reasonable care" must be taken of goods, it is usual for this to be interpreted as normal mileage on this kind of agreement generally about ten thousand miles a year, however in order to enforce any charge they usually have to refer to the stipulation in the agreement to prove liability.

Thank you so much for your help! I did see the 'reasonable care' phrasing in my contract but didn't know that included excess mileage as it isn't defined any further.

In their email demanding payment they haven't mentioned this section of the contract at all, just that the mileage charge is an 'end of contract charge'.

My big concern is that I have no idea who this company are! They've written to me to say the 'debt' has been sold on to them only 1 week after the car was collected and I've had nothing from the finance company notifying me of this.

I'm worried that, if I do cave and pay up, that the finance company will then turn around and ask for the money themselves as I've got only got the DCAs word for it that they're acting on behalf of the finance company. I did copy the finance company in on my letter disputing the charge but they've ignored it.

[Guest]

Re: Voluntary Termination Help!

Thank you so much for your help! I did see the 'reasonable care' phrasing in my contract but didn't know that included excess mileage as it isn't defined any further.

In their email demanding payment they haven't mentioned this section of the contract at all, just that the mileage charge is an 'end of contract charge'.

My big concern is that I have no idea who this company are! They've written to me to say the 'debt' has been sold on to them only 1 week after the car was collected and I've had nothing from the finance company notifying me of this.

I'm worried that, if I do cave and pay up, that the finance company will then turn around and ask for the money themselves as I've got only got the DCAs word for it that they're acting on behalf of the finance company. I did copy the finance company in on my letter disputing the charge but they've ignored it.

If there is no specific clause in the contract which states this charge(ie so many miles per year), I think it unlikely that they would try and enforce, as a matter of interst how many miles did you do in the vehicle over the period you had it ?

If the charge is unreasonable no court would enforce it even if it is itemized in the contract(unfair term) there is case law to this effect which I will find if you need it.

[lola84]

Re: Voluntary Termination Help!

The contract state 12,000 miles per annum (so 36k for the three year period) and I did 46k over the 2 years and 7 months I had the car.

They've calculated I owe £1,400 in excess mileage, whereas when I run the same calculation using their figures it comes out at £1,200 on my calculator.

The contract itself states that the mileage charge is applicable if the car is given back at the end of term (which in my mind meant the date the contract ends and the balloon payment becomes due) and that on VT there is nothing further to pay beyond the 50% - but they are arguing that the mileage charge is due on VT too as an exit charge.

Also, if the excess mileage fee is due - does it matter that I had paid approx £2,000 over the 50% required when the car was handed back? Or does that make no difference?

[lola84]

Re: Voluntary Termination Help!

Sorry for all the questions, the DCA just seem a bit suspicous to me - the finance company haven't notified us about them and the DCA will only contact me via email or telephone (they refuse to send letters) which seems a bit odd.

Many thanks

Lola :-)

[Guest]

Re: Voluntary Termination Help!

The contract state 12,000 miles per annum (so 36k for the three year period) and I did 46k over the 2 years and 7 months I had the car.

They've calculated I owe £1,400 in excess mileage, whereas when I run the same calculation using their figures it comes out at £1,200 on my calculator.

The contract itself states that the mileage charge is applicable if the car is given back at the end of term (which in my mind meant the date the contract ends and the balloon payment becomes due) and that on VT there is nothing further to pay beyond the 50% - but they are arguing that the mileage charge is due on VT too as an exit charge.

Also, if the excess mileage fee is due - does it matter that I had paid approx £2,000 over the 50% required when the car was handed back? Or does that make no difference?

The amount owed on VT would be the difference between half the total credit price on the agreement plus any hire payments up to the date you returned the car. So if the over-payment was simply the hire charge for the time you had the car after the 50% point this would be a legitimate charge, in other words you have to pay any repayments whilst you have the car.

I think firstly I would question the DCA's right to be demanding this payment, was this debt assigned to them or are they collecting on the behalf of the finance company, do they have all the documentation, you have your agreement obviously, do they ?
Can the verify their claims about the millage, Do not get me wrong , I am not saying that you should tell any lies nor that you should not pay money which is rightfully owed but , I would make them work for it and you never know if you make them work had enough they may just give up

[seduraed]

Re: Voluntary Termination Help!

Who do the Dca Clam to be? If they wont write to you I would suggest that it is a scam report to action fraud and tell the finacne company . Block them on your email or bounce their emails. Don't talk to them insist that all o
communication is in writing ..

[lola84]

Re: Voluntary Termination Help!

Who do the Dca Clam to be? If they wont write to you I would suggest that it is a scam report to action fraud and tell the finacne company . Block them on your email or bounce their emails. Don't talk to them insist that all o
communication is in writing ..

The DCA claim to be a company called RMS Receivables 'appointed to act on behalf of the finance company' (they don't name the finance company in the letter but they do quote my agreement number and vehicle registration).

The website mentioned at the bottom of their emails is an invalid link and the VAT number listed is for another company called something like 'Going Gone'.

We've written to them and stated all communications should be via letter but they responded with a voicemail and then an email demanding we answer the phone and pay up. I've also written to the finance company who have just completely ignored me.

[lola84]

Re: Voluntary Termination Help!

Well today I received a call at work (transferred to me by a colleague who said my friend 'Wayne' was on the line) - working in sales and assuming it was a customer, I took the call and he instantly launched into his 'confirm your address/DOB' spiel.

When I refused he demanded to know why and then demanded I respond to their communications immediately - then hung up on me.

Are they allowed to call you at work? Surely there should be some sort of rule against that!