Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.
Do you accept you are in excess mileage please?
Alex, on a retrospective basis, I am in excess, my milage is very erratic and my verbal understanding was that the 100,000 miles over four years would not be applied retrospectively, however there are vague clauses to this effect in the contract. I acknowledge it is not unreasonable, however is there any legal grounds for challenge, accepting my understanding of Voluntry termination is that it ends everything ? As a footnote, there was modest damage to the car when returned and I have happily settled this modest invoice
Could you provide the terms relating to mileage please?
Annual Mileage Allowance : 25000 miles
Excess Mileage Charge for miles between 100 & 115% of the Annual Mileage Allowance : 8.25 pence per mile
Excess Mileage Charge for miles over 115% of the Annual Mileage Allowance : 12.38 pence per mile
The Excess Mileage Charge shown will be payable for each mile driven in excess of the Annual Mileage Allowance. This will be charged on expiry, or
the earlier ending of the Agreement, or where you request us to act as your agent to sell the Vehicle (see paragraph 14 of the Terms and Conditions).
Alex, sorry copied and pasted above, four year agreement at 25,000 miles per annum
Mileage at handback 28/4/14 (start date 2/12/11) totalled 94,315 miles.
Alex, the clause of note is
9.4 Excess Mileage Maintenance Charge
Where Optional Repair and Maintenance Service has been selected if the Annual Mileage Allowance is exceeded you will pay to us the Excess
Page 3 of 5 a LeasePlan Brand DW1 01.02.11
Ref: 2183 Version 3 (02/11)
Mileage Maintenance Charge in the amount stated in the Schedule in respect of each mile travelled in excess of the Annual Mileage Allowance
during each year and so in proportion for any less period than a year. Such Excess Mileage Maintenance Charge is payable at the end of the
Term or, if earlier, upon termination of this Agreement or the hiring howsoever arising together with any VAT at the then current rate.
My question is : does voluntary termination (rights/law) negate such clauses. I have been advised by unqualified guidance that it does, however your opinion is key. I can send all the paperwork if required.
So you had it for 2 years and 5 months?
So you could have done about 60,500 miles, but you did 94k?
Ok - you are bound by the excess mileage clause as you probably know
This means that although you did 94k miles you could have done 60,500
Sadly therefore you have done 33,500 miles too many or there abouts
This figure is pro rata
Even though there has been voluntary termination you are still liable for this excess charge
This is because you signed a contract and agreed to it
Therefore the terms are binding
They can't change you for all miles only the pro rata exccess ones
I am sorry if this is not the answer you are after and certainly not the one I want to give you, but I have a duty to be honest
Can I clarify anything for you about this today please?
You may be slightly confused
1) The creditor can not charge you for ending the agreement, that is true
2) The creditor can charge you for any damage
3) The creditor is still able to charge for any breach of the agreement.
You agreed to do 25k miles a year, you did more
The creditor is entitled to charge for this
But he can't charge you for ending the agreement
Sadly you are liable for the excess mileage
Does this clarify?
You have protection under the Consumer Credit Act 1974 that is true
And there were amendments made by the 2006 Act
But the Act only applies to not allowing the creditor to charge you for termination etc
It does not prevent a creditor charging for breach of the agreement, which this is technically
You can negotiate the rate and amount charged, but there is still a breach because you agreed to do 25k miles and did not
The only thing you could potentially argue is that the term is unfair
The Unfair Terms in Consumer Contracts Regulations 1999
5. (1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.
(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term.
That is your only point. But it may involve Court proceedings and it may not be a small claim if there is a legal argument.
That is the risk
Can I clarify anything for you about this?