BMW PCP early settlement charges
Discussion
I wondered if anyone could clarify in layman's terms what BMW are legally allowed to charge when it comes to settling a PCP agreement early, for example on personal loan type products I understand that its generally around 60 days interest of the remaining capital as a penalty / charge for early repayment. I've tried to figure out this out for a PCP type agreement but it doesn't appear as simple as that...
For example if I wanted to settle an agreement 10 days after it began what should I be expecting to pay on top of the original capital value (assuming no payments have been made yet)
For example if I wanted to settle an agreement 10 days after it began what should I be expecting to pay on top of the original capital value (assuming no payments have been made yet)
Agreement has already been paid off, the problem stems from the fact that they took 2 weeks to provide a settlement figure that was then valid for a further 28 days, which effectively added almost £600 to the final balance as some form of early repayment charge, its this figure that I'm trying to get to the bottom of.
I tried to call everyday for almost two weeks to get a settlement figure, also requested a customer call back, and requested a settlement figure via the online portal, funds were in place to pay off the agreement (made a separate thread on PH about problems contacting them at the time) but tardiness on their side meant that the 14 day period had passed before I could physically speak to someone, get the figure and pay it off.
Fast Bug said:
Have you proof of trying to contact them etc? If so, have you escalated it within BMW financial Services? You shouldn't have to pay for them being rubbish
Yes, a complaint has been made to BMWFS customer services detailing all attempts at contact with relevant dates, also have call logs on phone to prove I tried calling when I said I did. I have since heard back and they have effectively offered £100 as an apology for the poor service on the condition that the matter is closed and I don't contact the ombudsman (which is what I threatened them with in the original complaint)I appreciate that I'm liable for some interest, I just want to understand how it is calculated, I cannot for the life of me figure out how they get to £593 on a 29k balance that was paid off 4 weeks to the day that it was taken out.
Butter Face said:
If you pay it off within the first 14 days you are withdrawing not settling. They are different things.
I believe it's 14 days from signing rather than delivery - most finance agreements are signed a few days early. If it was There's a similar recent thread on one of the Mercedes forums I frequent. The guy on there settled after a month or so but the interest was twice what he expected. I think it was just that he thought he should pay 1 month interest and not the usual max 2 months.
He didn't bother complaining or going to the Ombudsman - he issued a small claim! Despite his claim being probably unreasonable, MBFS settled straight away.
Butter Face said:
I did put that about 3 posts up 
You did! I do wonder how hard and fast this is? I've heard VWFS aren't strict about the timing, and VAG being flexibe about anything isn't what you'd expect. Although they did tell assure us we had 28 days to actually pay, even though all the emails and letters said 7 days.
All sorted, thanks for the help. They got back to me within a couple of hours after I emailed to decline the goodwill payment and said I would be seeking the advice of the ombudsman.
A good chunk of the £600 was actually the first payment due on the agreement (even though it wasn't due when I requested the the settlement figure) that has been refunded and they've also kept up the offer of the goodwill payment so overall to settle, I've repaid slightly less than initially borrowed.
A good chunk of the £600 was actually the first payment due on the agreement (even though it wasn't due when I requested the the settlement figure) that has been refunded and they've also kept up the offer of the goodwill payment so overall to settle, I've repaid slightly less than initially borrowed.
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