Service Plus Contract over-run adjustment charge

[Bobby Dazzler]

As many regulars will know, I've generally been pleased with the value offered by the Service Plus Contract we had on our ML270 CDi. Based upon un-discounted retail charges, we paid only a fraction of the cost of work done to the car during the two years covered by the contract.

Based upon my experience though I would suggest that you retain your paperwork beyond expiry of your Service Contract. I almost threw mine out a couple of weeks ago, as the contract had expired by more than a month, however I'm glad I didn't as I needed to refer to it today.

I received an invoice on Friday for £285, from our friends at MB Service Contracts. This was supposedly due to exceeding the agreed distance at final review, what they call an over-run adjustment charge, or to you and me, "you went over your agreed mileage so you owe us some money".

My contract was for 14,000 miles per year over two years - so 28,000 miles in total - with an excees charge of 4.2ppk. Based upon the amount invoiced, it seems they were charging me for more than 3,500 miles, which would be a total distance covered of 31,500 during the two year period.

I actually covered 20,998 miles during that time. Not only is that 7,000 miles below the agreed mileage limit set in the contract, but 10,500 miles below what they were intending to charge me for!! So I called Service Contracts today to ask how it was calculated.

The lady I spoke to went in to her explaination, and ended with "...and so we're charging you extra because you actually covered 20,998 miles" - or words to that effect. Then the penny dropped.

She apologiesed and said she will raise a credit, but couldn't explain how it came about.

Just before the contract ended I had a whole heap of work done, and I wonder if this was an attempt to recover some of the cost. Hopefully not as that would be a bit naughty.

If anyone else gets a similar invoice, please add your details to this thread, as it would be interesting to see if a pattern emerges!!??

 

[prprandall51]

That's lucky for you. the contract wording (IIRC) specifically states that, if you do less miles than you have contracted for, no refund is due. I.E. they can bill you for going over the agreed mileage but you get nothing back for coming in under that figure.

Bank that cheque quickly!

 

[Bobby Dazzler]

That's lucky for you. the contract wording (IIRC) specifically states that, if you do less miles than you have contracted for, no refund is due. I.E. they can bill you for going over the agreed mileage but you get nothing back for coming in under that figure.

Bank that cheque quickly!

You're right about the wording. Sadly though no cheque. The credit is simply to cancel out the invoice as they can't cancel the invoice, only issue a credit against it so there is no money outstanding.

 

[Ali_H]

Have you checked your bank account? Don't forget they have a signed direct debit!

 

[Bobby Dazzler]

The letter said they planned to take the money by DDR on 15 November, so I'll need to wait a little while to see if anything goes!!

 

[Geezer]

Cancel your DD Now!