Mercedes drivers taken for ride on fees

MERCEDES-BENZ has been forced to hand back thousands of pounds in excess mileage fees it charged to drivers, after a ruling by the consumer watchdog.

The German car maker’s hire purchase arm has been ordered to waive or return penalties, which were more than £4,000 in some cases. It had billed drivers between 9p and 16p plus VAT for every mile they went over their agreed limits.

However, the Financial Ombudsman has ruled that Mercedes-benz Finance was in breach of consumer rights rules when it hit drivers with penalties on their contracts. The fines affected customers who had opted to end contracts early.

Close to 500 people complained to the ombudsman about the lender between July and December last year, with more than a third of complaints resolved in the consumers’ favour.