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Old 04-06-2018, 18:10   #22
Kushan
FORMER Virgin Media Staff
 
Join Date: Dec 2010
Location: Warrington
Posts: 4,737
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Re: Virgin Media's £240 early exit fee may be unlawful,

Quote:
Originally Posted by Chloé Palmas View Post
By whose standard? Nobody made anyone else arbitrator / arbiter of all this.
Well....by OFCOM's standard, apparently.


Quote:
Originally Posted by Chloé Palmas View Post
No minimum terms exist so that you commit to the length and duration of the contract.

The only reason that Virgin doesn't have to provide the service, is because the customer cancelled the contract!
And? That doesn't detract from the fact that Virgin no longer has to supply anything to the property - the customer no longer "costs" them anything, so why should the customer pay the full amount for the service?

Quote:
Originally Posted by Hugh View Post
That’s an "interesting" viewpoint.

The contract states they are providing a service to the customer at that specific location, and also states if the customer terminates the contract early (for whatever reason) there will be a penalty charge (depending on the time left on the contract). There is an upfront cost to the supplier for the equipment and installation, which is amortised over the contract period - if this ruling is upheld, I would expect the up-front costs to increase.

If you rent accommodation on a fixed term lease and decide to leave early, you have to pay the remaining rent - what’s the difference?
The point is if you're going to have to pay the full amount, why bother to cancel the contract at all? In both cases, the supplier can supply service to another person in your place, the accommodation can be rented out. I am not saying contracts should be worthless, I am simply saying there has to be a limit on penalty exit fees. If that means higher sign-up fees then so be it.

Not everyone knows their circumstances 18 months from now.
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