Account balance has gone over credit limit?!

[mmvm]

I haven't been on Virgin broadband for 2 months yet and already there are problems. I'm currently on the L package (10mb) and it's totally wireless, and it should be £15 a month, or so I'm told.

But I got a letter in today that "my account has gone over my credit limit", and I have to pay £66.25 to make this all OK.

What exactly is this about? I'm a little angry and confused!

Thanks

mmvm

[Mick Fisher]

Best to phone and ask them what the hell they are playing at. Otherwise you risk losing your service. Once this happens, regardless of your credit status, it seems to be a devil of a job to get it restored.

Good luck.

[esdxc37]

Originally Posted by mmvm

But I got a letter in today that "my account has gone over my credit limit", and I have to pay £66.25 to make this all OK.

You have 2 credit limits a shadow credit limit and a credit limit.
When you go over the shadow credit limit it generates a letter to say you are approaching your credit limit and needs a payment to get you under the sahdow limit.
going over the shadow limit does not redtrict your service but the letter is sent to tell you this before you go over the upper credit limit which restricts your service.

It sounds like your 1st bill has been produced and it is a double bill plus install charges and any other charges which very often take customers close to or over their credit limit.

If you have ebilling check online

[AntiSilence]

But what is this credit limit on a broadband connection and how do you go over it? I know there's a credit limit on the TV package, but the OP didn't say he had TV.

[BenMcr]

There is a Credit Limit that can be placed on the account - so covers any services a customers has

Sounds like the OP first bill is for two month + install which would be around £60 or there has been an issue with the Direct Debit

[esdxc37]

Originally Posted by AntiSilence

But what is this credit limit on a broadband connection and how do you go over it? I know there's a credit limit on the TV package, but the OP didn't say he had TV.

All cust are credit checked whether they take just bb or all 3 services.
Depending what the credit check reveals there may be a credit limit placed on account, it can be from £60-£120 which raises over time and good payment history.

In my experience customers are never told of their credit limit and indeed the 1st they may know is when the services are restricted or they get a letter which tells them they are approaching their credit limit(gone over the shadow credit limit)

[AntiSilence]

Originally Posted by esdxc37

All cust are credit checked whether they take just bb or all 3 services.
Depending what the credit check reveals there may be a credit limit placed on account, it can be from £60-£120 which raises over time and good payment history.

In my experience customers are never told of their credit limit and indeed the 1st they may know is when the services are restricted or they get a letter which tells them they are approaching their credit limit(gone over the shadow credit limit)

I realise that they're credit checked, but I was unsure as to how a credit limit would apply to a broadband connection. I understand how it applies to, TV say, for things like PPV and FilmFlex.

[BenMcr]

an account Credit Limit relates everything - Service charges as well as calls and PPV events

[esdxc37]

Originally Posted by AntiSilence

I realise that they're credit checked, but I was unsure as to how a credit limit would apply to a broadband connection. I understand how it applies to, TV say, for things like PPV and FilmFlex.

A new customer may have a credit limit of say £60.
he is on xl bb at say £25 PM*(see below)
2 months at £25 PM = £50
install fee = £30
£80 total meaning 1st bill takes him over credit limit by £20 even if he has DD set up.
The Credit limit can be raised as this should not occur but it takes a call to CS to get it resolved as services would automatically be restricted.

*these prices are fictitious and no way represent VM pricing

[AntiSilence]

That's insane. Your first bill making you over your credit limit already... Surely the installation fee should not be added against a credit limit? How many new customers will be phoning up annoyed that they're over a credit limit they know nothing about, or even why?

[BenMcr]

Originally Posted by AntiSilence

That's insane. Your first bill making you over your credit limit already... Surely the installation fee should not be added against a credit limit? How many new customers will be phoning up annoyed that they're over a credit limit they know nothing about, or even why?

1) All customers should be told about the Credit Limit

2) If Customers has a Credit Limit the sales agent is supposed to take an upfront payment that is enough to cover the install fee.

3) The customers should then be encouraged to make payments towards the first bill to stop the services going off

[AntiSilence]

Originally Posted by BenMcr

1) All customers should be told about the install fee

2) If Customers has a Credit Limit the sales agent is supposed to take an upfront payment that is enough to cover the install fee.

3) The customers should then be encouraged to make payments towards the first bill to stop the services going off

That makes more sense, but does it always happen like that?

[esdxc37]

Originally Posted by AntiSilence

That makes more sense, but does it always happen like that?

NO

[mmvm]

It's alright lads I fixed the situation. I called them up and they explained that I was being charged because they hadn't applied the offer for £15 a month for the first 3 months, apparantly they "forgot." I was being charged that for the quick setup delivery which was 15 quid for no reason; they charged me that so I could set it up myself in about 6 minutes.

But it's been rectified and the charge has been dropped to 30-something. I never did understand what the credit limit was in the end, the kind man trying to shaft me didn't explain, but as long as I got my finances right that's all that matters.

[AntiSilence]

Originally Posted by esdxc37

NO

Could you shout a bit louder? They didn't hear you at the back there.