Virgin Media's £240 early exit fee may be unlawful,

[Mr K]

https://www.telegraph.co.uk/news/201...les-customers/

Virgin Media customers who have been hit with "early exit penalties" could be offered compensation as telecoms watchdogs have said the charges are unlawful.

Home movers were being penalised with excessive "early disconnection charges" when they moved to an area not supported by Virgin Media before their contract ended.

Oh dear, VM in the dock again. Always thought it was unfair that they charged customers just because VM can't provide a service at a new property. Its VM that are breaking the contract. They are going to have to review that policy and cough up some compensation.

[nomadking]

The contract is supply to property X, not X, Y and everywhere else.


A new contract will either be a new installation with the associated costs, or a renewal that comes with discounts based upon completing the contract period.

[Mr K]

Originally Posted by nomadking

The contract is supply to property X, not X, Y and everywhere else.


A new contract will either be a new installation with the associated costs, or a renewal that comes with discounts based upon completing the contract period.

Well, the telecoms watchdog disagrees and thinks it unfair. Tough luck VM.

[nomadking]

What will happen is that there will be large upfront fees and no discounts for renewal of contract. How is the customer winning?

Originally Posted by Mr K

Well, the telecoms watchdog disagrees and thinks it unfair. Tough luck VM.

But not illegal/unlawful (yet).

https://amp.theguardian.com/money/20...inate-contract

Virgin Media may have breached consumer protection rules by charging customers up to £240 for ending their contract early, according to an investigation by the telecoms regulator Ofcom. In a preliminary ruling this week, Ofcom says it has “reasonable grounds to believe” that Virgin has contravened its general conditions which state companies cannot charge excessive fees that disincentivise customers from switching supplier.

The company may also have fallen foul of Ofcom rules by failing to publish clear information on fees, and by requiring customers who move home to sign a new fixed-term contract or face an early termination charge.

“Having assessed all available evidence, we have reasonable grounds to believe Virgin Media has broken our rules,” says Ofcom. “Virgin Media now has an opportunity to formally respond to our provisional decision. We will take any further representations the company makes into account before our final ruling.”

"May have"

---------- Post added at 08:41 ---------- Previous post was at 08:32 ----------

Title changed, as final ruling has not yet been reached.

[Itshim]

Symantecs they won't change the decision just have to dot the I's and cross the T's

[Mr K]

Do you work for VM Hugh?

[jb66]

So take an 18month contract, after discount period is over pretend to move to a non serviceable address...

I think its fair to stop the new customer discount being abused

[Mythica]

Originally Posted by Mr K

https://www.telegraph.co.uk/news/201...les-customers/


Oh dear, VM in the dock again. Always thought it was unfair that they charged customers just because VM can't provide a service at a new property. Its VM that are breaking the contract. They are going to have to review that policy and cough up some compensation.

How is it unfair? You sign up to a contract, you would be then breaking said contract. It's not Virgins fault that the person is moving.

[jcm193]

Perhaps ofcom should also look at virgin`s policy of putting you on a fresh 12 month contract when you also change your tv/broadband packages etc sky don't do this

Originally Posted by Mr K

Do you work for VM Hugh?

No - facts are our friends.

[Stephen]

Originally Posted by jb66

So take an 18month contract, after discount period is over pretend to move to a non serviceable address...

I think its fair to stop the new customer discount being abused

It's totally fair, also not VMs fault if you do actually move home.

Another UK home phone and broadband provider requires you to email evidence that you are moving home and proovethat it's a non serviceable or poorer service. So they then don't charge an early termination fee.

[OLD BOY]

Surely, discounts only work on the basis of the guaranteed length of a contract? Of course VM should charge a termination fee if the customer breaks the agreement.

Do people these days not appreciate the nature of a contract, which places obligations on both sides? If you buy a car on the never-never on a 4 year repayment plan and you crash it in the first year, does anyone really think they would be let off the repayment because the crash wasn't their fault?

Good grief!

[Kushan]

Originally Posted by OLD BOY

Surely, discounts only work on the basis of the guaranteed length of a contract? Of course VM should charge a termination fee if the customer breaks the agreement.

Do people these days not appreciate the nature of a contract, which places obligations on both sides? If you buy a car on the never-never on a 4 year repayment plan and you crash it in the first year, does anyone really think they would be let off the repayment because the crash wasn't their fault?

Good grief!

The issue isn't anything to do with paying to end a contract early, the issue is that people are being forced to pay too much. Of course Virgin eats installation costs, etc. when a user signs up, that's why minimum contract terms exist, but if you end a contract 10 months early, that's 10 months of service Virgin doesn't have to provide you. Charging people for it is wrong.

[Stephen]

But the point is if you agree to the terms and it's an 18 month contract and decide to leave 6 month into it then yes you will pay the remaining 12 months.

Mobile contracts are the same, you took a 24 month contract and know you have to stay for it but why then 9 months in do you call to try and make up an excuse to cancel it free of charge. I hear things like that all the time at my work.