Virgin to reduce price of non Direct Debit payments from 1/4/16.

[RichardCoulter]

A VM customer says that they have received the following email from VM:

'as you don’t currently have a Direct Debit set up for Virgin Media bills, we wanted to let you know that, starting from 1st April 2016, we’re reducing your payment handling charge from £5 a month to 45p a month. You'll see this change on your April bill.
Kind regards,

The Virgin Media team'

I wonder why they are doing this?

I'm sure this will be welcomed by those who pay a fee for non Direct Debit payments, but many companies charge more to reflect the extra cost of processing these payments.

Maybe they have been required to charge only their actual extra costs??

[heero_yuy]

I have to wonder what costs are involved in a totally automated payment system? Our local council makes no charge for online payments made with debit cards, why do VM make any charge at all? Apart from trying to rope you in to a contract.

[v0id]

Maybe they're doing this because I bet their statistics show that most of the non direct debit payers are on low incomes or benefits????

[RichardCoulter]

It would be a nice thought, but like most corporate companies, I imagine that VM couldn't care less about those struggling on benefits.

I have disabled friends who are unable to work, yet they are required to jump through more and more hoops as their money is cut further and further.

More likely they realised its driving potential customers away.

[denphone]

Yes the £5 charge is pretty steep compared to other companies.

[Taf]

Perhaps they have been told they can't charge more than it costs them. I vaguely remember something like that with Bank letters a while back?

[Kabaal]

Looking through my past bills mine changed to 45p months ago, the same time i last changed my package.

[nashville]

Glad to read this one, A good discount for people who do not pay by DD

[RichardCoulter]

Originally Posted by Taf

Perhaps they have been told they can't charge more than it costs them. I vaguely remember something like that with Bank letters a while back?

That's what I was thinking Taf, I can't see them doing this voluntarily.

Maybe we will have a situation where people will attempt to claim back the notional overpayments from the companies, like the bank charges/PPI situation??

[RichardCoulter]

Here is the reason why this was done:

http://www.ispreview.co.uk/index.php...-fees-45p.html

I urge anyone who was charged this outrageous fee to ask VM for a backdated refund or consider taking legal action against them to facilitate recovery.

[Kabaal]

Originally Posted by RichardCoulter

I urge anyone who was charged this outrageous fee to ask VM for a backdated refund or consider taking legal action against them to facilitate recovery.

If that would work i'd be owed a few hundred quid

[Taf]

Originally Posted by RichardCoulter

Here is the reason why this was done:

http://www.ispreview.co.uk/index.php...-fees-45p.html

Ye Gods I was right!

[Mancscable]

Virgin Media customers who choose to pay their bills by any method other than direct debit have, until recently, always been charged a "payment handling charge" of £5 a month. The Consumer Rights (Payment Surcharge) Regulations 2012 came into effect in April 2013. In effect, this legislation prevents businesses from charging customers more than the cost of processing payments. In other words, if the bank charges Virgin Media 45p for processing a customer's cheque, VM can only levy a payment handling charge of 45p to that customer. The Regulations include a consumer right of redress provision, which says that if a business charges more than the cost of processing a payment, the excess charge is contractually unenforceable and that the customer is entitled to be reimbursed any excess charges. Therefore, any Virgin Media customer who has paid the monthly £5 payment handling charge since April 2013 is entitled to claim a refund. The amount of the refund is £5 less the actual cost of processing the payment. The cost of processing payments varies, but it is unlikely that Virgin Media's bank charges more than 45p for processing any type of payment. Therefore, customers who have been paying by any means other than direct debit since April 2013 are now entitled to claim a refund which should be not less than £159.25 i.e. £5 - 45p= £4.55 x 35 months (May 2013 to Mar 2016). In fact, the cost to VM of processing some types of payment will be less than 45p (e.g. payments by debit card), so the refund will be more than £159.25. Any customer who has paid a Virgin Media bill by any method other than direct debit at any time since April 2013 should now contact Virgin Media for a refund. If Virgin Media refuses to make a refund, customers should report the matter to Ofcom.

[multiskilled]

Thanks, will look into this for my mother in law who couldn't change to direct debit payments, and has been paying this charge since it was introduced.