Virgin - Early Disconnection Fee

SleepingApe

Hi all, keen to get the view of the group on whether I've any options to avoid paying an early disconnection fee to Virgin?

I signed a new contract with them back in August. I've since had to move house, to an area that Virgin doesn't cover, and they want to charge me a £240 early disconnection fee. According to the small print, I owe them the money, but interested if anyone has a view on the legality (never mind the morality!) of this charge or any advice on how to reduce the level of the fee? 

I'm pretty frustrated as I've been a loyal customer for 11 years, but their customer service on this issue has been very poor (to be fair it's never been great) - unresponsive / weirdly garbled emails etc - and so far they're not budging. 

Thanks!

Neil_Jones

Discussed many many times.  TL;DR - You chose to move to an area Virgin don't supply.  Not Virgin's fault.

matelodave

As Neil says, you decided to move and break the contract and Vigin are no different from any of the other ISP's.

Most (but not all) will waive the ETC if you sign another contract with them at the new premises but if they can't offer a service or you decide to move ISP for any reason then they will invoke the charge.

SleepingApe

Fair enough - thanks for the replies. Still seems like a lot of money after being a good customer for so long. I'd have hoped loyalty and good will would count for something, but clearly not. 

Neil_Jones

SleepingApe said:

Fair enough - thanks for the replies. Still seems like a lot of money after being a good customer for so long. I'd have hoped loyalty and good will would count for something, but clearly not. 

Loyalty stopped meaning anything ages ago.  In the cut throat world of digital services its all about attracting new people with special offers, then hoping they forget to renew and pay full whack without question 18 months later.

Moral of the story (this comes up quite regularly), don't agree to a new 12/18/24 month contract if you think there's a chance you might have to move.  If the house blows up because you left the gas on and ultimately has to be demolished, that's one thing, but you deciding/having to move for work/family/fun is another, unfortunately.

CJ636

Well just surprised as the unsupportive replies to SleepingApe.  If someone decides to move house prior to a contract has concluded where the service cannot be provided by the supplier in the new house and the supplier then charges a penalty - this is wrong morally and ethically and is the type of sharp practice you would expect from a poor quality company.  The practice is being investigated by OFCOM see article in 'This is Money' sorry site won't allow me to put the link. 

'The investigation will look into whether the penalty fees charged by Virgin Media for phone, broadband and TV contracts act as a disincentive for customers to switch providers.  It will also investigate whether the early fees comply with the rules in the Consumer Rights Act 2015 on early termination charges. Exit fees are charged by all providers if you leave a contract early and they are required to be 'fair and reasonable' and to reflect the work carried out and the loss to the company of the contract ending early.But Virgin Media works slightly differently to all of the other major providers.

It charges an early disconnection fee to customers if they end their contract early, even if the reason for ending the contract is because the customer is moving home and Virgin isn't available in the new property.

The majority of other phone and broadband providers do not charge customers in this situation.

Virgin has its own fibre network and only properties connected to this are able to access the provider's services. This is different to the other major providers, which all use BT's Openreach network of cables.' 

I hope that assists.......

CJ636

A follow up to this if you do some online research although Virgin Media do not relent as a matter of course people have had success by complaining to their customer service department.

CJ636

Is it a thing with the Virgin Brand in 2013 travelling back from the USA with my wife (regular Virgin Atlantic flyers).  At MCO was approached by a Virgin Representative asking if we wished to upgrade - we were travelling economy and had booked the best seat for us using 'seat guru'.  He quoted $100 in total - bargain I thought, he took he straight to the business class book in and we went straight through. I assumed an upgrade from economy would be to premium economy.  Went through security checked on the laptop where the 'upgraded seats' were still in economy.  Complained and finally managed to talk to a Virgin Atlantic manager - after other Virgin staff said 'Oh not again' who stated that his member of staff wouldn't have sold me an upgrade - he thought I was being argumentative when I asked what I had paid $100 for (I know its a small amount for an upgrade - but thought it was a valid question) finally got my refund - I asked for my original seats which had been sold on - so had to sit in other seats (which we would not have picked) - I suppose a downgrade.  I have never travelled by Virgin Atlantic again although we still prior to COVID travelled over on a regular basis.  Sorry for my rant hate anyone being ripped off or poor service..

JSmithy45AD

CJ636 said:

Well just surprised as the unsupportive replies to SleepingApe.  If someone decides to move house prior to a contract has concluded where the service cannot be provided by the supplier in the new house and the supplier then charges a penalty - this is wrong morally and ethically and is the type of sharp practice you would expect from a poor quality company.  The practice is being investigated by OFCOM see article in 'This is Money' sorry site won't allow me to put the link. 

'The investigation will look into whether the penalty fees charged by Virgin Media for phone, broadband and TV contracts act as a disincentive for customers to switch providers.  It will also investigate whether the early fees comply with the rules in the Consumer Rights Act 2015 on early termination charges. Exit fees are charged by all providers if you leave a contract early and they are required to be 'fair and reasonable' and to reflect the work carried out and the loss to the company of the contract ending early.But Virgin Media works slightly differently to all of the other major providers.

It charges an early disconnection fee to customers if they end their contract early, even if the reason for ending the contract is because the customer is moving home and Virgin isn't available in the new property.

The majority of other phone and broadband providers do not charge customers in this situation.

Virgin has its own fibre network and only properties connected to this are able to access the provider's services. This is different to the other major providers, which all use BT's Openreach network of cables.' 

I hope that assists.......

Unsupportive? They asked a question and it was answered correctly, if you want someone to cuddle you then mums net may be a better choice.

Neil_Jones

CJ636 said:

Well just surprised as the unsupportive replies to SleepingApe.  If someone decides to move house prior to a contract has concluded where the service cannot be provided by the supplier in the new house and the supplier then charges a penalty - this is wrong morally and ethically and is the type of sharp practice you would expect from a poor quality company.  The practice is being investigated by OFCOM see article in 'This is Money' sorry site won't allow me to put the link.

You've quoted an article from July 2017.  That was updated in 2018:

https://www.thisismoney.co.uk/money/news/article-6411309/Probe-Virgin-Medias-hefty-exit-fees-customers-house-mid-contract-dropped.html

"a separate investigation into its policy of charging customers exit fees if they move to an area it does not supply has been dropped.  Instead, Virgin agreed to make it clearer on its website and during phone calls that it only provides a service to around half the UK, and customers would be charged for moving outside the network."

Case closed?

And the posts are not "unsupportive".  They are correct.  Whether its wrong morally and/or ethnically is beside the point.  The exit fees are what you agree to if you up sticks and shove off to an area they don't supply.  Virgin could insert a clause saying you can use their services if you agree to wear a big nose and baggy pants at all times while doing so.  If you don't, and they find out, you're out.  Silly example yes but point is valid.  Need to read what you agree to.