What are rules regarding referral to a debt collection agency?

Maria358

Hello, hope someone can help here.
I had to move house towards the end of last year last year and, as a result, had to cancel a Virgin broadband contract as they do not supply in the area I moved to.
They have since charged me £188 for cancelling the contract which I have not yet paid.
They keep sending me reminder bills with new dates for payment on. However, they have also referred the bill to debt collection agencies without telling me they were/are doing so. 
Surely there must be some rules about this? Do they have to notify me that they are referring this?
They are sending me bills giving me alternative dates to pay.
I have started writing a letter of complaint as I'd like to know exactly how it has cost them £188 to cancel the contract. I've been in a similar situation with BT and had to cancel the contract early and they did not charge for it.
However, I'd also like to know whether they have contravened any rules with regards to how they are handling things.
Needless to say never, ever again will I be a Virgin Media customer!
Thanks in advance 

listric

I'm afraid that, if they do what they did to me they will lie constantly, tell you a manager will call but they don't, say they've taken notes but lie on the notes, do not provide an email address for you. In short, you need to protect yourself by recording any and all calls that you do make. There is one key summary about Virgin Media - they cannot be trusted - even to follow their own Customer Complaints code of practice because they will not do so.

I recommend that you tell Watchdog and as many other consumer sites as possible. Adverse publicity is about the only thing Virgin Media seems to care about. In my opinion they are not a reputable company. I'm afraid to say that MSE is unlikely to do anything positive to help you, given my experience.

Good luck.

cymruchris

What was the agreement in your original contract? The one you signed/digitally signed/verbally agreed when you started the service? You did sign a contract of X months at £X a month - and have decided to move house - and although Virgin don't supply your new area - you were still in that agreed contact period of X months at £X a month. You need to have a look at your original agreements. I suspect there'll be a clause in there that says if you decide to move house, and we can't supply, you're still liable for the contract to completion - or something similar.

As for debt collectors - there are no rules really - if you're not paying a bill - any company can employ a debt collector to chase you for the payment. They don't have to tell you that they are going to take that action.

Some companies (as you've experienced) don't charge when a house move happens - others do - and I think Virgin happens to be one of them. (Rightly or wrongly so - I'm not personally in favour of a company charging when they can't supply a new property). 

unforeseen

I'm not personally in favour of a company charging when they can't supply a new property

So you are in favour of people being able to break a contract without penalty? The contract is to supply a specific address and its the customer that is wanting to change the contract. 

cymruchris

unforeseen said:

I'm not personally in favour of a company charging when they can't supply a new property

So you are in favour of people being able to break a contract without penalty? The contract is to supply a specific address and its the customer that is wanting to change the contract. 

I’m in favour of a bit of fair-play - whereby if they supply the area the contract continues - and where they don’t - at least a token gesture is given towards the cost of termination fees, with only the full fee applying if they supply and you choose not to continue. 

That doesn’t help in this case though - i suspect it’ll be in the contract the op signed that they’d still be liable even if they moved. 

elsien

It is likely that regardless of what BT did, there is something in your contract which covers your circumstances. It is unclear whether you’ve checked that out.

If there is an obligation to pay, then of course VM are going to be taking steps to recover the money given that you are ignoring their requests for payment. What did you expect them to do? 

Having said that, debt collectors have no authority without a CCJ behind them. Which you would get letters about if VM went that far.