Virgin Media ludicrous proposal

Chomeur

I pay £44/month for Virgin Media. Now they want to reduce that to £38/month but increase it annually by the RPI + 4%. What kind of business plays such a silly game? Should I take them up on their offer? Presumably they can increase the £44 if they want, so I suppose I should. But the fact that they are making such an offer makes me think that this is some sort of trap.

MattMattMattUK

Chomeur said:

I pay £44/month for Virgin Media. Now they want to reduce that to £38/month but increase it annually by the RPI + 4%. What kind of business plays such a silly game? Should I take them up on their offer? Presumably they can increase the £44 if they want, so I suppose I should. But the fact that they are making such an offer makes me think that this is some sort of trap.

Nearly all suppliers on a subscription for telecoms and TV put this in, it is not a silly game, it is just the way the market works. 

It is not a trap as such, but you will currently be on a rolling contract, which means you can leave when ever you want, where as to get the reduction in price you need to sign up for a two year contract. 

Chomeur

OK, I've accepted the offer as I don't think I'll leave any time soon. It's for 18 months in fact. £38 plus about 10% is still less than £44. I can see that they like to have a hoop for people to jump through to get lower prices, as busier people won't do it, and so they can charge people differentially. But I think the formula of RPI + 4% is a bit silly.

toby3210

They are complete scammers increased my wifi from £50 per month to £60+ per month a few months back. I shopped around and mangaed to get a deal for closer to £30 elsewhere. I really resented that they created terms that allowed them to increase prices partway through contract.

grimsalve

Chomeur said:

OK, I've accepted the offer as I don't think I'll leave any time soon. It's for 18 months in fact. £38 plus about 10% is still less than £44. I can see that they like to have a hoop for people to jump through to get lower prices, as busier people won't do it, and so they can charge people differentially. But I think the formula of RPI + 4% is a bit silly.

The price increase will be based on the "full price", not what you currently pay. Your latest bill should tell you how much you should be paying and how much of a discount they are giving you.

They did the same trick to me last year. 

FreeBear

grimsalve said:

Chomeur said:

OK, I've accepted the offer as I don't think I'll leave any time soon. It's for 18 months in fact. £38 plus about 10% is still less than £44. I can see that they like to have a hoop for people to jump through to get lower prices, as busier people won't do it, and so they can charge people differentially. But I think the formula of RPI + 4% is a bit silly.

The price increase will be based on the "full price", not what you currently pay. Your latest bill should tell you how much you should be paying and how much of a discount they are giving you.

They did the same trick to me last year. 

From their Terms & Conditions, Additional Information

Price rises during your contract
Your monthly subscription charges for your core services and any add-ons (apart from a few specified exceptions) which you may have chosen will increase each year in April from April 2024 by the Retail Price Index (RPI) rate of inflation announced by the Office for National Statistics in the preceding February of that year plus an additional 3.9% which is applied at the same time. If the RPI rate is negative, we'll only apply the 3.9%. This annual price adjustment will be applied from April onwards. We'll publish the exact percentage increase each year on our website as soon as it becomes available.
The annual price adjustment will apply to the monthly subscription price you are paying at that time and also (if applicable) to the monthly subscription price payable after subsequent expiry of any applicable offer or discount.
For example (just for illustrative purposes), if you joined in August 2023 on an offer price where the monthly subscription charge is £40 a month for the first 18 months, then standard pricing from month 19 (currently £50 a month), using PI rates that are illustrative only:
Year 1: In April 2024 you would see your offer price increase to £43.56 a month (if RPI announced in the preceding February was 5%, plus the 3.9%) i.e. £40 × 1.089 = £43.56. Your standard monthly price payable from month 19 would increase also (£50 × 1.089= £54.45), although you would not pay this amount until February 2025, 18 months from the date that you entered your contract; and Year 2: In April 2025 (provided you have not re-contracted onto another price) you would be paying the standard monthly price and you would see your monthly subscription charge increase from £54.45 to £56.57 a month (if PI announced in the preceding February was minus 1.5%, meaning we only applied the 3.9% increase) i.e. £54.45 × 1.039 = £56.57.
As this annual price adjustment is provided for in your terms, it does not provide you with a right to cancel.

So if you are paying a discounted rate of say £23 on a package that would normally be £57, and Virgin try to impose an RPI+3.9% increase based on £57, they would be in breach of contract. Several remedies exist - First step would be a formal complaint to Virgin, and then escalate to the ombudsman if the response is unsatisfactory. Invoke the direct debt guarantee via your bank, and the money should be returned to you immediately. However, Virgin may hit you with a late payment charge and other penalty fees, so exhaust the complaints process first.

35har1old

Chomeur said:

OK, I've accepted the offer as I don't think I'll leave any time soon. It's for 18 months in fact. £38 plus about 10% is still less than £44. I can see that they like to have a hoop for people to jump through to get lower prices, as busier people won't do it, and so they can charge people differentially. But I think the formula of RPI + 4% is a bit silly.

Remember there will be another increase in April