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The Guardian - UK
The Guardian - UK
Business
Miles Brignall

Virgin’s £241 penalty because we have to move home

A Virgin Media engineer connects a house to the service.
A disconnect with Virgin Media over penalties, contracts and getting the service to ‘go live’. Photograph: Alamy Stock Photo

• As a long-time Virgin Media customer I signed a new 12-month contract in November 2016 following numerous cold calls urging me to improve my broadband at no extra cost. Unfortunately, in March this year unforeseen circumstances dictated that I need to move house. When I gave 30 days’ notice of this, I was told that since I am only a few months into the contract I will be charged a £241 early disconnection fee because Virgin Media doesn’t provide services in the area where my new house is located.

It feels like I’m effectively being penalised for Virgin’s inability to provide me with any services. Even if you accept some kind of penalty, £241 seems draconian. MF, West Norwood, London

• At the end of February I contacted Virgin in order to install its TV broadband and telephone, replacing BT and Sky. I was given a “go-live” date a month later. But the installer said he could not complete, or even start, the work because it needed a “pull through”. At a second appointment I was connected to a neighbour’s system as a temporary measure. However, I am still not able to receive phone calls or access all the TV channels.

Since the end of April Virgin has cancelled three more appointments. I have been given a succession of excuses – it even claimed it can take up to three months to obtain a permit to dig up the road. The highways department told me it could be given within 24 hours. JW, Stockport

Virgin Media always does well in the annual Ofcom complaints data, scoring better than the likes of TalkTalk or BT. However, our postbag tells a different story. We get at least as many complaints about the cable provider as the others, perhaps more, proportionally.

The first letter is a familiar matter – one it is high time regulator Ofcom got a grip of it. Virgin runs its own cable network that has nothing to do with the Openeach lines other providers use. It means that if you move, you can only take your contracted service with you if the new house is also connected, and at least half of homes are not. Therefore customers moving to a non-Virgin area have to pay off their contract at around two-thirds of the full price – charges are listed on its website. As other providers use the Openreach network, in most cases you can take your contract with you.

Back in 2010, following an investigation, Ofcom claimed it was working with the industry to reduce these charges, but they are still too high. Ofcom appears to agree. “We’d expect providers to treat home movers in these circumstances fairly and sympathetically, and are in active discussions with Virgin Media about the fairness of its policy,” says a spokesman.

In our view too few customers are aware that when they sign a Virgin contract they are liable for these charges whether they use the service or not.

A spokesman for the company says the charges in MF’s case are legitimate. “We urge all of our customers to consider the length of contracts before entering into them. Details of early disconnection fees are placed at the top of our T&Cs in clear English to help ensure customers have sight of them.”

The second letter is also rather familiar – a tale of missed or cancelled appointments. We may not have helped the first reader but we did get things moving for the second. You should be connected this weekend.

We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number

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