09 Mar 2015

A question about : Problems with Virgin Media default notice

Morning everyone

Here's hoping someone can give me some advice before I scream !!

Back in 2008 we had an agreement with cable & wireless for the provison of internet and phone services, they were then sold to Virgin media. In 2010 I advised Virgin media both by letter and phone that I was going to terminate the service with them and move elsewhere for a better deal. They stated a fee for termination would be due of Ј180.

I refused to pay this fee as I had never agreed to their terms and conditions and many discussions took place where I advised them to take me to the small claims court and if the court considered the fee for Ј180 was correct I would pay it.

I now have a default notice on my credit file for the Ј180 from Virgin Media.

Much correspondance has been exchanged and they have refused to remove it until I pay the Ј180 title=Mad

I have reported this to the Information Commisioner however they have a huge wait of up to 6 months title=EEK! and the CRA won't enter a record of dispute ?? stating I am disputing the default as they say that Virgin, when contacted, have assured them the procedure and issueing of the default has been done correctly - this is a bare faced lie. I issued a SAR and they don't even have a copy of the credit agreement or the default notice !!!

If anyone has any advice or help as how I can resolve this matter asap I would be hugely grateful. My credit history is completely clear other than this default yet I have now been advised I cannot renew my mortgage deal or renew my business overdraft.

I really do feel Virgin are trying to blackmail me into paying an amount which I do not believe I owe.

To say I'm angry would be an understatementtitle=Mad

Best answers:

  • An internet/phone contract is very probably a service agreement and therefore not covered by the consumer credit act - and so won't have a CCA. If a debt is not covered by the CCA they don't legally have to send out a default notice.
    You could enter a notice of correction on your credit file to state that the debt is disputed.
    Do you have a copy of your original terms with C&W? what does that state about a termination fee? Do you have the original letter from Virgin after they took over C&W? does that include reference to new terms? a new agreement or anything?
  • Thanks for your prompt reply - I was of the understanding that only agreements made under CCA could be subject to a default notice ??? And that the provision of a service such as utilities is a contractual matter and therefor any dispute over non payment can only be settled by the small claims procedure or is this incorrect ?
    We have no copy of any terms and conditions from either C&W or Virgin media............
  • No, other types of agreements can also have a default added to your credit file e.g. overdrafts and service contracts for things like mobile phones.
  • Sections 33 / 35 and others of the ICO guidance on filing defaults explain that not all lenders are required to send default notices, and that it may not be necessary to send them in all occasions.
  • Reading that then it means that even though I give notice to a company to cancel (which I did), if they choose to ignore my cancellation notice,(which they did) because to do otherwise is detrimental to them, then they can charge as much as they like in cancellation fees and I have no right to dispute these charges ? Oh and if I do then my credit record will be destroyed by the entering of a default ?!?!
    Smells more like something from a dodgy Soviet state rather than a supposedly free and democratic society !!!!!!!!!
  • Why do they think you owe them such a high cancellation fee?
    If you were over the original 12 months and hadn't ordered any new services then all they could claim would be a month. Don't forget that you also pay for a chunk of their services in advance.
    I would keep arguing with them. I cancelled our Virgin media package in 2010 and they collected their equipment within a week. I cancelled the dd just in case and they then spent the next 18 months asking for 4 months subscription after I had cancelled. I tried to tell them over and over again that I could not have accessed their services as they'd removed their equipment but this fact seemed to be beyond the grasp of their collections team.
    In the end I just kept threatening to report them and one of them finally got the message and sorted it out. It was a bit of a battle though.
  • Actually this seems to be a Virgin tactic. They like to roll over their gym contracts too, (against the specific advice of the OFT) and I know a lot of people through work who have coughed up the remaining years fees to Virgin, simply because they threaten them with debt collectors.
    This is obviously a very successful scare tactic!!
    I cancelled mine and they tried that scam on me but I just threatened to report them to the local press and they soon caved in.