Ofcom moves on ‘unfair’ Virgin fees

Virgin Media customers who have been hit with “early exit penalties” could be offered compensation as the telecoms watchdog Ofcom published a provisional decision to say the charges are unlawful.

Home-movers were being penalised with excessive “early disconnection charges” when they relocated to an area not supported by Virgin Media before their contract had ended.

Virgin Media broadband is only available in around half of the UK.

The decision follows a formal investigation launched last June into the fairness of the company’s terms and conditions, specifically its charges for ending a contract early, after complaints from customers.

The Ofcom decision, published yesterday, said exit fees of up to £240 charged between Sept 1 2016 and Sept 11 2017 are in breach of Ofcom rules because they are too high and will have deterred customers from switching providers. Consumer rights experts previously damned the telecommunications company, calling the charge “illogical and unfair”.

Ofcom said Virgin Media “has broken our rules”, while Virgin Media said: “We will review the findings.”