EE and Virgin Media hit with £13m fines for overcharging customers
TWO of Britain’s biggest mobile and broadband operators, EE and Virgin Media, have been hit by fines totalling £13.3 million for the “unacceptable” overcharging of thousands of customers who quit contracts early.
Communications regulator Ofcom said the penalties sent a clear message to companies that “broke our rules” and left customers out of pocket. However, Virgin said it would appeal against the “unreasonable” decision.
Around 400,000 EE customers who ended mobile contracts early were overbilled £4.3 million over a six-year period. Almost 82,000 Virgin residen- tial customers overpaid nearly £2.8 million over the course of a year, an average of £34 each. Virgin Media charged early exit fees that were higher than customers had agreed to when they signed their contracts, Ofcom said.
Gaucho Rasmussen, Ofcom’s director of investigations and enforcement, said: “EE and Virgin Media broke our rules by overcharging people who ended their contracts early. Those people were left out of pocket, and the charges amounted to millions of pounds.
“That is unacceptable. These fines send a clear message to all phone and broadband firms that they must play by the rules, in the interests of their customers.”
The watchdog said both companies have since agreed to change their terms and reduce exit charges.
However, Virgin Media responded angrily and said it “strongly disagrees” with Ofcom’s ruling and will appeal to the Competition Appeal Tribunal.
Tom Mockridge, chief executive of Virgin Media, said: “This decision and fine is not justified, proportionate or
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