Broadband News

Virgin adds cancellation fee for new ADSL customers

As of 7th June 2005, new customers ordering a Virgin ADSL service will become liable for a disconnection fee of £50 if they cancel their account within 12 months of its activation. If you are moving house, but retain the Virgin service at your new residence then Virgin will exempt you from the charge. This new clause to the company's Terms and Conditions is clause H.5, which is reproduced below:

"Cancellation charge:: For customers ordering the Service on or after June 7th 2005, reserves the right to charge you a cancellation fee of £50.00 (fifty pounds) if you cancel your Broadband account within 12 months of the date your Broadband Service was activated. Customers who are moving home will be exempt from this cancellation charge, provided that the Service is retained at the customer's new address. "

Section H.5 from Terms and Conditions

Up until 7th June Virgin offered customers signing up to the service free activation and a one month contract. This made the service very popular with people who moved a lot, and any one looking for a cheap to set-up no commitment service. The £50 cancellation fee is really Virgin now attempting to recoup the activation fee that they would have paid BT Wholesale when the line was activated originally.

Virgin are not alone in recouping free activation costs, Pipex has ran a similar scheme for some time. PlusNet have a five year deferred payment scheme for activation, whereby as every year goes by you would repay less of the activation fee if you leave the provider, or you can simply opt to pay the activation at the beginning of your contract.


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