Virgin Media DirectDebit v Continuous Payment

[Stillborn Crisps]

I've just had a very curious thing happen when I phoned Virgin Media which I thought I'd share as it may give some insight for someone arguing about Direct Debit payments.

 

I've had my broadband through Virgin Media (originally NTL) for 1.5 years on what I thought was a Direct Debit connected to my Credit Card. The payment is a flat fee, exactly the same, every month.

 

The card expired last month and I got a new one, but this month I saw the Virgin Media payment had bounced, so I phoned them to give them the new card expirey date/security number.

 

After I'd paid off the balance with my credit card she said I needed to set up a Direct Debit, and she needed my bank details/sort code. I explained I'd been paying by DD since the account was opened - but she said no, I'd been paying by 'continuous payment'. Ie I must've paid my first monthly installment by credit card and they had set it to remake that payment continuously every month.

 

So I said to re-set it up to keep on with this method, and she did without question! I was amazed as I realized it obviously isn't a DD which they bully practically every other customer into doing.

 

So there IS an alternative to DD which they don't charge £4 for.

 

I don't know if this would work on an account where the bill was different each month. Anyone know more about Continuous Payments? as it's not a DD I assume they can't just dip in and take what they want with it????

[patdavies]

So there IS an alternative to DD which they don't charge £4 for.

 

I don't know if this would work on an account where the bill was different each month. Anyone know more about Continuous Payments? as it's not a DD I assume they can't just dip in and take what they want with it????

 

It is not the same as DD - it is far worse !!!

 

Yes it can handle varying payments.

 

The main difference is that with a DD. you can instruct your bank to stop paying it and stop, they must.

 

With continuous credit, you cannot stop the payment, only Virginmedia can.

 

Yes they can dip in whenever they like and take whatever; there is no requirement to give you notice of the varying amount; there is no DD guarantee.

[buzby]

You have less rights using a continuous mandate than you do with Direct Debit. Even if you cancel your credit card, VM can still continue to take the payment without your agreement, and you will be told only VM can repay it. As a payment method, this is about the worse one available to consumers.

[karen654321]

But it is no different from paying on a card using there automated service surely. It cant cost them no more. Really glad i found this thread as i have virgin media ringing me again tomorrow and its a bit more of an argument i can now put across. will keep you posted

[buzby]

But it is no different from paying on a card using there automated service surely. It cant cost them no more.

 

It does. Credit (and to a lesser extent) debit card merchant fees apply that can take up to 5% off the amount due, so if your bill was £100, they'd only receive £95.

 

The question is this. If the firm accepts credit card payments, then shouldn't THEY be liable for the costs of processing as part of their bottom line? WHY should the customer be forced to pay more?

[2Grumpy]

It is even worse than that

 

If you pay virgin Media by credit card they will keep the details and use it for your next bill even if you haven't asked for a continuous credit agreement to be created

 

Apparently you have to ask for your credit card details to be removed or unlinked or something (forgot the term they suggested) or they will keep it.

 

I have even heard of the credit card company paying out on an expired credit card on a continuous credit agreement

 

In my case VM had my credit card details, were taking the money each month & then tried to stuff me with charges when the card had expired & they tried to take more money. They decided not to when I told them that they had the expiry date so they should have contacted me. They were also charging me the non DD fee. When I asked why, how much CC processing cost & how much DD processing cost (they told me DD was free to them!) they even paid back all of my non-DD fee as well

 

I now have a DD set up with them so no DD fee but I still pay by CC each month - they just don't try to collect the money. I'm happy with that cos they get most bills wrong.

[buzby]

I'm happy with that cos they get most bills wrong.

 

They send me incorrect bills too, but I wouldn't be as laid back as you. You don't trust them, yet you've given them a DD as WELL as a CC mandate...?

[karen654321]

I think the problem is putting the argument across to them though. They claim it does cost them more and not prepared to prove it does although there is a chance it does.

 

The other thing is with the late payment charges. What do you answer to them when they say to you well dont pay late and you wont get them??

 

karen

[buzby]

For late payment, there is a good argument that you did not specifically agree to the charge, it was simply imposed on you as a customer. Similarly, this is a flat fee, and does not relate to any costs incurred by the late payment. Under the rules, any charges must be 'reasonable', it could them be argued charging someone £10 for a 1 week delayed payment of £50 is punitive, but for £100 paid 3 months late it might not be.

[CAULODREN]

You have less rights using a continuous mandate than you do with Direct Debit. Even if you cancel your credit card, VM can still continue to take the payment without your agreement, and you will be told only VM can repay it. As a payment method, this is about the worse one available to consumers.

 

If you set up a continuous mandate with your credit card and they still bill you when you are no longer a customer, you can perform a chargeback.

[buzby]

This would depend on the circumstances. You could not challenge based on the fact you had 'closed' the cc previously. It would then be up to the merchant to agree to refund the card, and failing this, YOU would have to pay the CC company until the matter was resolved either way.

 

Another reason why plastic is worse than cash or cheque!