Changed Direct Debit and Virgin Charged Late Fee

[Sianstokes123]

Having read quite a few conversations on this it appears that Virgin have a very big systematic issue on their hands whereby the customer is being penalised (without probably even knowing so) as a result.

As many other customers appear to have done (and faced the subsequent issues) I changed my direct debit details due to moving banks on 4 April 2023. I received an email confirming all had been set up for the April 2023 direct debit however it never got taken. Virgin then sent me a bill for May 2023 with a late payment fee of £7.50 and last months charge saying it never got paid. I called... and called... and called... and eventually spoke to four different people who said that when someone updates their direct debit details, Virgin update the system immediately but dont attempt payment until the next billing cycle if the bill has already been generated. This is absolute nonsense as all other suppliers I changed my details with updated their system same day and took the payment no problem.

I disputed this and said well if thats the case thats Virgin's problem due to having all the correct DD details but choosing not to take the payment and I shouldn't be charged the late payment fee as a result of their inadequacy. I also wanted confirmation the "late payment" given that it was their error wouldnt be reported to the credit agencies which absolutely destroys your credit report. I was advised in writing and via telephone that it would not be reported as it was their error. I got the charge credited (they also said they would remove the reference to it on the bill completely but haven't) and I also got £25 credited by way of goodwill (they initially wanted to offer £5 but I argued it out). I was told my bill would update in 48 hours and all the credits would be applied and my new revised amount would be taken this month.

Problem solved, you would have thought. 

I have checked today and my bill hasnt updated, the late payment hasnt been removed and I am still due to pay the original charges and late payment fees this month. As I couldnt trust that they would update my bill as they said, I thought I would check my credit score to ensure they havent reported their error as they said they wouldnt. Low and behold, the late payment has been reported and my credit score has dropped from Excellent to Fair as a result.

You couldnt make this up.

I contacted them to express my disgust and request details as to how I rectify this (more time of mine rectifying their error and doing the job of their advisors) and was sent around the houses to someone who finally said well you can email creditfileamendments@virginmedia.co.uk to request they update the data with the credit agencies.

I have done this today and I have also put expierian on notice that this late payment notification is utter nonsense.

Virgin is the only company i have come across who causes such issues to their customers when the customer is updating their direct debit details so virgin can keep taking money on time. To then report their own failings in the guise of a late payment from a customer to credit reference agencies is outrageous and I can't understand how no one has taken action against them yet.

Hopefully the credit team email me back saying no problem, we will sort this, but if they don't I will be seeing this through to the end as it isn't good enough and can, if not picked up on, cause long lasting reputational financial damage.

I urge anyone who has experienced this to check their credit score immediately so that they can resolve any issues now rather than years down the line when you come to remortgage and wonder what on earth the late payment report is when everything, if Virgin did their job right, should have been taken on time.

I don't know whether to laugh at the incompetencies here or be outraged. Possibly both. 

[Paul_DN]

Hi Sianstokes123,

Thank you for reaching out to us in our community and welcome, sorry to hear your Direct Debit failed as you changed banks and had given us the new details, once a bill has been generated it sits as pending straight away, if the bank changes during this it won't go out f the new one, any changes must be made while there is a zero balance on the account and no pending Direct Debits, apologies if this was not advised.

Regards

Paul.

[Sianstokes123]

This happened to me this last month and I’ve had absolutely nothing but issues. They’ve also reported a late payment to the credit agencies who have now significantly dropped my credit score as a result of their error, despite having an email from the complaints team advising that they acknowledge it’s their systems error and the late payment would not be reported to external agencies, regardless of what they put in writing they still did this and I’m now battling to get it remedied so please check your credit report to make sure the same hasn’t happened to you!

The reason I was told this happens is because their system, whilst updating the DD details, automatically defers all payments to the next month which generates a missed payment (because they chose not to take it) which in turn generates a late payment fee. The amount of customers this must affect but they don’t notice and Virgin profit from the £7.50 is a joke.

Every other company managed to take the payment on time and in full when the details were updated, but Virgin have caused all sorts of problems because of their failings. It’s even worse that credit agencies take what they say as the truth and you have to fight to get it amended.

Add being 28 weeks pregnant into the mix and I’ve had enough.

[Sianstokes123]

Have you got anywhere with this? 

I am having the same issue whereby they have admitted in writing that the error is their fault and they WILL NOT contact credit reference agencies but regardless, they have and my credit score has gone done so much as a result! I have never paid anything late, 141 on time payments on my credit file and this 1 “late” payment is causing great issues. Ive emailed the credit team and haven’t had a response (yet).

Baffles me how they can ruin your credit score in seconds (and won’t hesitate to do so) but they take up to a month to reply to an email! Even worse how they can report whatever they want to a credit agency and it’s taken as the truth until you can prove it’s wrong. What happened to innocent until proven guilty? Disgraceful.

[Tudor]

I might be wrong, but my impression of the banks latest code of conduct when moving accounts from one to another was that all Direct Debits were transferred to the new bank by the original bank and the originator was informed on the change. You, as the account holder did not have to do anything.

[japitts]

Your impression seems to marry with the Direct Debit guarantee, @Tudor 

https://www.directdebit.co.uk/direct-debit-explained/managing-direct-debit/ - Paragraph 4.

How VM's billing system works, may be another issue. Also potentially depending on the donor & recipient bank both being part of the transfer scheme.

[Chris_W1]

HI Sianstokes123, thanks for the message and sorry to hear that a late payment has been applied. 

The late payment is applied when a bill is left unpaid and the next bill is produced. 

The direct debit is an agreement with yourself and the bank and if the direct debit is not taken you would be able to make payment via card. 

If you want the credit file looked at then please email the team at creditfileamendments@virginmedia.co.uk 

Chris

[Sianstokes123]

I am fully aware as to how direct debits work. I am also fully aware as to how to pay my bills and have done successfully since god knows how many years ago when I started obtaining bills in my own name.

The problem here is Virgins system, which they have advised in writing is the problem! If a bill is generated (which it was for all of my creditors, not just Virgin) and I have new direct debit details to report, Virgin stating that they just don’t take payment until the next billing cycle is unacceptable. All other creditors were aware of my DD change and didn’t have a problem taking payment from the new account, Virgin however seem to have this obscene rule that if a bill has been generated they won’t take the DD from the new account until the next cycle and they won’t take the payment from the old account as they’ve removed those details from the system given that they were provided with new DD details (which they have confirmed they updated same day).

Virgin system being programmed to do this is no fault of the consumer. They had all the details they needed and the CHOSE not to take payment. Virgins complaint team have acknowledged this is a system issue and have put in writing that it is their error and won’t affect my credit score as they won’t report it, yet low and behold immediately after not receiving payment (because they didn’t draw down on the DD) they report it!! 

I shouldn’t be surprised how they are so quick to report but so slow to rectify. There’s a theme that occurs with almost every complaint on this forum.

If every other creditor (council tax, electric etc..) had no issue taking payment, Virgin shouldn’t have either and I’m sorry but I’m not standing for being fobbed off like this when I have NEVER paid late in my life.

I fully intend to see this all the way through to a complaint with the ICO, Ombudsman and report it to the media if Virgin’s Credit Team (still no response to that email btw) don’t rectify this as I evidently from this forum am not the only person to update direct debit details with Virgin and for them to royally mess the next payment up.

Updating direct debit details in the UK is a common practice and isn’t rocket science. If all of my creditors had a problem I could understand but Virgin didn’t even attempt to draw down on the DD!!!! That’s the whole point of this.

To add, absolutely nowhere (in your advice to others on this forum aswell or online) does it explicitly state the account has to be at zero before changing your DD details. In addition, absolutely no one contacted me from Virgin when they knew they would have an issue taking any payment to tell me to make a manual payment, I found out about this when they decided to automatically add the bill to the next one and charge a late payment fee. Maybe next time I should consult my crystal ball…

[Chris_W1]

Hi Sianstokes123, thanks for the reply. I will send you a PM so that this can be looked into further so that we can ascertain what has actually happened. 

Kind regards Chris. 

[Sianstokes123]

Chris I have responded to your personal message but everything’s gone silent again your side.