Virgin Media has been fined £28 million by Ofcom, the telecoms regulator, after an investigation found that millions of customers were subjected to unreasonable effort and pressure when trying to cancel their contracts. This is the largest consumer protection fine ever imposed by Ofcom.
Systemic Failures in Cancellation Process
Ofcom's investigation uncovered systemic and repeated failings in Virgin Media's contract termination procedures between January 1, 2022, and September 11, 2024. The company split its retention team into two tiers, with only second-tier agents authorized to process cancellations. This led to over a million callers having to repeat their requests to at least one further agent to have any chance of cancellation.
Customers reported making multiple attempts to cancel through repeated calls and other channels, with some resorting to cancelling direct debits, which caused missed payments and impacted credit scores.
Deliberate Tactics to Deter Cancellations
The regulator found that Virgin Media retention agents engaged in widespread and often deliberate mishandling of calls. Tactics included: pressuring customers to stay, unnecessary call transfers, excessive holds, dropping calls, and failing to process cancellations. These behaviors were encouraged through a commission scheme that financially rewarded agents for retaining customers.
Training and guidance failed to prevent these practices, and inadequate quality assurance meant they were often overlooked. Virgin Media also lacked proper oversight of its third-party call centers.
Fine and Regulatory Action
Ofcom fined Virgin Media £28 million, which will be paid to HM Treasury. The fine reflects the significant harm to customers, Virgin Media's repeated failure to act, and the financial gain from deterring cancellations.
Natalie Black, Ofcom's Group Director for Infrastructure and Connectivity, stated: “The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation. As a result, we are levelling our largest ever fine under our consumer protection rules for direct harm to consumers.”
A Virgin Media spokesperson said the company has made changes to its commission scheme, training, and quality assurance. Ofcom has required Virgin Media to check that every affected customer who complained has received appropriate compensation within six months.
