Virgin Media has been fined £28 million by Ofcom after an investigation revealed that the company systematically mishandled millions of customer calls to prevent them from cancelling their contracts. The regulator found that between 1 January 2022 and 11 September 2024, call agents employed tactics such as pressuring customers to stay, putting them on hold, transferring calls unnecessarily, and even deliberately dropping calls. In some cases, cancellations were simply not processed.
Investigation Details
Ofcom launched the investigation after receiving numerous complaints and after Virgin Media failed to address the issue voluntarily. The probe uncovered 'systemic and repeated' failings in the company's contract termination procedures. Specifically, Virgin Media operated a two-tier retention team, where only second-tier agents could process cancellations. This meant over a million callers had to repeat their requests multiple times to have any chance of cancelling.
Customers reported making multiple attempts through various channels, and some resorted to cancelling their direct debits, which led to credit score issues due to missed payments. Ofcom noted that the company's commission scheme financially rewarded agents for retaining customers, encouraging the use of these obstructive behaviours.
Ofcom's Findings and Penalty
Ofcom concluded that Virgin Media's actions caused customers on millions of calls 'unreasonable effort, hassle or undue difficulty' when trying to cancel. The £28 million fine, which will go to HM Treasury, reflects the significant harm to customers, Virgin Media's repeated failure to act, and the financial gain the company likely made.
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.' She added: 'Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price.'
Remedial Actions
Virgin Media has since made changes to its commission scheme, training, and quality assurance processes. Ofcom has also required the company to check that every affected customer who complained has received the appropriate compensation or remedies within six months. The regulator also highlighted the introduction of the One Touch Switch Process as a further safeguard to prevent similar issues in the future.
