Virgin Media has been fined £28 million by Ofcom for deliberately obstructing customers from cancelling their contracts. The regulator found that millions of phone calls were mishandled between January 1, 2022, and September 11, 2024, with tactics including deliberate call-dropping and placing customers on hold for no reason.
Ofcom's Findings
Ofcom described the fine as the largest it has ever imposed under consumer protection regulations and its third largest overall. The investigation revealed a two-tier system of retention staff, where only second-tier agents could process cancellations, forcing over a million callers to repeat their requests to at least one additional agent.
Tactics uncovered included excessive call transfers, deliberately disconnecting calls, repeated pressure to stay, and unnecessarily keeping customers on hold. Ofcom stated that Virgin's commission structure effectively encouraged and financially incentivised staff for this behaviour.
Customer Complaints and Response
Ofcom received complaints from 1,881 customers who experienced problems cancelling. Natalie Black, Ofcom's group director for infrastructure and connectivity, said: "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."
The fine was reduced by 30% after Virgin Media acknowledged its shortcomings and agreed to settle. Virgin Media apologised to "the small proportion who experienced an issue when contacting us to agree a new deal or cancel their service in the past."
Preventive Measures
Black noted that Ofcom introduced further safeguards, including the "One Touch Switch" process launched in 2024, designed to make switching broadband or landline providers hassle-free. A Virgin Media spokesperson said the company had "completely redesigned" its customer service and addressed "historic shortfalls" through significant investment. They added that Ofcom's latest data shows Virgin Media is now the least-complained-about broadband provider, with complaints about leaving down 89% last year compared to 2023.
