Ofcom has imposed a record £28 million fine on Virgin Media for deliberately preventing customers from cancelling their contracts over nearly three years. The penalty, the largest ever under the regulator's consumer protection rules, follows an investigation that found the company mishandled millions of phone calls between January 2022 and September 2024.
Deliberate Call-Dropping and Transfers
Ofcom discovered that Virgin Media used tactics such as deliberate call-dropping, unnecessary transfers, and putting customers on hold for no reason. The watchdog received almost 2,000 complaints from broadband, landline, and pay TV customers who struggled to cancel their services.
The investigation revealed that call agents were likely instructed to delay or prevent cancellations to stop customers switching to competitors. Evidence showed a commission scheme that financially rewarded retention team agents for this behaviour.
Previous Breaches and Non-Cooperation
Virgin Media had been fined in 2018 for similar breaches and also failed to cooperate with Ofcom's information-gathering process. Natalie Black, Ofcom director, 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."
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."
Customer Impact and Compensation
The fine, reduced by 30% due to Virgin Media's admission and settlement, is Ofcom's biggest consumer protection penalty. Customers could save hundreds of pounds by switching providers, but many faced obstacles, with some cancelling direct debits and harming their credit scores.
Rocio Concha, director of policy at Which?, called the behaviour "shocking", especially during the cost-of-living crisis. She said: "It's shocking that Virgin Media was deliberately making it harder for customers to leave for a better deal. This was a deeply cynical tactic."
Company Response and Changes
Virgin Media apologised and said it had redesigned customer services, addressing shortfalls through improvements in commission schemes, training, and monitoring. A spokesperson said: "We're committed to giving all our customers great service and apologise to the small proportion who experienced an issue."
Ofcom has ordered Virgin Media to check that all affected customers who complained receive compensation or remedies within six months. The company noted that Ofcom's latest data shows Virgin Media now has the fewest complaints among broadband providers.
This fine follows a separate £23.8 million penalty in December 2023 for putting vulnerable customers at risk during the switch from analogue to digital landlines.
