Virgin Media fined £28m for hindering customers from cancelling contracts
UK telecoms watchdog Ofcom has imposed a £28m fine on Virgin Media for systematically preventing customers from cancelling their contracts over nearly three years.
Ofcom investigation
Ofcom found that Virgin Media likely mishandled millions of phone calls between January 2022 and September 2024. Call agents deliberately dropped calls, made unnecessary transfers, and put customers on hold with no reason to delay or prevent cancellations and switching to competitors.
The regulator received nearly 2,000 complaints from Virgin Media broadband, landline, and pay TV customers who struggled to cancel their contracts. The £28m fine is the largest ever imposed by Ofcom under its consumer protection rules. It was reduced by 30% after Virgin Media admitted its failings and agreed to settle the case.
Commission scheme
The investigation uncovered a commission scheme that effectively encouraged retention team agents to mishandle calls, financially rewarding them for preventing churn. Natalie Black, Ofcom director, said Virgin Media initially did not fully cooperate, leading to the record fine.
Company response
A Virgin Media spokesperson apologised and stated that the company has completely redesigned its customer services in recent years, addressing historical shortfalls and resolving all formal complaints from the period. Ofcom’s latest data shows Virgin Media now receives the fewest complaints among broadband providers.
Previous penalty
This penalty follows a separate £23.8m fine issued in December, after Ofcom found that Virgin Media put thousands of vulnerable people at risk of harm during the switch from analogue to digital landlines.
