Virgin Media has been fined £28 million by UK communications regulator Ofcom after an investigation found the company repeatedly made it difficult for customers to cancel their broadband, landline and pay-TV contracts.
According to Ofcom, millions of customer calls between January 1, 2022, and September 11, 2024, were likely mishandled in ways that delayed or prevented customers from switching to other providers.
The regulator said call centre agents employed tactics such as transferring customers unnecessarily, deliberately disconnecting calls, repeatedly attempting to persuade customers to stay, and placing callers on hold without justification.
Ofcom also found that Virgin Media’s commission structure effectively encouraged and financially rewarded agents for discouraging cancellations.
The regulator said such practices breached consumer protection rules, which require telecom providers to ensure cancellation procedures do not discourage customers from ending their contracts.
Although the original financial penalty was higher, the fine was reduced by 30 per cent after Virgin Media admitted its failings and agreed to settle the case.
Describing the company’s conduct as “pretty shocking,” Ofcom’s Group Director for Infrastructure and Connectivity, Natalie Black, said the regulator had initially attempted to resolve the matter informally in 2022, but there was insufficient willingness from the company to address the issues.
“The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation,” Black said.
She added that the penalty sends a strong message that companies acting against the interests of consumers will face significant consequences.
During the investigation, Ofcom received 1,881 complaints from customers who reported difficulties cancelling their services. Some customers resorted to cancelling their direct debits, leading to missed payments and, in some cases, damage to their credit scores.
The regulator also found that Virgin Media operated a two-tier customer retention system in which only second-tier agents could process cancellations. As a result, more than one million customers had to repeat their cancellation requests to multiple agents before their contracts could be terminated.
Since the investigation began, Virgin Media has introduced several changes, including improvements to its commission structure, staff training, quality assurance and customer service processes.
A company spokesperson apologised to customers who experienced problems when trying to cancel or renegotiate their contracts, saying the business had “completely redesigned” its customer service operations in recent years.
The spokesperson added that Ofcom’s latest data now ranks Virgin Media as the UK’s least-complained-about broadband provider, with complaints relating to cancellation difficulties falling by 89 per cent compared with 2023.
Ofcom said it will closely monitor Virgin Media over the next six months to ensure the improvements are sustained.
The £28 million penalty is the largest fine Ofcom has imposed under its consumer protection rules and the third-largest financial penalty in the regulator’s history. Virgin Media must pay the fine within two months, with the proceeds going to the UK Treasury.
