The UK’s communications regulator has fined Virgin Media £28 million after finding the company repeatedly made it difficult for customers to cancel their broadband, landline and pay-TV contracts.
Ofcom said the Virgin Media fine followed an investigation that uncovered practices including agents deliberately hanging up on customers, placing callers on hold unnecessarily and repeatedly trying to persuade them not to leave.
The regulator said millions of customer calls were likely mishandled between January 2022 and September 2024, preventing or delaying customers from switching to alternative providers.
Ofcom finds widespread failings
The regulator said Virgin Media’s commission scheme effectively encouraged call centre staff to delay or prevent customers from cancelling their contracts.
Its investigation identified excessive and unnecessary call transfers, repeated attempts to pressure customers into staying, deliberate disconnections and customers being left on hold “for no reason”.
Ofcom also found that only a second tier of retention agents could process cancellations, meaning more than one million customers had to repeat their request to at least one additional adviser.
Natalie Black, Ofcom’s Group Director for Networks and Communications, described the company’s conduct as “pretty shocking”, adding that Virgin Media had made it harder for customers to cancel their contracts and had not fully cooperated with the regulator’s investigation.
Customers describe frustrating experience
Anthony, a Virgin Media customer from Brighton, told the BBC he had tried to cancel his television package before it renewed last August after becoming frustrated by rising prices.
He said his call disconnected after a series of automated messages and that he never managed to speak to a customer service representative.
“I never got to speak to a person,” he said. “Basically I gave up.”
Anthony said his contract renewed automatically and he is now paying £90 more each month than he did previously.
Ofcom received 1,881 complaints from customers reporting difficulties cancelling their contracts. Some customers resorted to cancelling direct debits, which the regulator said could lead to further problems, including damage to credit scores through missed payments.
Virgin Media apologises
Virgin Media admitted its failings and agreed to settle the case, resulting in a 30% reduction in the financial penalty.
The company apologised to “the small proportion” of customers who experienced problems when trying to negotiate a new deal or cancel their services.
It said it had resolved all formal complaints from the period under investigation and provided compensation where appropriate.
The regulator has ordered Virgin Media to review every affected customer who complained and ensure they have received any compensation or other remedies they were entitled to within six months.
Customer service changes introduced
Virgin Media said it has since overhauled its customer service operation, including changes to staff training, quality assurance and its commission structure.
The company said Ofcom’s latest figures show it is now the UK’s least-complained-about broadband provider and that complaints specifically relating to difficulties cancelling services fell by 89% last year compared with 2023.
The £28 million penalty is the largest fine Ofcom has issued under its consumer protection rules and its third largest financial penalty overall.
Source: BBC
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