Virgin Media has been fined £28m by the UK’s communications regulator after an investigation found the broadband and telecoms provider repeatedly made it difficult for customers to cancel their contracts or switch to rival services.
The penalty, imposed by Ofcom, is the largest the regulator has ever issued under its consumer protection rules and follows findings that millions of customer calls were likely mishandled between January 2022 and September 2024. The regulator said the company’s practices delayed or discouraged customers from leaving, while Virgin Media also failed to fully cooperate with the investigation.
Ofcom said its investigation found call centre staff routinely employed tactics that prevented or delayed customers from cancelling their contracts. “The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation.”
According to the regulator, agents deliberately hung up on customers, transferred calls unnecessarily, repeatedly placed callers on hold without reason and pressured customers to remain with the company. Ofcom also found Virgin Media’s commission structure effectively rewarded staff for discouraging cancellations.
“Virgin Media’s commission scheme effectively encouraged and financially rewarded call centre agents for behaving in this way.”
The regulator said its rules require telecoms providers to ensure cancellation procedures do not discourage customers from ending their contracts or switching providers. It concluded that Virgin Media’s conduct likely acted as a disincentive in millions of customer interactions.
Natalie Black, Ofcom’s Group Director for Networks and Communications, described the company’s conduct as unacceptable and warned that providers who undermine consumer rights would face severe penalties. “Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price.”
Ofcom said it received 1,881 complaints from customers who reported difficulties leaving Virgin Media. Some customers resorted to cancelling their direct debits after failing to terminate their contracts, leading to missed payments that affected their credit records.
The regulator also found Virgin Media operated a two-tier customer retention system in which only second-tier agents had the authority to process cancellations. As a result, more than one million customers had to repeat their cancellation requests to additional staff before their contracts could be terminated.
Virgin Media admitted its failings and agreed to settle the investigation, resulting in a 30% reduction in the financial penalty. The company apologised to customers who experienced problems and said it had overhauled its customer service operations. “We have completely redesigned our customer service in recent years and addressed the historic shortfalls through a number of improvements.”
The company said significant investment had transformed its customer service, adding that Ofcom’s latest figures show it is now the UK’s least-complained-about broadband provider. It also said complaints specifically relating to customers experiencing difficulties leaving the service fell by 89% last year compared with 2023.
Ofcom acknowledged Virgin Media had introduced improvements to its commission structure, staff training, quality assurance and monitoring processes. The regulator said it would closely monitor the company over the next six months to ensure the changes are effective.
Virgin Media must pay the £28m fine within two months, with the money going to the UK Treasury. The company was also fined £23.8m by Ofcom in 2025 over failures that left thousands of customers without access to life-saving telecare alarms during the UK’s digital switchover.
Erizia Rubyjeana
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