The UK's telecoms regulator, Ofcom, has handed Virgin Media a significant £28 million fine for deliberately thwarting customer contract cancellations between January 2022 and September 2024. This staggering penalty represents the largest-ever fine imposed under consumer protection rules by Ofcom, highlighting the severity of Virgin Media's actions.
Ofcom's investigation into nearly 2,000 complaints revealed that the company engaged in practices such as dropping calls, transferring customers unnecessarily, and placing them on hold without justification. These tactics were designed to prevent customers from switching to rival providers, potentially costing households hundreds of pounds in savings over time. A commission scheme was also uncovered, which financially incentivised retention team agents to engage in these delaying activities.
Ofcom Director Natalie Black noted that Virgin Media initially failed to fully cooperate with the investigation, but has since made "important changes" to their operations, including improved staff training and enhanced quality assurance processes. The company must now ensure that all affected customers receive compensation or other remedies within six months. As a result of these changes, Ofcom's recent data indicates that Virgin Media currently boasts one of the lowest complaint rates among broadband providers.
A spokesperson for Virgin Media apologised for the issues, stating, "We're committed to giving all our customers great service and apologise to the small proportion who experienced an issue when contacting us to agree a new deal or cancel their service in the past." The company has also highlighted improvements made to customer services since the issues were identified. Notably, this latest fine follows a separate £23.8 million penalty issued last December for putting vulnerable individuals at risk during a switch to digital landlines.