Virgin Media Fined £28m for Contract Cancellation Issues

Virgin Media faces £28m fine from Ofcom for obstructing customers’ attempts to cancel contracts, revealing issues with call handling practices.

Virgin Media has been hit with a substantial £28 million fine for systematically obstructing customers from cancelling their contracts, as revealed by Ofcom. The communications regulator indicated that the company engaged in misleading tactics, including agents deliberately disconnecting calls and placing customers on hold excessively.

Ofcom’s investigation determined that millions of customer calls were mishandled over a three-year span, which hindered these customers from switching to more favorable broadband, landline, or pay-TV deals. As a result of admitting to these failings and agreeing to a settlement, Virgin Media saw its penalty reduced by 30%.

A Virgin Media spokesperson expressed regrets for the experiences of the small number of customers who encountered difficulties while trying to cancel or negotiate new deals. The investigation unveiled behaviors such as unnecessary call transfers, repeated attempts to pressure customers into remaining with Virgin Media, and keeping customers on hold without justification.

The regulator pointed out that Virgin Media’s commission structure served as a significant motivator for call center agents to engage in such inappropriate practices. This underhanded behavior, according to Ofcom, likely dissuaded numerous customers from pursuing their wishes to cancel contracts.

Natalie Black, Ofcom’s group director for infrastructure and connectivity, commented on the issue during an interview, citing Virgin Media’s actions as “pretty shocking” and indicative of inadequate customer service. She remarked that attempts to resolve the matter informally back in 2022 were not taken seriously.

Anthony, a long-time Virgin customer from Brighton, recounted his frustrating experience when trying to cancel his TV package last August. He noted that when he contacted the company, the call dropped after encountering a series of garbled automated messages. “I never got to speak to a person,” he shared, explaining that he ultimately gave up on his efforts.

He went on to say that he was blindsided by the renewal of his subscription, which now costs him £90 more monthly than the previous year. “I don’t understand why they operate this way. I can get Sky for about £80 a month,” he lamented.

Ofcom has received complaints from almost 1,900 customers struggling to cancel their contracts, with some even resorting to cancelling direct debits, which led to further complications and potential impacts on their credit scores.

Black announced that Ofcom has instituted new safeguards to avert similar incidents in the future, including the “One Touch Switch” process introduced in 2024, designed to simplify the process of changing broadband or landline suppliers.

The investigation also revealed that Virgin Media’s two-tier system for customer retention agents hindered the cancellation process, forcing many to repeat requests to multiple different agents.

A spokesperson for Virgin Media stated that the company has significantly revamped its customer service operations and addressed previous shortcomings through many improvements. They emphasized that recent data indicates Virgin Media is now the least complained-about broadband provider, with 89% fewer complaints related to difficulties in cancelling contracts than in 2023.

As for the fine, Virgin Media is required to pay the £28 million within two months, with the funds directed to the Treasury. Ofcom noted that this fine is the largest it has issued under its consumer protection rules and stands as its third-largest penalty overall, following prior substantial fines issued to Royal Mail and BT.