Virgin Media fined £28m for preventing customers from cancelling contracts

Virgin Media was fined £28 million by Ofcom for mishandling millions of customer calls to prevent contract cancellations, the regulator announced on Wednesday.

The fine, reduced by 30% because Virgin Media admitted the failing and agreed to settle, is the largest Ofcom has issued under its consumer protection rules ^[1][2]. The investigation found that between January 2022 and September 2024, call agents likely mishandled calls “in order to delay or prevent customers from cancelling and switching to a competitor” ^[1][2]. Tactics included dropping calls, unnecessary transfers, and placing customers on hold for no reason ^[1][2]. Ofcom uncovered a commission scheme that financially rewarded retention agents for this behavior ^[1][2]. Natalie Black, a director at Ofcom, said the company initially “did not fully cooperate with our investigation” ^[1][2]. “Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price,” Black said ^[1][2]. Virgin Media has since made changes to its commission scheme, training, and quality assurance processes ^[1][2]. The regulator ordered the company to verify within six months that every affected customer who complained has received appropriate compensation or remedies ^[1][2]. A Virgin Media spokesperson apologized to the “small proportion” of customers affected and said the company had “completely redesigned” its customer services, addressing the shortfalls Ofcom identified ^[1][2]. The company noted that Ofcom’s latest data showed Virgin Media now had the fewest broadband complaints among providers ^[1][2]. The penalty follows a separate £23.8 million fine issued in December after Ofcom found the company put vulnerable people at risk during a digital landline switch ^[1][2].