UK telecoms regulator Ofcom has handed Virgin Media a £28 million fine following a multi-year investigation that revealed the provider deliberately obstructed customers attempting to cancel their contracts or switch to competitors.
The investigation, which spanned from January 2022 to September 2024, uncovered a systemic failure in Virgin Media’s customer service operations. According to the regulator, call center agents utilized a variety of friction tactics to prevent churn.
These included hanging up on customers, enforcing excessive hold times, and putting users through unnecessary call transfers. In many cases, customers were subjected to high-pressure sales tactics designed to force them to remain with the provider.
Central to the investigation was the discovery of a two-tier agent system. This structure often forced customers to repeat their cancellation requests multiple times to different representatives.
Ofcom found that these behaviors were driven by a commission scheme that financially incentivized agents to delay or prevent cancellations, leading to the mishandling of millions of customer interactions.
The impact on consumers extended beyond mere frustration. Some customers reported that subscriptions were renewed without notification, while others struggled to cancel direct debits—a failure that, in some instances, negatively impacted customers’ credit scores.
Virgin Media has admitted to the failings and accepted a 30% reduction in the fine for its cooperation. A spokesperson for the company apologized to those affected, stating that the firm has resolved complaints and provided compensation where appropriate.
The company further claimed to have overhauled its customer service through significant investment. According to Virgin Media, these changes have resulted in a sharp decline in complaints.
As part of the ruling, Ofcom has mandated that Virgin Media verify all complaining customers have received due redress within the next six months.