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Virgin Media fined £28m for preventing contract cancellations

newsJul 8, 202618222

Ofcom fined Virgin Media £28 million after finding the company repeatedly prevented or delayed customers from cancelling contracts, saying millions of calls were likely mishandled between 1 January 2022 and 11 September 2024. Investigators uncovered tactics including deliberate call-dropping, excessive transfers, unnecessary hold time, repeated pressure to stay, and a commission scheme that Ofcom said effectively rewarded those behaviours. Ofcom said Virgin operated a two-tier retention system that forced over a million callers to repeat cancellation requests because only second-tier agents could process exits. The penalty was reduced by 30% because Virgin admitted the failings and agreed a settlement; Ofcom called it its largest fine under consumer protection rules and its third largest overall after Royal Mail’s £50 million (2018) and BT’s £42 million (2017). Ofcom received 1,881 formal complaints about cancellation difficulties, and Natalie Black, Ofcom’s group director for infrastructure and connectivity, said the regulator would not tolerate providers acting against customer interests. Virgin Media apologised for the ‘‘small proportion’’ affected, said it has redesigned its customer service and cited an 89% drop in complaints about leaving versus 2023. Ofcom said it has introduced safeguards including the One Touch Switch process launched in 2024 to make switching providers easier.

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