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Virgin Media fined £28m for preventing contract cancellations

newsJul 8, 202627610

Ofcom fined Virgin Media £28 million after finding the company repeatedly prevented customers from cancelling contracts by mishandling millions of phone calls between 1 January 2022 and 11 September 2024. Investigators found deliberate call-dropping, excessive and unnecessary call transfers, placing customers on hold for no reason, and repeated pressure to stay; Ofcom said Virgin's commission scheme effectively encouraged and rewarded those behaviors. The penalty was reduced by 30% because Virgin Media admitted the failings and agreed a settlement. Ofcom said the firm operated a two-tier retention-agent system that meant only second-tier agents could process cancellations, forcing more than one million callers to repeat their cancellation request. Ofcom received 1,881 complaints about cancellation difficulties and described this as its largest ever fine under consumer protection rules and its third-largest overall, after a £50 million Royal Mail fine in 2018 and a £42 million BT fine in 2017. Virgin Media said it has redesigned its customer service, invested heavily, and that complaints about difficulties leaving fell 89% last year compared with 2023. Ofcom said it has introduced safeguards including a One Touch Switch process launched in 2024 to make switching providers easier.

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