Virgin Media fined record £28 million after Ofcom finds customers were blocked from cancelling

Virgin Media has been handed a record £28 million fine by communications regulator Ofcom after an investigation found the company made it unreasonably difficult for customers to cancel their broadband and television contracts.

The regulator said that between January 2022 and September 2024, millions of customer calls were likely to have been mishandled. Ofcom found evidence of excessive call transfers, long waiting times, dropped calls and failures to process cancellation requests, leaving many customers frustrated when trying to leave the provider.

According to Ofcom, Virgin Media operated a two-tier customer service system where only certain agents could complete cancellations. This often meant customers had to repeat their request several times before it could be processed. The regulator also found that commission incentives encouraged staff to retain customers rather than handle cancellation requests promptly.

The £28 million penalty is the largest Ofcom has issued for breaches of its consumer protection rules. The fine was reduced after Virgin Media admitted the failings and agreed to settle the investigation. The company has also been instructed to review affected customers and provide compensation where appropriate.

Virgin Media said it had already introduced significant improvements to its customer service, including enhanced staff training, updated monitoring systems and changes to commission structures. The company said these measures have contributed to lower complaint levels in recent months.

The case has sparked widespread debate about customer service standards across the broadband industry, with consumer groups welcoming the regulator's action and calling for providers to make switching services quicker and easier.