Virgin Media Fined $28 Million for Hindering Customer Cancellations
Telecoms giant penalized by Ofcom for systemic failings that delayed or prevented customers from ending contracts over nearly three years.
Virgin Media has been fined £28 million by the UK regulator Ofcom for making it difficult for customers to cancel their contracts. The penalty, imposed for failings over a period of nearly three years, stems from Ofcom's investigation into systemic issues that delayed or prevented customers from switching providers.
Ofcom stated that the telecoms company likely mishandled millions of calls between January 1, 2022, and September 11, 2024. The regulator identified excessive transfers, prolonged hold times, and deliberate call-dropping tactics as issues customers faced. The investigation was initiated after Ofcom received a significant number of complaints from customers struggling with contract terminations.
Natalie Black, Ofcom's Group Director for Infrastructure and Connectivity, emphasized the regulator's stance, stating, "The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation." She added that the fine is the largest ever levied under consumer protection rules for direct harm to consumers and serves as a warning to other providers.
According to Ofcom, Virgin Media implemented a two-tier system where only specific employees could process cancellations. This led to over a million callers being required to repeat their cancellation requests to multiple agents. The prolonged cancellation process reportedly caused some customers to cancel direct debits, resulting in missed payments that could negatively impact their credit scores.
A Virgin Media spokesperson apologized to the customers who experienced difficulties, stating the company has since redesigned its customer services and addressed the identified shortfalls. "Our customer service turnaround strategy, underpinned by significant investment, has been transformational," the spokesperson said. "Ofcom's latest data shows that Virgin Media is now the least-complained-about broadband provider with complaints at record lows."