Virgin Media has been fined ÂŁ28 million by Ofcom after the UK communications regulator found that customers were repeatedly delayed or prevented from cancelling contracts and switching to another provider.
The penalty follows an investigation into calls handled between 1 January 2022 and 11 September 2024. Ofcom said millions of calls were likely mishandled, with customers facing unnecessary transfers, long holds, repeated pressure to stay and alleged deliberate call-dropping.
The case matters because switching provider is one of the main ways households can cut broadband, landline and phone costs. Ofcom’s ruling suggests some Virgin Media customers who tried to leave were instead pushed through a process that made cancellation harder than it should have been.
Why Virgin Media was fined
Ofcom said Virgin Media created unreasonable barriers for customers who had already decided to cancel. The regulator identified excessive transfers between agents, customers being kept on hold for no clear reason, repeated retention attempts and calls being dropped before cancellations were completed.
A key issue was the company’s two-tier retention system. Ofcom found that only second-tier retention agents could process cancellations, meaning many customers first had to speak to someone who could not complete the request.
As a result, more than one million callers were made to repeat their cancellation request to at least one additional agent.
Ofcom’s official enforcement announcement said Virgin Media’s practices caused direct harm by putting customers through unnecessary effort, hassle and difficulty when trying to leave.
Commission scheme came under scrutiny
Ofcom also said Virgin Media’s commission scheme effectively encouraged and financially rewarded agents for behaviour that delayed or prevented cancellations.
That finding is important because it suggests the issue was not limited to isolated poor service. The regulator concluded that the way cancellation calls were structured and incentivised contributed to the problem.
Ofcom received 1,881 complaints from customers who reported difficulties cancelling. The regulator said the wider call evidence showed that millions of calls were likely to have been mishandled over the investigation period.
Record penalty under consumer rules
The £28 million fine is Ofcom’s largest-ever penalty under its consumer protection rules and its third-largest fine overall.
The penalty was reduced by 30% because Virgin Media admitted its failings and agreed to settle the case. Ofcom also said the company did not fully cooperate during parts of the investigation.
Natalie Black, Ofcom’s group director for infrastructure and connectivity, said Virgin Media made it harder for customers to cancel and that providers acting against customer interests would pay a heavy price.
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What customers should know now
The ruling does not automatically mean every affected customer will receive compensation. Customers should wait for any confirmed redress process from Virgin Media or Ofcom before assuming a payout applies.
Anyone who believes they were unfairly delayed while trying to cancel should keep records of call dates, complaint numbers, emails, chat transcripts and bills. Those records can help if a complaint needs to be escalated to an approved dispute resolution scheme.
Customers interested in wider service protections may also want to understand when UK broadband customers may qualify for automatic compensation under Ofcom’s rules.
Why One Touch Switch matters
Ofcom pointed to its One Touch Switch process, launched in 2024, as a safeguard designed to make broadband and landline switching easier.
The process lets customers begin a switch through their new provider, reducing the need to negotiate directly with the company they are leaving. That is intended to cut friction at the point where cancellation pressure can be strongest.
For Virgin Media, the fine brings financial and reputational pressure. For the wider telecom industry, the message is clear: providers can offer better deals to retain customers, but they cannot turn cancellation into an obstacle course.
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