Virgin Media fined £28m for preventing customers from cancelling contracts

← Back to the feed

Virgin Media fined £28m for preventing customers from cancelling contracts

The Guardian · 2 months ago

Virgin Media has been fined £28m by the UK telecoms regulator Ofcom for repeatedly obstructing customers who were trying to cancel their contracts over a period of almost three years. It is the largest fine Ofcom has ever issued under its consumer protection rules, and it matters because the watchdog found the obstruction was deliberate, sending a warning to other providers that acting against customers' interests will carry serious financial penalties.

Ofcom found that Virgin Media "likely mishandled" millions of broadband, landline and pay TV calls between January 2022 and September 2024, using tactics such as deliberately dropping calls, making unnecessary transfers and placing customers on hold for "no reason" to delay or prevent them switching to competitors. The investigation, prompted by almost 2,000 complaints, also uncovered a commission scheme that financially rewarded retention agents for this behaviour. The £28m penalty was reduced by 30% after the company admitted its failings and settled. Virgin Media has since overhauled its customer services and must now ensure all affected complainants receive due compensation within six months. The fine follows a separate £23.8m penalty issued last December over risks to vulnerable customers.

  • Ofcom fines Virgin Media a record u00a328m for blocking contract cancellations.
  • Deliberate call-dropping and delays used to stop customers switching over nearly three years.
  • Fine cut 30% after Virgin Media admitted failings; affected customers to be compensated.

Art Business Celebrity Culture Entertainment UK World

Read the full article at the source →