Ofcom has imposed a record £28 million fine on Virgin Media after an investigation found the company deliberately blocked customers from switching to rival providers. The penalty, the largest ever under Ofcom's consumer protection rules, follows a probe that revealed systematic failures over nearly three years, from January 1, 2022 to September 11, 2024.
How Virgin Media Prevented Customers from Leaving
The investigation uncovered a two-tier system where only certain staff members were authorized to process cancellations. This meant over a million callers had to repeat their requests to multiple agents without resolution. Staff were given financial incentives through a commission structure to discourage customers from leaving, leading to deliberate disconnections, excessive hold times, and intense pressure to stay.
Some households unable to close their accounts properly ended up cancelling direct debits, which caused missed payments and damaged their credit scores. The company also failed to fully cooperate with the inquiry, and had previously been penalized for breaking the same rules in 2018.
Ofcom's Statement and Penalty
Natalie Black, Ofcom's group director for enforcement, said: “The facts are clear. Virgin Media made it harder for customers to cancel their contracts and then did not fully cooperate with our investigation. As a result, we are levelling our largest ever fine under our consumer protection rules for direct harm to consumers. Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price. And by introducing the One Touch Switch Process, we've put in place further safeguards to prevent this from happening again.”
The final penalty includes a 30% reduction because Virgin Media admitted its failings and agreed to settle the case.
Remedies and Compensation
Ofcom has ordered Virgin Media to spend the next six months ensuring every affected customer who complained receives full compensation. The provider has also introduced changes to staff training, tracking systems, and bonus structures to prevent recurrence.
Advice for Customers Facing Cancellation Issues
If you experience similar obstacles when trying to leave a telecom provider, register a formal complaint through the provider's official procedures. Keep a detailed record of every conversation, including dates, times, and staff names. If the matter remains unresolved after six weeks, or if you receive a deadlock letter sooner, escalate the issue to the independent Communications Ombudsman for free.
