British telecommunications regulator Ofcom has fined Virgin Media £28 million for repeatedly blocking customers from cancelling their service contracts over nearly three years.
An investigation revealed that millions of customer phone calls between January 1, 2022, and September 11, 2024, were systematically mishandled to delay or prevent users from switching to rival providers.
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The penalty was reduced by 30% after the company admitted to systemic failures and agreed to settle the case.
According to regulatory records, Virgin Media used tactics such as excessive call transfers, prolonged holding times, and deliberate hang-ups by agents.
The regulator found that the company's financial commission structure rewarded customer service representatives for executing these blocking maneuvers.
Natalie Black, Group Director for Infrastructure and Connectivity at Ofcom, said the regulator had tried to resolve the issue informally in 2022 but found no willingness from the company.
The obstruction forced nearly 2,000 frustrated customers to lodge formal complaints after struggling to cancel phone, broadband, or pay-TV packages.
Black stated that the facts are clear: Virgin Media made it harder for customers to cancel and then did not fully cooperate with the investigation.
Dozens of customers resorted to canceling direct debit payments out of frustration, which damaged their personal credit scores due to automated flags for missed payments.
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Black noted that Ofcom is levying its largest ever fine under consumer protection rules for direct harm to consumers.