Virgin Media has been fined a record £28 million after communications regulator Ofcom concluded the company repeatedly made it unnecessarily difficult for customers trying to cancel their contracts.

Following an extensive investigation, Ofcom found that between January 2022 and September 2024, millions of customer calls were likely mishandled in ways that delayed or prevented people from leaving the provider. According to the regulator, some callers were deliberately disconnected, repeatedly placed on hold without justification or transferred between departments, even after making it clear they wanted to cancel their services.

The investigation also found that Virgin Media operated a two-tier cancellation system, meaning only certain customer retention agents had the authority to process cancellations. As a result, more than one million customers were forced to repeat their request to another adviser before their cancellation could even be considered. Ofcom said the company's commission structure effectively encouraged these practices by financially rewarding agents for retaining customers, while inadequate training and oversight allowed the behaviour to continue.

Explaining the decision, Ofcom's Group Director for Infrastructure and Connectivity, Natalie Black, 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."

Black added:

"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."

Ofcom also revealed that many frustrated customers resorted to cancelling their direct debits after repeated failed attempts to leave Virgin Media. In some cases, this led to missed payments being recorded against them, negatively affecting their credit scores. The regulator has now ordered the company to review every affected customer who complained and ensure they have received any compensation or other remedies they were entitled to within the next six months.

Virgin Media acknowledged its failings and agreed to settle the investigation, resulting in a 30 per cent reduction to the financial penalty. The company said it has since overhauled its customer service processes, including changes to staff training, commission structures and quality monitoring, adding that its complaint rates have since fallen significantly.

Responding to the fine, a Virgin Media spokesperson said:

"We recognise that we let some customers down through the way we handled contract cancellations during this period and we apologise unreservedly. Since then, we have completely transformed our customer service, introducing significant changes to our processes, systems and training, all focused on making it easier for customers to contact us and manage their accounts."

The spokesperson added:

"These improvements are reflected in Ofcom's own data, which shows we now have the lowest complaint levels of any major broadband provider. We have accepted Ofcom's findings relating to historical issues, and we're pleased the regulator has acknowledged the extensive improvements we've made."

The news quickly prompted thousands of reactions online, with many sharing their own experiences of trying to leave the provider. One person commented:

"When my dad passed away, my sister tried to cancel the broadband contract which was under his name. She told them multiple times that he had died but they STILL refused to cancel it until they spoke with him personally!!"

Another wrote:

"They put a default on my credit history and nearly got denied a mortgage. Called them so many times and they eventually removed it. No compensation, nothing…just a sorry."

Someone claiming to have previously worked for the company also shared their experience, writing:

"OMG, stop! I can't believe this!! I used to work in the customer retention department at Virgin Media and they made us do this and so much more so that customers couldn't cancel their contracts!! LOOL!"

The £28 million penalty is the largest fine Ofcom has issued under its consumer protection rules for direct harm to customers. While Virgin Media says it has made significant improvements since the period covered by the investigation, the case serves as a reminder of the importance of fair treatment for consumers and their right to leave a service without unnecessary obstacles.