Virgin Media hit with record fine – Are you due compensation?

Virgin Media has been fined £28 million by the UK telecoms regulator, Ofcom, for repeatedly preventing customers from cancelling their contracts. The watchdog found that millions of calls were mishandled over a period of almost three years, between January 2022 and September 2024.

The fine is the largest Ofcom has ever issued under its consumer protection rules. Virgin Media admitted to its failings and agreed to settle the case, which resulted in a 30% reduction in the penalty. Natalie Black, a director at Ofcom, said, "Today, we are sending a clear message that any provider who wilfully acts against the interests of their customers will pay a heavy price".

A spokesperson for Virgin Media has apologised to the customers who experienced issues, stating, "We’re committed to giving all our customers great service and apologise to the small proportion who experienced an issue when contacting us to agree a new deal or cancel their service in the past". It also confirmed that it has completely redesigned its customer services in recent years to address these historic shortfalls.

Why was Virgin Media fined?

Ofcom launched an investigation after receiving almost 2,000 complaints from Virgin Media broadband, landline, and pay-TV customers who had struggled to leave their contracts. The regulator's findings revealed a pattern of systemic and repeated failings that made it incredibly difficult for customers to switch to better deals.

The investigation highlighted several tactics used by the provider:

• Call dropping and delays - Customers faced deliberate call-dropping tactics, excessive and unnecessary transfers, and were repeatedly put on hold for no reason.
• Two-tier system - The company split its retention team into two tiers, with only the second tier allowed to process cancellations. This meant over a million callers had to repeat their cancellation request to another person.
• Financial incentives - Call centre agents were financially rewarded through a commission scheme that effectively encouraged them to delay or prevent cancellations.

Will affected customers be entitled to compensation?

If you were a Virgin Media customer who struggled to cancel your contract between January 2022 and September 2024, you may be entitled to compensation. Ofcom has ordered Virgin Media to review its records and ensure that every affected customer who complained receives the compensation or remedies they are entitled to within the next six months.

If you believe you have been affected, there are several practical steps you should take:

• Wait to be contacted - If you previously submitted a formal complaint to Virgin Media regarding cancellation difficulties during the affected period, the company has six months to review your case and contact you regarding potential redress.
• Submit a new complaint - If you experienced these issues but never formally complained, it is crucial to submit a complaint directly to Virgin Media now. Detail the dates you tried to cancel and the issues you faced.
• Check your credit score - Some customers who struggled to cancel had to resort to cancelling their direct debits, which led to missed payments and negatively impacted their credit scores. Review your credit report to see if any missed payments to Virgin Media have been recorded, and request that the company remove these marks if they resulted due to their cancellation failures.
• Escalate to the Ombudsman - If you submit a complaint and Virgin Media does not resolve it to your satisfaction within eight weeks, you have the right to escalate your case to the independent telecommunications ombudsman for a free and impartial review.

How to cancel your Virgin Media contract

When you want to switch providers or cancel your broadband, telecoms rules dictate that the procedures in place must not act as a disincentive. If you are looking to change your provider, consider the following steps:

• Check your contract terms - Make sure you know when your contract ends and whether any early exit fees apply before you try to cancel.
• Keep detailed records - Note down the dates and times of your calls, the names of the agents you speak with, and what was discussed.
• Stand your ground - If you have made up your mind to leave, be firm with your request and do not feel pressured into accepting a new deal if it does not suit your needs.
• Complain if necessary - If you feel your provider is making it unreasonably difficult to leave, you can submit a formal complaint. If the issue is not resolved after eight weeks, you can escalate it to the independent telecommunications ombudsman.

For a more detailed explanation, check out our article How to cancel Virgin Media, which includes additional tips if you are still in contract, as well as how to compare the best alternatives.