Ofcom has fined Virgin Media £28 million for preventing or delaying customers from switching to another provider. The regulator said that the telecoms firm had mishandled calls over a near three-year period, from 1 January 2022 to 11 September 2024.
Deliberate Call-Dropping Tactics
The communications regulator said it found "deliberate call-dropping" tactics, as well as customers being put on hold "for no reason." The penalty was reduced by 30 percent given Virgin Media admitted its failing and agreed to settle the case, Ofcom added.
Ofcom said its investigation found that millions of customer calls during that period were likely mishandled by call agents "in order to delay or prevent customers from cancelling and switching to a competitor."
Tactics Used to Block Switches
Virgin was accused of a plethora of tactics, including excessive and unnecessary call transfers, repeated attempts to pressure customers to stay, and unnecessarily and repeatedly keeping customers on hold.
Ofcom said Virgin's commission scheme "effectively encouraged" and financially rewarded call centre agents for "behaving in this way."
Ofcom's Statement
Natalie Black, Ofcom's group director for infrastructure and connectivity, 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."
She 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."
Company Changes
It comes a week after the telecoms provider announced that it will combine its Commercial and Data and Operations functions into a new single Consumer unit led by Lyssa McGowan OBE, who joins the company’s Executive Committee reporting to CEO, Lutz Schüler. Lyssa joins with extensive retail and commercial leadership experience in major UK businesses including Pets at Home and Sky.
