Virgin Media fined £28m – could you be owed compensation?

Virgin Media customers who made complaints around delays and difficulties when trying to cancel their contract could be entitled to compensation.

It comes as the telecoms giant has been fined a record £28million by the regulator Ofcom for making it too difficult for customers to switch.

You could be affected if were trying to leave the provider between January 2022 and September 2024.

The telecoms regulator said the company breached consumer protection rules by making it unreasonably difficult for customers to leave between January 2022 and September 2024.

Why has Virgin Media been fined?

Following an investigation, watchdog Ofcom found Virgin Media's cancellation process had created too many barriers for customers who wanted to leave.

The regular said customers experienced repeatedly transfers between different departments, long and unnecessary periods on hold, as well as pressure from staff to stay with Virgin Media after asking to cancel.

Furthermore, calls were being deliberately disconnected and cancellation requests not being processed properly.

Many customers had to make multiple attempts to cancel before finally succeeding.

Some became so frustrated they resorted to cancelling their Direct Debit instead, which Ofcom found led to missed payments and damage to their credit record.

Ofcom also found that Virgin Media's commission scheme financially rewarded some call centre staff for persuading customers not to cancel.

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."

What has Virgin Media changed?

Virgin Media says things are now different for customers and has made a number of improvements.

The firm said staff commission arrangements have changed, employee training improved and there are stronger quality checks on customer calls, as well as increased oversight of third-party call centres.

Who could get compensation?

As part of its enforcement action, Ofcom ordered Virgin Media to review every affected customer who made a complaint about cancellation difficulties.

And then check if they have received any compensation or other remedies they were entitled to - such as helping to correct a credit record if it has been affected.

Ofcom has said the review should be completed within six months.

That does not mean everyone who tried to cancel will automatically receive a refund or compensation.

However, you may have grounds to complain if, during the period 1 January 2022 to 11 September 2024, you experienced problems such as spending excessive time on hold, having calls disconnected, being charged after asking to cancel, paying for services longer than you wanted because your cancellation was delayed.

If you experienced problems cancelling your Virgin Media contract between 1 January 2022 and 11 September 2024, you can still complain to Virgin Media and explain what happened.

What are your rights if you want to cancel your broadband contract?

If you're unhappy with your broadband, TV or phone provider, you are well within your rights to cancel your contract or switch to another provider.

And telecoms companies cannot deliberately make it difficult for you to move, as well as pressuring you to stay once you've made it clear you want to leave.

If you are cancelling before your contract is up, you could be charged early exit fees but provider must explain these to you.

If you think your provider has treated you unfairly, complain directly to the company first.

Then if the issue isn't sorted after eight weeks, or you receive a deadlock letter sooner, you can usually take your complaint to an approved independent alternative dispute resolution (ADR) scheme.

The easy way to switch to a new broadband contract

In most cases, you don't need to contact your current provider to move to a new deal.

That's because of Ofcom's One Touch Switch system, introduced in 2024, which means a new broadband provider can arrange the switch on your behalf.

Simply find a new provider, and they'll contact your existing provider to organise the transfer.

This should make the process straightforward but remember to check for any exit fees from your exisiting provider.