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Virgin Media fined £28m for blocking customer switches — but switching is now easier

Virgin Media fined £28m for blocking switches; regulators have since made switching easier.

UK

Virgin Media fined £28m for blocking customer switches — but switching is now easier

Virgin Media has been fined £28m by regulator Ofcom for repeatedly preventing customers from cancelling contracts. The communications regulator said it uncovered tactics including agents deliberately hanging up calls and customers being put on hold “for no reason”. Millions of calls from customers were likely to have been mishandled over a three-year period, preventing or delaying them from switching to a better broadband, landline or pay-TV deal.

Anyone switching now, however, should not face the same hassle. Ofcom’s One Touch Switch service, launched in 2024, means you only have to contact your new provider, not negotiate with the old one. Ofcom says you should check whether you are in or out of contract, as you could face exit fees.

Virgin Media fined £28m for blocking switches; regulators have since made switching easier.

The fine comes at a time when regulators have made the switching process easier across multiple sectors, encouraging people to shop around as cost of living pressures have intensified. Changing energy supplier and tariff has also been simplified by Ofgem, though with some key caveats. The Current Account Switch Service now does most of the hard work for bank accounts: it automatically transfers direct debits and standing orders, moves the balance, redirects incoming payments such as benefits or salaries, and closes your old account. If anything goes wrong, you will be refunded any interest and charges on both old and new accounts.

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Banks even pay an incentive to people who switch their main current accounts, though customers must use the new account as their main one to qualify. Many had been put off by the perceived complication of wages being paid into that account and direct debits needing to be moved, but the switching service largely eliminates that friction.

Some people are motivated to switch because they are fed up with the service from their old supplier. Many do so in order to save money. So, customers may still decide to call their current provider to negotiate a better deal or ask them to match the offer they could get by switching. But with One Touch Switch, the process now requires only one call or a couple of clicks — and the evidence suggests it works.

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