Ofcom has launched an investigation into Virgin Media after complaints it is making it difficult for customers to cancel, as the media regulator prepares to name and shame telecoms companies lagging behind in offering financially stretched customers cheaper deals.
Ofcom said it was concerned about the number of complaints from customers saying it was difficult to leave Virgin Media, which has about 6 million broadband and pay-TV users and is a part of the larger Virgin Media O2 business.
Customers have raised problems including struggling to get through to an agent on the phone, being put on hold for long periods, or having their call terminated midway through. Many told Ofcom they had had to make “lengthy and repeated requests” to cancel, as their initial instruction had not been followed.
As well as investigating whether Virgin Media is complying with Ofcom’s contract termination rules, it will also look at whether Virgin Media staff appropriately informed customers of their right to escalate their complaint to an independent ombudsman.
Melanie Dawes, chief executive of Ofcom, said the regulator was investigating whether the company was “putting unnecessary barriers in the way of those that want to switch away”.
Virgin Media, which could face a significant fine if found to have broken Ofcom rules, said complaint rates relating to “difficulties leaving” had halved in the past year, and customer care staff levels had increased by 56% in the second half of last year.
“We are committed to providing our customers with excellent service, supporting them with any issues and giving clear options should they wish to leave,” said a spokesperson for Virgin Media. “We will keep working with Ofcom throughout its investigation, while making further improvements in how we handle customer complaints to provide a better overall experience.”
Ofcom also disclosed on Thursday that Dawes has sent a letter to the bosses of the UK biggest telecoms companies telling them to do more to promote “social tariffs”, cheaper broadband and mobile phone packages for people claiming universal credit, pension credit and some other benefits.
Dawes said that in December the regulator intended to publish an update on the availability of social tariffs which would, for the first time, show the levels of customer uptake broken down by telecoms provider, in effect naming and shaming those lagging behind in moving vulnerable customers to cheaper deals.
“We believe transparency is a very good mechanism for holding people to account,” said Dawes. “We are expecting more from the industry as a whole in helping to support customers through the cost of living crisis. That means no more excuses when it comes to offering and promoting social tariffs to eligible customers who could switch and save today.”
Ofcom’s latest research shows that just 5% – 220,000 – of 4.4m eligible homes have taken a social tariff.
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The UK’s telecoms companies have been accused of failing to raise awareness and “burying” the existence of low-cost deals on their websites, with Ofcom research showing just 9% of customers eligible for a social tariff say they heard about it from their telecoms provider.
The UK’s biggest telecoms companies pushed through the biggest round of mid-contract price hikes for more than 30 years this spring.
Ofcom is investigating the widespread practice of mid-contract price rises linked to inflation, usually also with an increase on top of up to 3.9%, which has increased some customers’ telecoms bills by more than 17%.
