VIRGIN Media has been fined £28million after repeatedly preventing customers from cancelling contracts.

Over a three year period the mishandling prevented or delayed customers from switching to a better deal, it is said.

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Industry regulator Ofcom said calls were deliberately dropped and customers were put on hold for no reason.

The fine is Ofcom’s largest ever and Virgin Media will need to pay the cash to the Treasury within two months.

The penalty was slashed by 30% as Virgin Media admitted guilt and agreed to settle the case.

Ofcom said its investigation uncovered excessive and unnecessary call transfers and Virgin “effectively encouraged” agents to behave this way.

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As a result, customers were put through “unreasonable effort, hassle and difficulty” when trying to cancel their contract.

Natalie Black, Ofcom’s group director, 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.”