Teletext Holidays has given formal commitments to pay all outstanding refunds to customers for package holidays that it cancelled due to the COVID-19 pandemic.
The Competition and Markets Authority (CMA) opened an investigation into Teletext Holidays and its sister travel operator, Alpharooms.com (Alpharooms), on 4 February after receiving hundreds of complaints. This showed that people were not receiving refunds they were owed within 14 days, as required by law, for package holidays cancelled by the company due to the pandemic.
On 30 April, the CMA informed Truly Holdings Ltd, the company that operates Teletext Holidays and Alpharooms, that it was preparing to take court action against the firm for over £7m in outstanding refunds owed to its customers.
Truly Holdings Ltd has now signed formal commitments, known as undertakings, that ensure affected customers still owed a refund will get their money back. This includes a repayment schedule that prioritises refunds to customers with the longest-standing claims.
Andrea Coscelli, Chief Executive of the CMA, said: “There’s no excuse for travel firms to delay refunding customers what they are legally owed, even in these extraordinary times. Companies should be doing the right thing without the threat of court action. As a result of our work, customers who have waited many months for their money back from Teletext Holidays and Alpharooms will now receive a full refund. With international travel resuming and many people considering long awaited trips abroad, all package holiday firms must give refunds within 14 days where these are due, and should also provide clear cancellation information, so that no one else is unnecessarily put through this ordeal.”