Truly Holdings in May signed undertakings committing to refund package holiday customers for trips cancelled owing to the Covid crisis. After reviewing Truly’s final report on its progress with the repayments, the CMA wrote to the firm warning it would take the company to court unless it took "urgent action" to improve how it handles package refunds.

However, on Monday (18 October), the CMA said it did not consider Truly had done enough to provide refunds to package holiday customers with outstanding claims, including recent cancellations, or to make sure that it pays all future refunds that are due within the 14 days required by law.

It has now filed proceedings requesting a court order that any outstanding refunds be paid immediately and that, going forward, all customers entitled to a refund are paid within 14 days. The CMA will also ask the court to order Truly put in place processes to ensure it complies with the law in future.

"As the CMA considers that Truly Holdings is in breach of the law and that harm to consumers is ongoing, it is seeking that the claim be expedited, so that the case can be heard more quickly," said the CMA. "However, it is for the court to determine a date for the hearing."

Andrea Coscelli, CMA chief executive, added: "Companies must abide by consumer protection law and treat their customers fairly. After engaging with Teletext Holidays extensively, we are now requesting a court order to make sure that the company immediately pays back the money it still owes to customers and refunds people within 14 days, going forward."

To date, Truly has repaid more than £7 million to package holiday customers.

‘Very disappointed’

A Truly spokesperson told TTG: "The company is working as hard as it can and continues to process the remaining refunds due under the Package Travel Regulations to our remaining customers, and as such is very disappointed by the latest action by the CMA.

"As at 11 October 2021, we owe £1.2 million towards historic and ongoing cancellations and have refunded over £10.8 million. We have engaged in constructive dialogue with the CMA  and continue to vigorously pursue any strategy agreed with the CMA.

"The company continues to urge customers who are due a refund under the Package Travel Regulations but have not received it, to contact us directly from their registered email address (which was used to make their booking)."