The Competition and Markets Authority (CMA) is investigating Teletext Holidays after receiving hundreds of complaints from people who claim to have not yet received refunds for package holidays cancelled due to the Covid pandemic.
According to the CMA, some Teletext customers said they were promised refunds by a certain date, only for this date to be pushed back.
The watchdog said on Thursday (4 February) it would engage Teletext to gather further evidence and establish whether the company has broken consumer protection law.
"We understand that the pandemic is presenting challenges for travel businesses, but it is important that the interests of consumers are properly protected and that businesses comply with the law," said CMA chief executive Andrea Coscelli.
"We’ll be engaging with Teletext to establish whether the law has been broken and will take further action if necessary."
A spokesperson for Truly Travel Ltd, which operates the Teletext Holidays brand, told TTG: “Despite the adverse conditions the travel industry faces and the lack of industry-specific support provided by the government, the business continues to work hard to process refunds as quickly as possible and will work closely with the CMA in order to reach a satisfactory outcome for all our customers as quickly as possible.”
To date, the CMA has written to more than 100 package holiday firms to remind them of their obligations with regards to refunds.
It has so far secured refund commitments from Loveholidays, Lastminute.com, Virgin Holidays, Tui, Sykes Holiday Cottages and Vacation Rentals.