The Competition and Markets Authority (CMA) is vowing to take Teletext Holidays to court unless the travel firm takes “urgent action” to improve how it handles refunds for package holiday customers.
Truly Holdings, which operates both Teletext Holidays and Alpharooms.com, signed undertakings in May 2021 committing to “address failures” in how it was refunding customers who had packages cancelled due to Covid-19 and complete refunds by the end of August 2021.
But the CMA said it was “concerned” that not enough Teletext Holidays customers were being refunded within the 14 days required by the law, with almost £600,000 in refunds still to be repaid to holidaymakers.
“Although Truly Holdings has paid back a significant number of customers within this two-week period, too many have been left waiting longer for the refunds due to them,” said the CMA.
“The CMA is also concerned that Truly Holdings has not done enough to repay customers who were already owed refunds at the time the undertakings were given.”
Teletext Holidays responded by saying it was “working as hard as it can to process the remaining refunds”.
So far, Truly Holdings has paid back £7.2 million of the £7.8 million owed to package holiday customers, with the company saying that it does not have the current bank details of those clients who have yet to be refunded.
But the CMA does “not consider that enough has been done” to refund these remaining customers and has written to Truly Holidays to threaten court action unless it “takes immediate steps to rectify the situation”.
Andrea Coscelli, chief executive of the CMA, said: “It is unacceptable that some package holiday customers are still not receiving refunds within the timeframe that they are legally entitled to.
“While we are pleased that many consumers have now received refunds they were due because of our intervention, we are clear that Truly Holdings must comply with the law. Unless it urgently takes steps to address the failures we have identified, we will take court action.”
Teletext Holidays responded in a statement: “The remaining customers have not been refunded because they have not provided us with their bank details. They have all been contacted repeatedly by email and telephone so that their bank details can be obtained and the refund paid.
“We have also published a Covid-19 refunds page on our website with a webform and an email address for customers to contact us. Unfortunately, these customers have not responded to our contact.”
The company insisted it had “engaged in a constructive dialogue” with the CMA and would “vigorously pursue any strategy” agreed with the regulator.
“We would like to assure our customers that, once the necessary details are received, the refunds will be paid,” added Teletext Holidays.