Teletext Holidays looks set to be spared court action after signing undertakings with the Competition and Markets Authority (CMA) pledging to finish paying back all £7 million owed to customers in Covid refunds by the end of August.
The CMA opened an investigation into Teletext and sister operator Alpharooms.com in February after hundreds complained to the watchdog that they weren’t receiving refunds within 14 days for package trips cancelled owing to the pandemic.
Towards the end of April, after a warning in March, the CMA threatened to take Teletext and Alpharooms parent Truly Holdings Ltd to court over the millions of pounds it still owed customers.
On Wednesday (26 May), the CMA confirmed the firm had now signed formal commitments to ensure affected customers still awaiting refunds get their money back. The agreement includes a repayment schedule prioritising customers with the longest-standing claims.
"There’s no excuse for travel firms to delay refunding customers what they are legally owed, even in these extraordinary times," said CMA chief executive Andrea Coscelli. "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."