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."
The CMA said after reviewing Truly’s financial standing and how quickly it could realistically make the necessary repayments, it had agreed a 31 August deadline with the firm.
It added the timeframe balanced the challenges facing the travel sector owing to the Covid crisis and the need to refund customers, in full, as quickly as possible.
The undertakings also contain a commitment to refunding customers in full within 14 days for any package holidays cancelled due to Covid-19 in the future, as well as a requirement to update the CMA regularly on its progress.
"If the firm fails to repay customers according to the undertakings, the CMA is prepared to take it to court," said the authority.
From 28 May, the Teletext and Alpharooms websites will be updated with dedicated pages explaining the refund process.
Customers issued refund credit notes that have not been redeemed, or expired, will be emailed shortly asking whether they want to convert their credit note into a cash refund.
A Teletext spokesperson told TTG: "We are pleased that a successful conclusion has been reached with the CMA in regards to the processing of refunds for our customers who have had their package holidays cancelled due to Covid-19.
"Further details of the refund timescale and process that we will be embarking upon will be published on our website by 28 May."
