An investigation by the Competition & Markets Authority (CMA) has found Teletext Holidays failed to refund many of its customers for package holidays cancelled due to the pandemic.
The CMA has now written to Teletext to set out its concerns that the company has not refunded many of its customers in accordance with its obligations under the Package Travel Regulations.
The body has also set out its expectations regarding how the company should now comply with its obligations.
Teletext now has the opportunity to address the detailed concerns and avoid any potential court action by signing formal commitments – known as ‘undertakings’ – to refund the affected consumers as soon as possible and take steps to ensure it complies with the Package Travel Regulations going forward.
Teletext Holidays is the trading name of Truly Travel Limited, which is a subsidiary of Truly Holdings Limited.
The investigation has included Alpha Holidays, trading as Alpharooms.com, which is also a subsidiary of Truly Holdings.
Commenting on the news, Rory Boland, editor of Which? Travel, said: “It is simply wrong that Teletext Holidays has left many of its customers to foot the bill for cancelled holidays when they were legally entitled to refunds.
“It is positive to see the regulator take these steps but very concerning that people are still owed money over a year after the travel disruption caused by coronavirus first began.
“Teletext must take swift action to refund all of those that are owed money and sign the undertakings to the CMA, confirming that it will not leave its customers in this dire position again.
“If these commitments aren’t met, the regulator should take enforcement steps quickly to ensure customers do not continue to wait for their money.”