CMA launches court action against Teletext Holidays
By Michele Maatouk
Date: Monday 18 Oct 2021
(Sharecast News) - The Competition and Markets Authority has launched court action against Teletext Holidays over inadequate progress on refunds to package holiday customers who were affected by the pandemic.
In May, Truly Holdings, the operator of Teletext Holiday, and sister company Alpharooms.com agreed to refund package holiday customers for trips cancelled during the pandemic.
After reviewing Truly's final report on progress with repayments, the CMA wrote to the group last month saying it would take the company to court unless it took urgent action to improve how it handles refunds to package holiday customers.
The competition watchdog said on Monday that Truly had not done enough to provide refunds to customers with outstanding claims, including recent cancellations, or to make sure that it pays all future refunds that are due within the 14 days required by law.
As a result, the CMA has filed proceedings requesting a court order that outstanding refunds be immediately repaid and that, going forward, customers who are entitled to a refund are repaid within 14 days. The watchdog will also be asking the court to order Truly put in place appropriate processes to ensure it complies with the law.
CMA chief executive Andrea Coscelli said: "Companies must abide by consumer protection law and treat their customers fairly.
"After engaging with Teletext Holidays extensively, we are now requesting a court order to make sure that the company immediately pays back the money it still owes to customers and refunds people within 14 days, going forward.
"As a result of the CMA's action to date, Truly Holdings has so far paid over £7m owed to package holiday customers."
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