Britain's competitions watchdog has launched legal action against a 海角视频 holiday company for its "inadequate progress" on refunding package trips cancelled due to the pandemic.
The Competition and Markets Authority (CMA) announced in May that Truly Holdings, the business that operates Teletext Holidays and sister company Alpharooms.com, had signed a voluntary agreement committing to refund package holiday customers for trips cancelled because of Covid.
It set out a repayment schedule for Truly Holdings, with the first deadline for refunds on June 30 for people who had holidays cancelled before July 31 last year. This was followed by a second deadline in July, for holidays cancelled between August 1 and October 31, 2020. The third deadline of August 31 was for customers with bookings cancelled between November 1 last year and May 24 this year.
READ MORE: {}
Dozens of people got in touch with BusinessLive in August to say they had still not been paid - despite the deadline - with some owed thousands of pounds. Hundreds of people have made complaints to the CMA about Truly Holdings and there are now 3,100 individuals who have joined a Facebook group called ‘Alpharooms No Refund Support’.
The watchdog warned in September that it would take Truly Holdings to court unless it took urgent action to process refunds.
On Monday (October 18) the CMA said: "The CMA does not consider that Truly Holdings has done enough to provide refunds to package holiday 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.
"The CMA has therefore 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 CMA will also be asking the court to order that Truly Holdings puts in place appropriate processes to ensure it complies with the law in the future."
The CMA’s investigation relates to package travel holidays booked with Teletext Holidays and Alpharooms.com, not flights or accommodation booked on a standalone basis.
Most Read
The CMA said it has asked for the claim to be heard quickly but noted it was for the court to determine a date for the hearing.
A spokesperson for Truly Travel said: "The company is working as hard as it can and continues to process the remaining refunds due under the Package Travel Regulations to our remaining customers, and as such is very disappointed by the latest action by the CMA.
"As of October 11, 2021, we owe £1.2m towards historic and ongoing cancellations and have refunded over £10.8m. We have engaged in constructive dialogue with the CMA and continue to vigorously pursue any strategy agreed with the CMA.
"The company continues to urge customers who are due a refund under the Package Travel Regulations but have not received it, to contact us directly from their registered email address (which was used to make their booking) on covidwebform@trulytravel.com with their booking reference number. If we need more information, we will request it."
Martin, from Clevedon in North Somerset, said he was “furious” after Alpharooms took thousands of pounds from his bank account after his holiday to Madeira was cancelled this year.
He originally paid a £20 booking fee, but decided to cancel the holiday in May. Despite cancelling the trip, Martin said Alpharooms took two payments without his permission.
Martin said he was able to claim the money back through HSBC - after telling the bank the payment had not been authorised. Alpharooms did not respond when BusinessLive asked them for comment about this.
Don’t miss
Alan, who is based in Newton Longville in Buckinghamshire, said he was forced to take the company to the small claims court.
He booked and paid in full for a hotel in Tenerife in November 2019. The trip was cancelled due to Covid in April 2020. His refund was meant to be paid by the end of June, but in August he had still not received any money.
“I tried calling them several times, each time being kept on hold for an hour before either they answer and put the phone down or promise someone will call back; this of course never happens," he told BusinessLive at the time.
Andrea Coscelli, chief executive of the CMA, 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."
To get stories like this and all the latest business news straight to your inbox, why not sign up to our daily business roundup?