Agents who had made bookings with the failed tour operator Air Parade, trading as Villa Parade and Luxury Villa Escapes, are being urged by the Civil Aviation Authority not to directly refund customers.
Huddersfield-based Air Parade, which sold packages mainly to Spain and Portugal, collapsed this week.
The CAA said it was working closely with the company, but in the meantime it has reminded agents that any payment they’ve taken for an ATOL-protected booking with Air Parade must be held on behalf of the Trustees of the Air Travel Trust.
It said: "As Air Parade has ceased trading, agents will now need to hold on to consumer payments on behalf of the Trustees of the ATT until directed otherwise by the Trustees of the ATT.
Agents must not refund consumers any monies unless explicitly directed to do so by the Trustees of the ATT."
Consumers with ATOL-protected flight-based packages will be able to make a claim from the ATT; those with accommodation-only bookings have been told to contact ABTA.
