Teletext Holidays will face court action over refund delays.
After numerous warnings, the Competition and Markets Authority (CMA) said it has filed a court order against the company seeking immediate refunds for customers.
"We’re taking Teletext Holidays to court because we don’t believe they’ve done enough to provide refunds to package holiday customers," the CMA tweeted.
"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," CMA chief executive Andrea Coscelli said.
The CMA said parent company Truly Holidays has returned £7 million owed to customers.
The company says it refunded over £10.8 million.
"We have engaged in constructive dialogue with the CMA and continue to vigorously pursue any strategy agreed with the CMA," a Teletext Holidays spokesperson said.
"The Government must ensure there are better protections for holidaymakers’ money, while the Civil Aviation Authority and Competition and Markets Authority must be given stronger powers to take action against companies that break consumer law," Rory Boland, editor of Which? Travel said.
