LASTMINUTE.COM has been warned it must refund £1million to customers for cancelled holidays or face legal action.
The online travel agent promised the competitions watchdog to repay £7million to 9,000 holidaymakers still owed cash by the end of January.
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But the travel firm still owes 2,600 customers a collective £1million weeks after the deadline passed, according to the Competition and Markets Authority (CMA).
The watchdog has today given Lastminute.com seven days to refund the money or it will take the company to court.
The travel firm failed to stick to its promise to repay holidaymakers within 14 days of their package holiday being cancelled on or after December 3.
It is also accused of telling some package holiday customers to go directly to the airline to get the cost of their flight back, breaching consumer rules.
Travel: What are your rights to a refund?
MILLIONS of Brits have had holiday plans cancelled.
Firstly, speak to your airline or holiday firm about a refund or rearranging your plans.
You are entitled to a cash refund if they’ve cancelled your holiday but many have large delays or may offer vouchers instead.
If the Foreign and Commonwealth Office (FCO) advises against all but essential travel to countries or regions, you may also be covered for cancellations by your travel insurance if the holiday provider or airline is not helping you.
Keep in mind the travel insurance must have been taken out before the FCO advice changed, otherwise you won’t be covered.
If you don’t have travel insurance, you may be able to claim your money back through your credit or debit card provider.
Credit card payments between £100 and £30,000 are covered under Section 75 of the Consumer Rights Act.
To start a claim, you need to contact your credit card provider directly – Which? has a free tool that can help you do this.
Debit card claims or credit card claims of under £100 may be covered under similar Chargeback guarantees.
Under the Package Travel and Linked Travel Regulations 2018, if a package holiday is cancelled by the provider, the customer is legally entitled to a full refund from the agent within 14 days.
Millions of holidaymakers had trips cancelled in 2020 due to the coronavirus outbreak, leaving many travel firms struggling to process refunds.
The CMA has previously written to more than 100 package holiday firms, including Virgin Holidays, TUI and Sykes Cottages, to remind them of their obligations to comply with consumer protection law.
After hearing from frustrated Lastminute.com customers who’d been left out of pocket, the CMA told the firm in November to repay what it owed by January 31 2021.
At the time, the agents owed more than £7million in refunds for holidays cancelled on or before December 2.
Andrea Coscelli, chief executive of the CMA, said that it is “wholly unacceptable” that thousands of customers still haven’t received their money back.
She said: “We take breaches of commitments extremely seriously.
“If Lastminute.com does not comply with the law and pay people their outstanding refunds quickly, we will take the company to court.”
Lastminute.com said it is still committed to refund customers who are still owed cash, but blamed delays on technical and operational issues, and the third unexpected national lockdown.
It also said confusing advice issued by Ryanair over whether it would be issuing refunds for cancelled package holidays also played a part in the delays.
It added 50,000 package holiday customers have already been refunded more than £40million in the UK.
Andrea Bertoli, managing director at the firm, said: “We sincerely apologise to all customers still waiting for their package holiday refunds and we are making every effort to resolve any remaining delays customers are facing.”
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The news comes as furious travellers rage at the Government over its mixed messages on hols.
Many Brits desperate for a sunshine break have already booked trips – only for ministers Matt Hancock and Grant Shapps to disagree on whether holidays will be possible.
The Transport Secretary said until the entire country is vaccinated, travel restrictions are likely to remain in place – meaning even domestic visits may be out in 2021.
But on the same day, the Health Secretary told MPs he’s off to Cornwall this summer.
Sun Travel Editor Lisa Minot says many people who already delayed their holiday may just want their money back putting more pressure on industry
