VIRGIN Holidays is set to refund £203million to customers with cancelled packaged holidays due to the coronavirus crisis.
The Competition and Markets Authority (CMA) has been investigating the firm after receiving hundreds of complaints from holidaymakers about Covid-19 cancellation refunds.
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Even when customers were told by Virgin Holidays that they would receive a refund, many had to wait for an “unreasonably long” time, the CMA said.
Some were told they would have to wait 120 days to receive their money back, it added.
Consumer law states that airlines and travel package providers must give customers’ their money back if the firm cancels their trip.
If your holiday is cancelled by your tour operator, the money has to be refunded within 14 days, or seven days if the airline called off your flights.
Since March 1, Virgin Holidays has received 53,000 refund requests.
Following the investigation, Virgin Holidays has now promised to ensure customers receive their money back without delay.
If your holiday was cancelled before September 1, you should receive your money back by October 30.
Alternatively, if your holiday was cancelled between September 1 and October 31, you’ll be repaid by November 20.
Virgin Holidays has also said it’ll make sure that customers who are entitled to a refund for a holiday cancelled on or after November 1 will get their money back within 14 days.
If Virgin Holidays doesn’t repay customers by these dates, the CMA said it’s prepared to take the company to court.
Andrea Coscelli, chief executive at the CMA, said: “People whose holidays have been cancelled due to coronavirus deserve a prompt and full refund.
“Our action means that Virgin Holidays customers should receive all their money back without further delay.
“We are continuing to investigate package holidays in relation to the coronavirus crisis.”
The Sun has contacted Virgin Holidays, part of Virgin Group, for comment.
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In July, the CMA had received more than 17,500 complaints about the difficulty in obtaining refunds or information from holiday firms.
The CMA has written to more than 100 package holiday companies reminding them of their obligations under consumer law to grant full-cash refunds “promptly and without undue delay”.
In mid-September, Tui promised to refund customers by the end of the month following action by the CMA.
