Teletext has been given one last chance to refund passengers or face legal action.
The Competition and Markets Authority (CMA) says it will take the agent to court if it doesn’t pay the outstanding refunds, or commit to do so, ‘without unnecessary delay’.
It launched an investigation into Teletext in February after hundreds of customers complained they were still waiting for refunds for holidays cancelled months ago.
They say the agent has promised to return their money, but has repeatedly pushed back the date for the refunds.
The CMA asked Teletext to provide it with formal undertakings that customers would be refunded, but it said it hasn’t received undertakings ‘sufficient to address the CMA’s concerns’.
It has now written to the online travel agent to say that it is preparing to take court action. However, it has given Teletext a last chance before launching legal action.
CMA Chief Executive Andrea Coscelli said: “There must be no more delays to Teletext refunding customers for holidays they could not take because of the pandemic.
“It is unacceptable that many have already waited months for the refunds they are legally entitled to.
“We take very seriously the ongoing failure of Teletext Holidays to meet its obligations. The firm must now comply with the law and commit to refunding its customers. If it does not do so, we will not hesitate to pursue this case in court.”