Business

Regulator threatens lastminute.com with court action over holiday refunds

In the last year, millions of consumers have had their holidays canceled because of the pandemic. And, many have faced difficulties when trying to get a refund. 

In fact, a report by Which? found that over £1 billion in refunds was being withheld unlawfully from customers in the UK alone, with similar figures being seen around the world. 

Now, one online travel agent, lastminute.com, is facing court action for failing to pay its outstanding refunds. Unless it pays consumers the money they’re owed, it could be given a large fine by the courts. 

In December, lastminute.com pledged to refund its customers money for package holidays that had been canceled due to the pandemic. But, it failed to do this in time for the deadline, which was the end of January this year. 

So far, over 9,000 customers have made a refund claim over their holidays being canceled. This totaled over £7 million overall, but £1million of this is still outstanding, with 2,600 customers still not receiving their compensation. 

Additionally, the travel agent supposedly advised some customers to go to the airline directly to get a refund on the flight costs, which goes against the regulations. 

According to the regulator, the Competition and Markets Authority (CMA), the full amount needs to be paid back to the firm’s customers in the next seven days. Otherwise, it will proceed with the court action to recover the funds. 

Although the company claims the refund process has been more complex than it expects, the regulator says it has behaved in an unacceptable way. 

CMA chief executive Andrea Coscelli said, “It is wholly unacceptable that thousands of Lastminute.com customers are still waiting for full refunds for package holidays despite the commitments the company signed with us.”

“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.”

Linda Conrad

Recent Posts

Why Halloween Candy Is Getting Pricier — and Less Chocolatey

  Halloween candy lovers may notice something different this year — higher prices, smaller portions,…

1 week ago

Microsoft’s AI Chief: Building an AI You Can Trust Your Kids To Use

  Artificial intelligence is evolving rapidly, reshaping how people interact with technology — and even…

1 week ago

What Got More Expensive in September

  September’s Consumer Price Index report revealed that while inflation pressures remain uneven, some key…

1 week ago

mRNA COVID Vaccines Show Promise in Boosting Cancer Treatment Success

Widely administered COVID-19 vaccines may deliver an unexpected advantage for certain cancer patients by enhancing…

1 week ago

Samsung Unveils Mixed Reality Headset to Challenge Apple’s Dominance

  Digital mapping services already enable virtual exploration of distant locations from the comfort of…

2 weeks ago

Why the Fed Can’t Rescue Struggling Young Tech Workers

Thousands of young Americans armed with computer science degrees are finding it increasingly difficult to…

2 weeks ago