By Ben Kerrigan-
Virgin Holidays have been forced to refund £203m for cancelled holidays, after receiving hundreds of complaints that people were not receiving refunds for holidays cancelled due to the pandemic.
Many customers have had to wait for an unreasonably long time, with some being told they would have to wait 120 days to receive their money back. Since 1 March 2020, the company has received 53,000 refund requests.
All holidays cancelled last month or this month will be refunded by 20 November. Package holidays cancelled by an operator are legally to be refunded within 14 days, but some people have waited three months to get their money back
The CMA has secured formal commitments from Virgin Holidays that ensures all of its customers receive their money without undue delay.
Virgin Holidays will also ensure that people who are entitled to a refund for a holiday cancelled on or after 1 November 2020 will be paid within 14 days.
As a result, all Virgin Holidays businesses that offer package holidays, including Virgin Holidays Cruises.
To ensure that Virgin Holidays adheres to its commitments, the company must provide the CMA with regular reports on the progress of its repayments.
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. Should we find that any business is not complying with consumer protection law, we won’t hesitate to take action.
Today’s announcement follows significant action by the CMA in relation to holiday cancellations. It has written to over 100 package holiday firms to remind them of their obligations to comply with consumer protection law, and has already secured refund commitments from TUI UK, Sykes Cottages and Vacation Rentals.
In order to help businesses to understand their legal obligations with regard to consumer protection law, the CMA published a statement on its view of how the law relates to cancellations and refunds due to coronavirus.