Travel giant that ducked refunds is on verge of insolvency

FOR THE past 18 months Teletext Holidays and Alpharooms (both owned by Truly Holdings Limited) have flouted consumer law (and dodged the Competition and Markets Authority, CMA) by delaying refunds to consumers for cancelled holidays. Despite this, the firm has been allowed to continue to trade and take money from consumers for new holidays. In September, Truly Holdings gave me a statement for my LBC radio show The Consumer Hour claiming it was working with the CMA to get everyone refunded. I was highly sceptical and urged the CMA to take legal action to protect consumers, but at that stage it allowed the firm yet more time to pay back customers.

Finally, the CMA launched legal action last month, but this has now proven to be too little, too late, as Truly Travel is now looking to appoint liquidators because it can’t meet bills to non-travel creditors.

The news will be of concern for the 4,000 consumers who are either waiting for a refund or who have a holiday booked with either Teletext or Alpharooms. Yet, ironically, the reality is customers of both brands are now in a far better position.

What will happen with Teletext refund?

All Teletext bookings are ATOL-protected. This means if Truly Travel does go bust you will be entitled to a refund from the ATOL scheme.

What will happen with my Alpharooms refund?

All Alpharooms bookings were for accommodation only so are not ATOL-protected. However, your money will have been protected in a trust account operated by trade body the Travel Trust Association (TTA) so you will be contacted by TTA in relation to your refund.

What will happen with my future Alpharooms booking?

As with those waiting on refunds already, those with future bookings will receive a refund via TTA.

What will happen with my future Teletext Holidays booking?

The TTA has confirmed that it has taken on ALL Teletext package holidays and that these holidays can still go ahead.

These holidays are also ATOL protected, so even if Truly does go bust those with a future booking will receive either a refund or replacement holiday from ATOL.

I am still waiting for a statement from Truly Holdings Ltd, but last night the Travel Trust Association confirmed Truly’s membership was closed last week, telling me: “We have been made aware the directors of Truly Holdings, who own Truly Travel and Alpha Holidays, are in process of appointing liquidators.”

This doesn’t affect its trust account for refunds, however.