The Competition and Markets Authority have ordered Teletext Holidays to pay back £7 million owed to customers for cancelled holidays or it will take legal action.
The CMA said: “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.”
Teletext Holidays says it is trying to process refunds as “quickly and practically as possible.”
In a statement, Teletext Holidays said: “We have been in continuous dialogue with the CMA providing evidence of why the refund process has been delayed.”