Lastminute.com to pay out more than £7 million in refunds to around 9,000 package holiday customers

Lastminute.com is to pay out more than £7 million in refunds to around 9,000 package holiday customers following intervention by the Competition and Markets Authority (CMA).

The consumer watchdog had received hundreds of complaints claiming the online travel and leisure company was not issuing refunds for trips cancelled due to the coronavirus pandemic, despite package holiday customers being legally entitled to these refunds within 14 days.

The CMA said on Tuesday that the company has now agreed to repay at least half the customers by December 16, and the rest no later than January 31. It will also refund those entitled on or after December 3 within 14 days.

The watchdog already secured a similar agreement from Virgin Holidays. It said it is continuing to investigate package holiday firms "following concerns that people are not getting the refunds they're entitled to when bookings can't go ahead because of the pandemic".

Chief executive Andrea Coscelli said: "Our action today means that customers whose holidays were cancelled by lastminute.com will receive their money back without undue delay.