AN INVESTIGATION was launched after regulators received hundreds of complaints from people not receiving refunds for package holidays cancelled due to the Coronavirus (COVID-19) pandemic.

More than 9,000 customers whose holidays were cancelled by lastminute.com are currently awaiting refunds, amounting to over £7 million.

Many of these will have had to wait more than 14 days, exceeding the repayment window required by law.

Following an investigation fro The Competition and Markets Authority (CMA), lastminute.com has now signed formal commitments – known as ‘undertakings’ – to pay these refunds as soon as possible and by January 31 at the latest.

The commitments secured by the CMA will also mean that anyone entitled to a refund for a holiday cancelled by lastminute.com on or after December 3 will be paid within 14 days.

To ensure that lastminute.com adheres to its commitments, the company must provide the CMA with regular reports on the progress of its refunds.

Andrea Coscelli, Chief Executive of the CMA, said: "Online travel agents have a legal responsibility to provide prompt refunds to customers whose holidays have been cancelled due to coronavirus – irrespective of whether the agent received refunds from airlines and accommodation providers.

"Our action means that customers whose holidays were cancelled by lastminute.com will receive their money back without undue delay."