Vacation Rentals: Watchdog scrutiny sees refund policy reversal at holiday rental firm
Regulators say Vacation Rentals has now given a "formal commitment" that customers will have the option of a full refund.
Wednesday 10 June 2020 11:20, UK
Scrutiny by the competition regulator into the holiday accommodation sector has led to change in policy at a holiday lets firm.
The Competition and Markets Authority's investigation into cancellations and refund policies in the tourism industry has led Vacation Rentals to begin offering refunds to its customers.
It said the firm behind Hoseasons and Cottages.com voluntarily changed its policy after originally failing to offer refunds to all customers whose trips were cancelled due to the pandemic.
The CMA said Vacation Rentals has now given a "formal commitment" that customers will have the option of a full refund.
The firm was only one of a number of companies that had been reported to the CMA's COVID-19 Taskforce that was set up to monitor problems facing consumers as a result of the pandemic and the lockdown.
Andrea Coscelli, chief executive of the CMA, said he hopes other firms in the sector will similarly follow suit.
Mr Coscelli said: "Our COVID-19 Taskforce is working hard to ensure that consumers get what they are entitled to, so it's good news that Vacation Rentals has agreed to offer people the refunds they are due.
"We know the pandemic is presenting businesses with challenges too, but it's not right that people are being left hundreds or even thousands of pounds out of pocket - on top of having to sacrifice their holidays.
"Consumer protection law exists for a reason; businesses must observe the law or face the possibility of enforcement action."
The CMA said its COVID-19 Taskforce has so far received around 4,500 reports about holiday rental companies in the UK, with complaints about Vacation Rentals making up a significant proportion of those.
The regulator setup the taskforce after it received numerous complaints where consumers were being pressured to accept vouchers for holiday accommodation which can only be used during a more expensive period.