Teletext Holidays broke consumer law over delays in refunding millions of pounds for package trips cancelled during the coronavirus pandemic, the High Court has found.

Deputy Judge Jonathan Richards ruled that Truly Travel and Alpha Holidays – which traded as Teletext Holidays and Alpharooms respectively – were legally required to return customers’ money within 14 days.

The court action was launched by watchdog the Competition and Markets Authority (CMA), which said the decision highlights the importance of travel firms “respecting consumers’ refund rights”.

Teletext Holidays and Alpharooms were placed into liquidation late last year, so the ruling does not affect their customers awaiting refunds for cancellated package holidays.

They are still encouraged to submit claims to the Travel Trust Association.

CMA chief executive Andrea Coscelli said: “This should be a wake-up call to any business that thinks that it doesn’t need to honour customers’ refund rights.

“Today’s ruling confirms the CMA’s view that Teletext Holidays and Alpharooms broke the law by not providing the refunds customers were due within 14 days for cancelled package holidays.

We hope the decision will make it easier for people to get their money back

“While this ruling comes after these firms have been placed in liquidation, we hope the decision will make it easier for people to get their money back for a cancelled holiday in the future.

“Customers of Teletext Holidays and Alpharooms with outstanding refunds should get in touch with the Travel Trust Association.”

The CMA said in mid-October that its actions up to that point resulted in Truly Holidays – the parent company of Truly Travel and Alpha Holidays – paying more than £7 million owed to package holiday customers.

Agreements from LoveHolidays, Lastminute.com, Virgin Holidays and Tui UK were previously secured by the CMA after thousands of customers complained that the companies had failed to refund them for cancelled trips.

The travel sector has been one of the hardest hit during the pandemic and has faced the most scrutiny from the watchdog, which wrote to more than 100 firms reminding them of their responsibility to process all refunds within 14 days by law for any cancellations.