Cruise companies, travel firms and wedding venues told to stop pocketing deposits when customers have to cancel 

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Travel firms, cruise companies and wedding venues are being told to stop pocketing customers’ deposits when they have to cancel a booking.

The competition watchdog is concerned that firms are making an unfair profit by charging non-refundable deposits.

Under the Consumer Rights Act, companies are barred from snatching a customer’s whole deposit if the business does not lose out financially from the cancellation. 

Cancellation scandal: Travel firms, cruise companies and wedding venues are being told to stop pocketing customers’ deposits when they have to cancel a booking (file picture)

For instance, a firm would be breaking the rules if it took a large sum from someone who cancelled a holiday or cruise and then re-sold the trip to another traveller for the same price.

The Competition and Markets Authority says companies should only keep customers’ deposits to cover their costs. 

Firms that refuse to treat customers fairly can be taken to court by the regulator and fined.

The CMA also found half of firms did not know the rules around unfair terms.