A travel agent who went bankrupt this summer appears to have conned customers, drawing them in despite knowing the business was going under, MPs heard on Tuesday.
- A travel agent who went bankrupt this summer appears to have conned customers, drawing them in despite knowing the business was going under, MPs heard on Tuesday.
- The case centres on Efi Strakottou Travel & Tours Limited, which declared its insolvency in August. The announcement came as a shock to many who had already invested in various holiday packages.
- Reflecting on the situation, Droushiotis recalled raising alarms in 2019 over similar incidents, which, he emphasised, had resulted in even greater losses for customers.
- The Consumer Protection Service acknowledged that gaps in existing legislation had been noted two years ago, indicating a need for reform in how such businesses are regulated.
The case centres on Efi Strakottou Travel & Tours Limited, which declared its insolvency in August. The announcement came as a shock to many who had already invested in various holiday packages.
In a statement issued in September, the Consumer Protection Service (part of the commerce ministry) informed the public about the agency’s financial troubles, urging affected customers to submit claims for compensation by October 24.
Currently, the exact number of customers impacted remains unclear; the Consumer Protection Service has yet to ascertain the total amount lost. However, Marios Droushiotis from the consumers association revealed that 228 clients had collectively paid €103,000 to the travel agent.
Droushiotis expressed frustration towards both the Association of Cyprus Travel & Tourism Agents (Actta) and the Consumer Protection Service, accusing them of negligence in monitoring the agency’s operations. He warned that without appropriate compensation for the victims, legal action would be pursued.
Reflecting on the situation, Droushiotis recalled raising alarms in 2019 over similar incidents, which, he emphasised, had resulted in even greater losses for customers.
Christos Christou, vice-chairman of Actta, pointed to serious discrepancies in the reported turnover of the agency, which had declared only €60,000 to the regulator. This figure starkly contrasts with customer complaints exceeding €100,000. He labelled the actions of the travel agent as fraudulent, claiming they had manipulated their turnover just prior to declaring bankruptcy.
The Consumer Protection Service acknowledged that gaps in existing legislation had been noted two years ago, indicating a need for reform in how such businesses are regulated.
Greens MP Stavros Papadouris, who initiated discussions on the matter, insisted on accountability and called for the identification of the accountant who certified the travel agent’s questionable €60,000 turnover.
