The tens of thousands of Britons who lost holidays when XL collapsed began receiving refunds this week, although it could be weeks before all claims are settled.

The refunds are being issued by the Civil Aviation Authority to consumers who booked XL holidays under the Atol scheme.

Of the 200,000 XL passengers that were affected when the company went bust, around 80,000 bookings are eligible for refunds from the CAA.

The organisation, which normally deals with up to 2,000 claims at a time when a travel company goes bankrupt, has brought in two external companies to help deal with the claims. However, a spokesman warned that it could take longer than the normal 28 days to process the claims.

Not all holidaymakers have been left out of pocket. According to CAA spokesman Mark Wiltsher, some people who booked through travel agents were given the option to reassign their claim to the agent and book an alternative holiday, leaving the agent to claim from the CAA at a later date.

Those people who lost XL holiday bookings and are unable to claim from the CAA are expected to number up to 30,000.

They’re unable to claim a refund because they booked direct with the flight-only website xl.com, or booked components of their holidays with XL but not the complete package – such as flights but not hotels.

Their only option has been to appeal to their credit card provider. As long as the transaction was greater than £100, credit card users can claim under the Consumer Credit Act if they’ve not received paid-for goods or services. This compensation should also cover the cost of replacement flights for those stranded abroad.

Those who booked using debit cards were thought to be unable to claim refunds, but it has emerged that holders of Visa debit cards can claim.

The refunds can be made through the Visa Chargeback scheme, which provides for customers who pay for goods and services but do not receive them. Claims must be made within 120 days, which leaves cardholders who booked with XL just 64 days to apply.

According to Visa, most UK banks use its debit cards, although HSBC and the Royal Bank of Scotland Group, including NatWest, does not.

The CAA says it cannot say at this stage what the claims will amount to, but industry commentators have cited £60 million as a likely figure for the total payout.

Anyone wishing to claim needs to provide as much information as possible pertaining to their booking including booking details, receipt, confirmation invoice and proof of payment. Claim forms can be downloaded from caa.co.uk.

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