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Malta features in UK million pound scam

Two British holiday firms that had made millions of pounds from gullible consumers by offering free holidays to Malta and other sunny destinations were wound up in a British High Court this week

The companies, Holidays Direct Travel and Holidays Direct Promotions, had raked in an estimated GBP3.5 million by informing people that they had won a free holiday and that all they were required to pay was a GBP30 processing fee.

Some 65,000 people had taken up the offer after receiving unsolicited mailshots and telephone calls at their homes. However, an investigation carried out by the UK’s Trading Standards officers, who took action after receiving some 5,000 calls from concerned consumers, revealed that only 25 to 30 people had actually received holidays from the companies.

It is estimated that sun-hungry consumers had sent a total of GBP3.5 million to the company, but only GBP1.79 million had been traced back to the companies’ bank accounts.

A 36-year-old cleaner from East Sussex, who was led to believe that she had won a week-long break to Malta for her and her partner, explained, "I’ve never been abroad before and I was really excited. I’d chosen clothes and saved holiday money to be able to go."

However, when she tried to call the firm once the cheque she had sent in had been cashed, all she found was an answer phone directing her to another number, which turned out to be vacant.

"I was devastated and wanted to cry," she laments.

However, she was by no means alone in falling victim to the graft. In fact, others had ended up paying far more. Many were similarly disenchanted by the scheme, when they were forwarded further requests for strangely high payments for insurance, transfers, airport surcharges and car rentals – which ended up costing GBP230.

The winding down order delivered by the courts effectively hands over the affairs of the companies to an official receiver, who will attempt to ensure that the debts are paid off by selling any company assets and bringing the businesses to a close.