HUNDREDS of agents offering split contracts have been
warned they could face prosecution if they avoid applying for a new mini-ATOL
licence within the next month.

The Civil Aviation Authority has a list of 500
companies it knows are split-contracting – but only between 20 and 30 have  applied for the licence so far.

The mini-ATOL is being brought in from October 8 to
give financial protection to holidaymakers travelling under split contracts.

The CAA has threatened a crackdown if the hundreds of
outstanding applications are not made before the deadline.

Deputy head of the consumer protection group David
Moesli said: “Towards the latter part of the year, we will be contacting
companies that haven’t applied for the ATOL and if they don’t comply we will be
taking enforcement action.”

Although the CAA hasn’t got the power to fine agents,
it can take them to court which could lead to a possible fine.