A number of agents took to social media last week to express their displeasure at being sent “demanding” letters from the CAA on behalf of Monarch’s administrators, KPMG, requesting the return of pipeline money.

Mark Swords of Swords Travel said his letter stated he had “one week to pay” before the issue was “passed to legal for recoveries”.

While some agents were surprised to learn that pipeline money needed to be paid back in gross – meaning they cannot keep hold of their commission – Abta has clarified that this has been the case for five years.

The CAA states on its website: “Commission was payable by the Atol holder, which has now entered administration. All pipeline monies, including the amounts you may have routinely deducted from payments to Monarch before it entered administration, are now payable to the Air Travel Trust.”

But it has also emerged that some letters sent out to agents included inaccuracies. Swords flagged this issue to his consortium, The Travel Network Group, which together with Abta approached the CAA to report it.

A CAA spokesperson said the letter-sending process was intended to ensure consumers get the refunds “more quickly than in previous failures”.

An Abta spokesperson advised agents: “If you are an agent and you’ve been told you’re holding money that you know you are not – go back [to the CAA] and clarify that.”

Meanwhile, a High Court ruling is due imminently on whether KPMG is legally able to sell Monarch’s slots.

Today marked the second day of the judicial review.