A HOLIDAY company which has prompted complaints from East Lancashire customers is being investigated by the Office of Fair Trading.

Lancashire County Council's senior trading standards officer Julian Edwards said the investigation into Holidays Direct stretched nationwide, with the Office of Fair Trading contacting councils as far apart as Hampshire, Staffordshire and Suffolk.

And the Advertising Standards Authority has upheld a complaint from Suffolk County Council, which accused the company of misleading consumers by suggesting they had won a free holiday with no strings attached.

The latest customer to complain about Holidays Direct, which sends offers through the post informing people they have won a vacation, is Marie Pervaiz, 39, of Empress Street, Accrington.

Mrs Pervaiz had received the pamphlet through her front door, decided the offer was too good to be true, and sent off a £59 'administration fee' to an address near Buxton. But, she said the offer did not explain she would be charged £79.90 insurance, £70 airport tax and £169 for 'recommended' car hire.

The mother of six said: "I received confirmation of my booking for a week in Quarteria in Portugal, but it told me I would have to pay another £259.90 to get the holiday or lose my £59.

"The flight leaves from Gatwick, my third choice, so that means I would have to find another £100 for my partner and I to travel to London. It's disgusting.

"They didn't tell me there would be extras. The company should be closed and made to return the money they have taken from people." Chief trading standards officer Jim Potts warned that people should avoid any organisation they knew little about.

He added: "Don't be tempted. Don't send money to firms which promise a holiday in the future."

Anyone with complaints about Holidays Direct should contact the trading standards advice line on 0845 6001352. The company could not be contacted.