Customers affected by the collapse of travel operator XL have still not received their payout because of a legal dispute over who is responsible.

The majority are being held-up by paperwork disputes, but a large number cannot proceed because industry body ATOL and travel agents are arguing over what constitutes a package holiday.

ATOL believe that separate elements of XL holidays purchased through the same company amount to a package holiday and that the agent should provide the compensation. Travel agents dispute this and want ATOL to meet the cost.

While the dispute continues to rage, thousands of holiday makers have been left in limbo and do not know when they will receive their compensation.

The Civil Aviation Authority says that the majority of those affected paid for their holiday on debit cards or by cash or cheque. Those claimants who paid by credit card should have had their case settled by their card provider.