BOSTON — An online travel agency will pay more than $500,000 to provide full refunds to over 500 Massachusetts consumers for allegedly withholding payment to hotels for reservations already paid for by consumers, collecting payments for travel reservations despite knowing they had been or would be cancelled due to the COVID-19 pandemic, and refusing to pay refunds, according to the state Attorney General’s Office.

In a proposed consent judgment filed in Suffolk Superior Court, the Florida-based BookIt Operating LLC d/b/a BookIt.com (BookIt) and its CEO and director Arthur Paul Finlaw have agreed that BookIt will pay $551,835 to 539 Massachusetts consumers. All affected Massachusetts consumers will be made whole by the settlement, and on average, consumers will receive over $1,000, with some receiving more than $8,000.