Groupon holiday scam - how to successfully get refund?

(Will try to keep this as short as possible, sorry!!)

Summary: Travel company via Groupon hastily booked random holiday dates on our behalf without our authorisation to attempt to nullify our Groupon "Right to Cancel" contract agreement once we requested a refund; has not given us any holiday details and refused to refund.

My husband & I booked a Groupon voucher today for flights + accommodation to Athens via travel company Clear Sky Holidays (CSH), valid for travel anytime between 1-24 March 2015. After purchasing the vouchers, we had to fill in an online form stating our travel availability, which we did and this was passed onto CSH.

Received a call within 30 minutes confirming receipt of our details but trying to charge us for "more convenient/better" flights that cost £160 more. I said I'd think about it, and asked them to call back within 15-20 minutes.

Long story short, it's a scam. We went back & forth on the phone all morning with them trying to haggle with us (the price for these "better" flights started at £160 then miraculously dropped to £40 - no haggling on our behalf, they just kept desperately dropping the price). Then finally when we'd had enough as we weren't getting anywhere with securing holiday dates, we requested a refund pointing out that as per the voucher agreement we had a "Right to Cancel" within 14 days as long as the booking had not been made, which it had not.

Big mistake telling them we knew about that detail - the advisor immediately changed tone and said a refund was impossible because the booking had been made. We were, needless to say, shocked and confused, as we'd received no booking confirmation nor had we, you know, agreed to any travel dates (!). When we informed him of this tiny detail, he typed out as hasty email to us (while still on the phone to us) that basically amounted to a personal, email from him "confirming" a booking:

Hi XXXXXX ,
Your Holiday is Confirm booking reference number is 917163
thanks

Poor spelling and grammar aside, this email included absolutely no pertinent information one would need, i.e. when we're flying out, where we're flying from, when we're returning, where we're staying, where the reference number can be checked... nothing. Again, we did not confirm any dates nor authorise him to go ahead and book anything. We're still not sure when we're allegedly going to Greece! We've just been told it's been "booked" and therefore non-refundable.

What we've done so far:

• Opened a payment dispute with PayPal (paid with debit card via PP to Groupon LTD) to try & get our money back
• Filed a complaint with ABTA (Association of British Travel Agents - CSH is a registered member)
• Filed a complaint with Groupon

Obviously there's nothing more to be done at this very moment - I will be calling Groupon customer service first thing tomorrow morning.

But mainly I was wondering if any of you had any advice regarding receiving a refund from them? The travel company has seemingly broken two consumer laws: Package Travel Regulations (PTR) act of 1992 and The Supply of Goods and Services Act 1982. If Groupon gives me any hassle tomorrow or refuses a refund, what are my rights and next steps of action?

Btw, a quick Google (which I SHOULD have done before, kicking myself now...) for "Clear Sky Holidays review" yields a terrifying TripAdvisor forum fourteen pages full of former scorned customers, dating back to 2012 with all the same problems as we're having now. The scam is well documented.

If you've read to the end of this, thank you so much. I truly appreciate any help or light you can shed on this for us. Thank you.