Scramble after hols firm folds
A HOLIDAY firm’s collapse has sparked a flood of inquiries from people stranded abroad or in a flap about travel plans.
Lowcostholidays.com has gone into liquidation leaving a potential 27,000 people in limbo.
If you have booked your holiday with them here’s what you need to know: 1. THE BAD NEWS I am always advising you to book a package holiday covered by the UK Civil Aviation Authority’s Atol protection scheme. This means you are looked after if your agent goes bust. Sadly, lowcostholidays was not an Abta member and did not have an Atol licence. 2. IF YOU ARE CURRENTLY ON HOLIDAY You shouldn’t have problems with your flight back as travel agencies tend to pay for them when you book. It is likely lowcostholidays has paid for your flights home.
However, your hotel accommodation is a different matter. Most travel agents pay this only after your stay.
So if you are currently staying in a hotel booked by lowcostholidays the hotel will now know it isn’t going to be paid.
If that’s the case they can make you pay up straight away or even leave immediately.
This is precisely what has happened to many people who have written to me this week. 3. CLAIMING YOUR MONEY BACK All may not be lost. You may be able to claim your money back depending on how you paid.
If your booking cost was more than £100 and you paid all or part on your credit card you may be able to make a claim under section 75 Consumer Credit Act.
If successful, your credit card will refund your money.
Section 75 will not apply to debit cards but you can take advantage of the chargeback scheme. You must contact the card provider within 120 days. So far HSBC, RBS, Halifax and Lloyds have all confirmed they will honour chargeback scheme claims made by Lowcostholidays customers.
If you used online system PayPal, contact them and claim via their buyer protection scheme. You must do this within 180 days.
But if you booked a flight and hotel together via lowcostholidays, try to reclaim from the Spanish regulator: Govern de les Illes Balears. To claim, contact them via info.lchspain@caib.es.