Monarch Airlines stops trading - latest info and your rights

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  • bradders1983
    bradders1983 Posts: 5,684
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    N4t4lie wrote: »
    Further to 'bradders1983' here is the full letter, at least it has now been clarified for all those who were in limbo:

    "Consumer and Markets Group
    ATOL Crisis Management
    FAILURE OF MONARCH HOLIDAYS LTD
    Date of Failure – 2 October 2017
    Monarch Holidays Ltd has ceased operating. It was licensed under the Air Travel Organisers’
    Licensing (ATOL) scheme managed by the Civil Aviation Authority (CAA). If you had a flight
    inclusive package booking with Monarch Holidays Ltd, you may be able to claim a refund of
    the money you paid subject to the Air Travel Trust’s Payment Policy which is available to read
    in full on the ATOL website.
    However, for consumers that paid Monarch Holidays Ltd directly by credit card the CAA are
    unable to authorise payment.
    When assessing claims the CAA acts as an agent of the Air Travel Trust (ATT). The ATT has
    an agreement with the main credit card acquirer who acted on behalf of the above named
    failed ATOL holder.
    Under the terms of this agreement you should instead apply to your credit card issuer for a
    refund of the payment you made by credit card.
    ATOL Crisis Management"

    I paid the deposit on Credit Card 1 but paid the rest in instalments on Credit Card 2.

    Do I claim on both for the amounts I spent on both? I realise this is a silly question but I have never done this before!
  • N4t4lie
    N4t4lie Posts: 197 Forumite
    I paid the deposit on Credit Card 1 but paid the rest in instalments on Credit Card 2.

    Do I claim on both for the amounts I spent on both? I realise this is a silly question but I have never done this before!

    This is where Section 75 gets fun.

    If you put 1p on a credit card and the rest in cash or debit card (assuming you are over the minimum £100) you claim the whole lot from the credit card provider.

    Now I assume you paid Monarch Holidays directly? If not you may not be able to use Section 75 as the link between you and the service or goods provider is broken. If this is the case you'll need to make two chargeback claims.

    If you paid Monarch Directly then I would make one claim for the whole amount from one of the card companies. Be prepared to tell them how it works though, clue yourself up on the rules (see Martin's guide on the main site). There is a template letter you can submit on there too. Personally I'd apply to the card I used first.
  • bradders1983
    bradders1983 Posts: 5,684
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    N4t4lie wrote: »
    This is where Section 75 gets fun.

    If you put 1p on a credit card and the rest in cash or debit card (assuming you are over the minimum £100) you claim the whole lot from the credit card provider.

    Now I assume you paid Monarch Holidays directly? If not you may not be able to use Section 75 as the link between you and the service or goods provider is broken. If this is the case you'll need to make two chargeback claims.

    If you paid Monarch Directly then I would make one claim for the whole amount from one of the card companies. Be prepared to tell them how it works though, clue yourself up on the rules (see Martin's guide on the main site). There is a template letter you can submit on there too. Personally I'd apply to the card I used first.

    The deposit was for £118 on Card One in January and the rest of the balance was about £670 on Card Two, in 7 instalments in July.

    All to Monarch either at point of booking or logging in on the customer portal, although the deposit and first two instalments are showing as "COSMOS HOLIDAYS" on the statements.

    Still think I should just apply to Card Company 1 given the above? Can I not do it on the phone?
  • N4t4lie
    N4t4lie Posts: 197 Forumite
    The deposit was for £118 on Card One in January and the rest of the balance was about £670 on Card Two, in 7 instalments in July.

    All to Monarch either at point of booking or logging in on the customer portal, although the deposit and first two instalments are showing as "COSMOS HOLIDAYS" on the statements.

    Still think I should just apply to Card Company 1 given the above? Can I not do it on the phone?

    Hmmm, maybe go for the one that says Monarch on the statement just to be sure, a bit like insurance companies they like to turn things down on technicalities.

    You can probably do it on the phone, make sure you get a reference number and quote it on all correspondence. It's all about having an audit trail to chase them with, you'd be amazed how many times they seem to not be able to find the tape of the original phone call when it matters, get them to back up all statements on at least an email, if not a letter.
  • bradders1983
    bradders1983 Posts: 5,684
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    N4t4lie wrote: »
    This is where Section 75 gets fun.

    If you put 1p on a credit card and the rest in cash or debit card (assuming you are over the minimum £100) you claim the whole lot from the credit card provider.

    Now I assume you paid Monarch Holidays directly? If not you may not be able to use Section 75 as the link between you and the service or goods provider is broken. If this is the case you'll need to make two chargeback claims.

    If you paid Monarch Directly then I would make one claim for the whole amount from one of the card companies. Be prepared to tell them how it works though, clue yourself up on the rules (see Martin's guide on the main site). There is a template letter you can submit on there too. Personally I'd apply to the card I used first.
    N4t4lie wrote: »
    Hmmm, maybe go for the one that says Monarch on the statement just to be sure, a bit like insurance companies they like to turn things down on technicalities.

    You can probably do it on the phone, make sure you get a reference number and quote it on all correspondence. It's all about having an audit trail to chase them with, you'd be amazed how many times they seem to not be able to find the tape of the original phone call when it matters, get them to back up all statements on at least an email, if not a letter.

    I shall ring Card 2 in the morning then (Natwest), although will do in office hours as their Disputes team is likely to be open then.
    Surely someone in that team will be aware of the CAA stance by then!
    Shall keep the forum updated. Just want the money back as I have booked another holiday on the strength of getting it back now :(

    If Natwest turn it down then surely ATOL would have to pay it out instead?
  • N4t4lie
    N4t4lie Posts: 197 Forumite
    I shall ring Card 2 in the morning then (Natwest), although will do in office hours as their Disputes team is likely to be open then.
    Surely someone in that team will be aware of the CAA stance by then!
    Shall keep the forum updated. Just want the money back as I have booked another holiday on the strength of getting it back now :(

    If Natwest turn it down then surely ATOL would have to pay it out instead?

    You may find you know more then them (do read the MSE Section 75 page, knowledge is power after all). Make sure they understand you are using Section 75 and not chargeback as it was multiple payments. I don't see how they can turn it down. Bought as a package over £100 per person 1p on a credit card. If they turn it down then you can go to the Ombudsmen and contest it.

    Be patient, but it looks like you will get your original money back. It will be frustrating, it will never move fast enough as a process, but you will get a refund.

    Keep the forum posted on progress the success stories do spur on those struggling to get a result.
  • bradders1983
    bradders1983 Posts: 5,684
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    Oh and the biggest instalment of £315 I paid clearly says Monarch, it's only two of the smaller ones that say Cosmos.

    Will post in the morning what happens on the phone, cheers for the help so far.
  • bagand96
    bagand96 Posts: 6,058
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    Oh and the biggest instalment of £315 I paid clearly says Monarch, it's only two of the smaller ones that say Cosmos.

    Will post in the morning what happens on the phone, cheers for the help so far.

    I wouldn’t get too hung up on the Cosmos issue. Cosmos was rebranded as Monarch Holidays a couple of years back. It was the same company. And although your statement only says Cosmos, the credit card company should have more detailed transaction information that shows exactly where the payment went. In any event it’s a fact that Cosmos/Monarch Holidays was the same entity, it won’t be hard to prove.

    With regards to the Section 75 claims. Any bank is going to try and minimise it’s losses. So they may well say they won’t refund the amount paid on another credit card as you should put a section 75 claim in with that bank. You may have to claim from both cards for the respective amounts.

    Glad to see the CAA have clarified the ATOL vs Section 75 question. I’m sure this is the same as happened previously (from memory I thoughtLowCostHolidays, but perhaps not that failure but someone else). Again, everyone will try and minimise their losses, and ATOL/ATT are no different in this regard.

    Credit card companies will of course try and fob you off to ATOL, but the bottom line is they are required to refund you in compliance with Section 75.
  • I paid for a Monarch flight with my Pay Pal balance - not a card via PP and it was over 180 days ago (14 Sep 2016) - Monarch actually issued me a credit voucher for this payment to use within a year from 12 October 2016 - so till 12 October 2017.


    When I could not use it - kind of weird I tried to book the morning all this hit - October 4th. I followed advice on here and tried to raise a dispute with Pay Pal but after doing so within a few seconds it all disspaeared and was no longer showing.

    Am guessing I just am out of luck on this one as it was over the 180 days ago original payment was made despite the fulfilment of service having not taklen place yet and so now have to stomach the hit / loss?
  • bradders1983
    bradders1983 Posts: 5,684
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    Natwest claim form completed!
    Now on hold to Vanquis as they have only just found out about this letter on the CAA site, I cant be the first person to have rung them about it since it went on the CAA website surely.
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