What to do if you've been affected by the XL collapse

knotties

Like many others, we lost our family holiday to the collapse of Travel City Direct in September 2008. We were due to receive our travel package 10 days before departure. The collapse occurred 14 days before departure. As such we received no documentation from the company.

The holiday package was bought direct from Travel City Direct over the internet. Deposits and payments were made via our Lloyds debit card. As a late inclusion we decided to 'swim with the dolphins' and purchased tickets through the same operator but on this occasion paid using a Tesco Mastercard.

Following the collapse we made a claim to ATOL for reimbursement of the total amount of £4335. Not knowing if they would honour the Mastercard payment, we also made a claim to them under sec. 75 Credit Consumer Act, for part of the total being £676. Tesco were prompt in their reply and soon made payment for the amount paid on the Mastercard.

The CAA and ATOL, however, decided that Tesco Mastercard were responsible for the total amount, as part payment was made on their card and quoted sec. 75. Further correspondence from Tesco stated that they would not honour a further claim and suggested we claim from Lloyds bank. They continued to say that we can claim from the retailer or credit provider but that we must be able to prove a breach of contract.

I have read the act and it does suggest that if part payment is made using a Credit Card ,the bank is liable for all the debt. Issue 31 of 2003 on line FOS gives a similar scenario where a deposit was paid by credit card and subsequent payment by debit card. You found the credit card company was responsible for payment.

My scenario is similar but payment was first made by debit card followed by Credit card.

I would suggest that my contract for goods was with Travel City Direct. Following their failure ATOL insurance took over. To date we have not received goods or services in any part from the original contract.

My question is - Do we have a claim and who is responsible for the outstanding amount of £3659

lesleyhem

flyaway wrote: »

I put in a claim to Atol over six weeks ago and have not heard anything from them yet. I know they are inundated with claims as they have put a message on their web site. But has anybody received their refund? How long did it take?

I put a claim in at the end of October 08. It took while January 09 to send a refernce number! I managed to get through to them last week and they told me that everything was in order and that all they needed to do was get a section11 (whatever that it) signed off by travel agent. I live in hope (not)

flyaway

I would get on to the travel agent to make sure they have filled in their portion of the claim form (section 11) and sent it with relevent documentation on to ATOL.

Knotties: I would think that section 75 covers you with Tesco cc but why not give the Financial Ombudsman a ring who is very helpful.

quens

knotties wrote: »

Like many others, we lost our family holiday to the collapse of Travel City Direct in September 2008. We were due to receive our travel package 10 days before departure. The collapse occurred 14 days before departure. As such we received no documentation from the company.

The holiday package was bought direct from Travel City Direct over the internet. Deposits and payments were made via our Lloyds debit card. As a late inclusion we decided to 'swim with the dolphins' and purchased tickets through the same operator but on this occasion paid using a Tesco Mastercard.

Following the collapse we made a claim to ATOL for reimbursement of the total amount of £4335. Not knowing if they would honour the Mastercard payment, we also made a claim to them under sec. 75 Credit Consumer Act, for part of the total being £676. Tesco were prompt in their reply and soon made payment for the amount paid on the Mastercard.

The CAA and ATOL, however, decided that Tesco Mastercard were responsible for the total amount, as part payment was made on their card and quoted sec. 75. Further correspondence from Tesco stated that they would not honour a further claim and suggested we claim from Lloyds bank. They continued to say that we can claim from the retailer or credit provider but that we must be able to prove a breach of contract.

I have read the act and it does suggest that if part payment is made using a Credit Card ,the bank is liable for all the debt. Issue 31 of 2003 on line FOS gives a similar scenario where a deposit was paid by credit card and subsequent payment by debit card. You found the credit card company was responsible for payment.

My scenario is similar but payment was first made by debit card followed by Credit card.

I would suggest that my contract for goods was with Travel City Direct. Following their failure ATOL insurance took over. To date we have not received goods or services in any part from the original contract.

My question is - Do we have a claim and who is responsible for the outstanding amount of £3659

If anything was paid on credit card then the credit card company is liable,it is them you can claim from they are equally as liable as TCD.

RachelW1987

I've had my money back after receiving a letter on the 27th of October, it took about 16 weeks to come through. My mam is yet to receive her's but Thomsons are claiming her's for her. She was rang last week saying she has to go and fill yet another form out

UKNorthEast

RachelW1987 wrote: »

I've had my money back after receiving a letter on the 27th of October, it took about 16 weeks to come through. My mam is yet to receive her's but Thomsons are claiming her's for her. She was rang last week saying she has to go and fill yet another form out

Could you tell me what the number was at the start of your claim reference?

RachelW1987

Yeah it was CAA hope this helps

janannbad

Here goes this is my saga;

Booked with Travel Republic paid the full amount on our Visa Credit Card.

Flights.......Freedom Flights.

Transfer and Hotel 2 different companies.

Due to fly the day after XL went bust. No chance of getting out to the holiday with only 24 hours notice.
Rang Travel republic to be informed that it wasnt a Package Holiday but a Tailor made holiday, so no help from them. :mad:

Claimed to the CAA rightaway for the flight cost. Clamied to Visa for the remainder. (Hotel and Transfer)

After various letters and phone calls to and from Visa they refunded us the full amount.

Nothing at all from the CAA.

January we had a letter from Visa to say they would be taking the money back off us, as we had to claim through the CAA! ( been there done that!) but we had 12 weeks before they took it back to give us chance to get it back.

Rang CAA today they're still processing the claim but will only pay us back for the flight.

Rang Visa and they sorry but they wont be reimbursing us either. Try travel Republic they said.

Arghhhhhhh!

I'm going to try Trading Standards tomorrow to get some expert advice.
Anyone else in the same position?

knotties

light is on the horizon.
Tesco credit card initially refused a claim for the entire holiday, but as section 75 suggests, if you make part payment (£100 +) on the credit card, that bank is liable for all costs.
i sought advice from the Financial Ombudsman Service. i sent them this original post.
within 5 days Tesco wrote to us saying they had reviewed my claim and would make payment within 7 days.

get the FOS involved. they have a stated case against the credit card companies back in 2003. if the card company mucks you about they can be fined and ordered to pay the full amount plus compensation.

just google FOS and send them your plight

avqs43

I too booked through Travel Republic. Firstly sent details to HSBC credit card. They knocked me back. Filled in CAA form and sent it to Travel Republic. Received acknowledgement from CAA dated 24 November 2008, but nothing else has happened since. I am reluctant to ring CAA only to be fobbed off with "very busy, doing our best" and paying for the phone call. However, as some of you have been waiting 17 weeks, I still have a couple to go. I wait with anticipation.