Freedom Direct 'close to collapse'

Tmesis_2

carda wrote: »

I would also like to know why Freedoms funds are in question seeing they folded because of their Atol licence not being renewed - sure all money paid should be available

Balances are paid to suppliers based on number of weeks before departure.

Accommodation suppliers are paid 2 weeks prior to departure. Whilst Freedom always paid on time, this inevitably means there will be a few in the next few weeks who have paid their holiday balances (due 8-12 weeks prior to departure) but the accommodation supplier had not yet been paid.

This is normal trading for travel agents but obviously in the case of a collapse like this it causes problems.

If the holiday has been paid for by Freedom (e.g. in the case of a package holiday through someone like JMC where it's paid when the customer pays) then there should be no reason why the customer can't go.

pinksprout

Hi carda, it sounds like Med Hotels are playing the same game as Hotels4u. If you have now paid for your accommodation twice are you planning to claim a refund from you credit card provider? ABTA inform me that their legal team are pursuing the matter with Hotels4u who are supposedly in breach of Agency Law and should NOT have cancelled our accommodation booking regardless of whether or not they had received the funds from Freedom Direct. Hays Travel emailed me yesterday with, I presume, a standard email advising me that "the amount I have paid for my accommodation appears to be lost" and to rebook (through them of course, although they confirm that they will honour the original booking price) and claim a refund from my credit card company. More commission for them ... Not unsuprisingly my credit card companies are not happy about refunding as ABTA will not provide the usual letter stating that funds are unrecoverable from Freedom Direct and I do not yet have any assurance that I will get my money back.

r18rws

Is it not the case that the operator is in contract with the client and the agent (Freedom Direct) is basically irrelevant? So the company you have booked with Med Hotels and so on, are in contract with the client and can not cancel due to non payment if the client can prove they have actually paid.

If they( Freedom Direct) have a clients money but do not pass on to the operator that the operators issue with the administrator.

Not all agents pay suppliers or operators that far ahead though TMESIS, maybe some but many pay suppliers at other negiotiated times, even after departure.

That said though, the agent relationship should not affect the end user(customer).

Where Freedom Direct are the Tour Operator under their own ATOL that may be a different story.

pinksprout

Yes r18rws that is what ABTA say but Hotels4u have nevertheless cancelled my booking and have refused to confirm anything in writing to support my claim for a refund from my credit card providers as "I am not their client". What can I do? Of course they have offered to rebook as I said before, for the original price plus a further £254.04. My accommodation voucher states " Hotels4U.com are acting as a retail agent for Yesil Dalyan Travel (based in Turkey) with whom your accommodation is booked" The Booking Summary under 'Travel Details' states that the "Provider is Hotels4u.com". Flights were booked separately direct with the airline but at the moment we'll be spending a week at Antalya Airport :rolleyes:

carda

Hi Pinksprout, we were told by Med Hotels that their contract was with Freedom Direct and not us so the Agency law clause does not apply. Hays are supposed to be getting in touch with us today to tell us what Abta has decided regarding all existing bookings and as to whether we will have go through the credit card route to claim a refund. We rebooked our hotel with Med hotels so that our holiday was safe. Like you we had flights booked through another company. Med actually gave us a 10% discount which meant we got the hotel for less than the original price, unless of course we end up not getting the refund! I have notified our credit card company who have opened a dispute claim and are to send me the relevant form, just in case.

aldarcy

This has been a nightmare. No-one seems to know what is happening.
ABTA say "XYZ"
CAA say "ABC"
Finally today Hays have said that my flights are fine, and HOTELS4U have not been paid, and are keeping the reservation open. (Although not been paid)
On asking how long I had to get the cash together to pay for my hotel, the girl said 'as soon as possible'. She went away and asked if it was possible to pay a deposit, which was fine, and have 2 weeks to get the rest together.
She also stated that I should claim the accommodation money back from my CC, and I'm in the process of getting all the relevant paperwork printed/copied.
The local branch of my bank (HBOS) has said they try and get these disputes settled within 30 days. (fingers crossed)
Do I need a letter from ABTA/CAA?
Maybe someone can advise?

Cheers

caraboo

Hi

My dad has booked a holiday due to fly wed. He has been told flights ok but accomodation needs to be rebooked and paid for. Holiday was paid for by Maestro. He has holiday insurance - will this pay for cost of accomodation rebooked. Just wondering how he will be reimbursed.

Tmesis_2

I doubt the insurance will cover it but it's worth checking; most likely he'll need to claim from the CAA as it sounds like an ATOL-bonded booking. My understanding is you're only covered on a debit card if you paid for it out of an overdraft (as Consumer Credit Act then applies) but I may of course be completely wrong there.

caraboo

thanks for response. He is going with his sister (her first holiday in 20 years)

This is a very cr***y situtation.

Apples2

Why can you still go through and book holidays if these guys have gone to the wall????