Globespan collapse

annoyed_traveller

I booked a flight with Globespan but luckily used my credit card. Used the template letter on this site (really brilliant help, thanks) to claim back my cash. Received a reply from Virgin credit card saying they will refund my money but ONLY on October 1st 2010 - the date I was due to fly. They do however say that if the firm goes into liquidation before then they will 'attempt to get my money back sooner'. My question is can they legally withhold my cash until then? How can people re-book flights with another company if the credit card people hang on to your money until the date you're due to travel? Can anyone shed any light on this?

The_Generals_Wife

Got the same message from Virgin Credit Card but Consumer Direct say not right, sent another letter requesting money refunded within 14 days, just waiting on their reply

jonesMUFCforever

It is a grey area - hoping another company buys what's left of Globespan.
I agree with the Generals wife - in fact you could send them a letter authorising them to debit your card back with the refund IF Globespan is rescued!

annoyed_traveller

Thanks to both of you for your input - I'm also going to write back to Virgin asking for my money - it just cannot be right that they can hold on to it until Oct 1.
Thanks again. much appreciated:T

Mattz_2

annoyed_traveller wrote: »

Thanks to both of you for your input - I'm also going to write back to Virgin asking for my money - it just cannot be right that they can hold on to it until Oct 1.
Thanks again. much appreciated:T

As with all issuers, Virgin are governed by card scheme rules on chargebacks, whether that be Visa or Mastercard. These rules can be very explicit in what an issuer can or can't do and if they do not follow the process correctly they can risk losing out on your claim if the acquirer defends citing any breach of rules. I know Mastercard definitely require issuers to wait until the date a cardholder is due to receive the goods or service. You may also need to provide evidence that you have attempted to contact the company to settle your claim, even if they have apparently gone bust. If you haven't, you again run the risk of the claim being rejected by the acquirer. Similarly you must exhaust any avenues available to you in terms of ATOL protection - have you tried claiming against the bond?

annoyed_traveller

As I only booked flights with Globespan I don't think ATOL cover this. There is a letter on the Globespan website placed by the administrators PWC which seems to be for people like me to download and send to the credit card issuer. I'm not hugely financially minded and when the average Ms Bloggs like me pays the credit card fee when booking things like this it would be nice to think that's an added assurance - but it's such a minefield. I can only send off this letter and hope Virgin respond. It was for a family holiday during school holidays, I'm lucky that we can book other flights in the meantime but I know of families who scrimped and scraped to book flights and seem to have lost the lot. It just seems very unfair.

saltire_girl

I had two flights booked directly with Globespan - one using a VISA card and one with a MASTERCARD and have now had money back for both even although I don't travel until June and October 2010.