Consequential loss?

k1985

Last year I woke on the day I was due to fly out to Turkey to find that Goldtrail had gone bust at 6pm the night before and I had no flights.

I had booked flights from plymouth to gatwick and vice versa as means of transport to the airport.

Due to the collapse of goldtrail, flights from the UK were few and far between, and on the morning of me leaving (minutes after finding out they had gone bust and that the travel co couldn't offer me a flight) I booked flights from bristol to turkey rather than lose the money we had paid for accomodation.

Upon my return, I got the money back for the original flights from the CAA. My travel insurance (provided through my Barclays Premier account) said that they did not cover companies going bust, so I contacted my Credit card provider to instigate a S75 of the CCA claim. Bear in mind this started back in august and is still ongoing.
I had hoped that as I had paid about £500 on the credit card to the travel agent (tailor made holiday, not package) that I would be covered for consequential loss.

So, the losses I incurred are for:

Flights plymouth to gatwick and vice versa
The cost of a taxi to get us to bristol airport at short notice
The cost of a hire car for us to get home after the holiday.

The CC company have informed me that these are NOT consequential losses, as they weren't unforeseen circumstances... How was I to foresee goldtrail going bust? And surely me losing the costs of the above are a consequence of the failure of goldtrail?

The lady at the CC co disputes department has been very helpful, but their legal team is basically saying no, get stuffed - despite her telling me that bother her, and the legal team, think I am in the right and they would have done the same.

I have contacted the financial ombudsman who have in turn been in touch with the Credit Card co, and they have sent me a letter acknowledging the complaint.


To you seasoned pros, does it seem I have a reasonable claim?

k1985

Anyone??? Could do with some help on this - just about to open the official complaint with the Ombudsman.

Surely I shouldn't have to suck up all the extra costs as a result of Goldtrail going bust?

nomoneytoday

AFAIK (as a none expert) the section 75 will cover the holiday company going bust, and put you back in the start position.
i.e. you spend £X on the holiday, they eventually refund £X

However, the additional taxies and hire cars wouldn't be covered with the Section 75, but by your Travel Insurance, if that's agreed between you and them when you took out their policy.

YorkshireBoy

I fear you're on to a loser with this one...

You’re usually unlikely to be covered when payments are made to a company that isn’t the one providing you with the good or service because the credit card company must have a direct relationship for them to be equally liable.

http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases#exceptions

Where customers use a credit card to buy airline or other travel tickets from a travel agent, they cannot normally claim against the travel agent if the airline delays or cancels the flight. This is because the travel agent contracted to supply the ticket, not the flight. So the customer would not have a claim under section 75 either.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm