Section 75 refund for consequential losses

Sues48

I have written a separate thread in the travel section of the forum, https://forums.moneysavingexpert.com/discussion/4044543, about our problems with American Airlines cancelling our flight on 29.6.12, they have offered us $3600 in travel vouchers as compensation which we will probably accept as it is much more than the cash compensation of 1800 euros which we are legally entitled. However, we were considerably out of pocket as a result of the cancellation and subsequent re booking 24 hours later. As the tickets were booked and paid for using my Barclaycard it has been suggested that I may be able to claim for the consequential losses incurred from Barclaycard.

It isn't that we are being greedy and appreciate that AA's offer is a generous one,(although we have yet to receive said vouchers), but we had to shell out about another £600 on top of an already expensive holiday as a result of their cancellation.

Do you think it is worth a claim to Barclaycard, or do you think it would be a waste of time? Our travel insurance won't pay up as it only covered delays once passengers have checked in and we were notified of the cancellation before we left for the airport, and in any case the max amount they would have paid is £60 per person.

aveylee

Probably not of you accept the $3,600. While barclaycard are jointly and severally liable, there is a legal principle that only one action can be pursued for any one cause of action (i.e. you can't kep suing someone based on a single problem)
.
Barclaycard may well argue that by accepting the original offer of $3,600 you accepted a full and final settlement of your cause of action, thereby extinguishing any 'joint' cause of action against Barclaycard.

Your options are to:
(a) accept AA's offer,
(b) proceed against Barclaycard under S.75 (Easier to sue and obtain payment from than a US based company) for what you believe is the full value of your losses.

However compensation for cancelled flights can be restricted by T&C's, the Montreal Convention, whether you fully mitigated your lossed and so on.

Then again the worst Barclaycard could do is say no.

mo786uk

I agree with the above i nthat if you accept AA offer you might be shafted with Barclaycard

I theory you cna only sue BC when you can sue AA. If you accept AAoffer then you are accpeting settlement IMO and possibly lsoe the right to sue

you will then have a risky choice of not accepting AA offer and suing them - which you may have a good case to do anyway

arcon5

Your losses are $600 and you are accepting a compensation package of $3600 ($1800 more than required).... And your not being greedy by wanting to go further and get even more money?

There's just no pleasing some!!

Hintza

Why isn't your travel insurance kicking in?

Sues48

arcon5 wrote: »

Your losses are $600 and you are accepting a compensation package of $3600 ($1800 more than required).... And your not being greedy by wanting to go further and get even more money?

There's just no pleasing some!!

I can understand what you are saying, but we haven't decided definitely to accept them, as I said in my original post, they haven't actually arrived yet. I wouldn't have thought about claiming from Barclaycard until someone on my original thread suggested this may be possible. At this stage I am just looking at my options.

Sues48

Hintza wrote: »

Why isn't your travel insurance kicking in?

The travel insurance only covers for delays which occur after check in, also they require written evidence from the airline as to the reason for the delay which AA are refusing to provide.

Equaliser123

No you can't pursue your CC company. They are jointly and severally liable under s.75. They are not liable for additional amounts.

Therefore, if you settle with the airline, you are settling the cause of action.

arcon5

What other losses have you incurred?

If all the law entitles you to is $1800 then why do you think you are entitled to more... especially if your loss is just $600...

I hope we're missing something here to justify you wanting to cash in further:eek:

Sues48

arcon5 wrote: »

What other losses have you incurred?

If all the law entitles you to is $1800 then why do you think you are entitled to more... especially if your loss is just $600...

I hope we're missing something here to justify you wanting to cash in further:eek:

No, you are misunderstanding, AA have refused our claim for cash compensation which we are entitled to under EU regulations and offered us the flight vouchers instead. What I was wanting to know was, if we refused the vouchers and they still wouldn't play ball with the cash compensation, would be be able to claim from Barclaycard. It would seem not, so we will just have to persist with chasing AA.