Flight delay and cancellation compensation, Thomas Cook ONLY

JPears

Unfortunately the airlines will pay the least possible amount. Interest is only payable if a Judge applies it at judgment. The exchange rate date is arguable but what recourse do you have? Any judge would look unfavourable on starting or continuing a Small Claims case, if the only issue were interest and/or exchange rate.
My own personal view is that the exchange rate should be that at the time of the incident. Why? Because the regs state, under the denied boarding section, that compensation is payable IMMEDIATELY, therefore determining the exchange rate.
I wonder if anyone has ever received immediate Reg261/2004 compensation for denied boarding?

sging1

Hoyerman wrote: »

Hi there,

I have today (finally) received an offer of £1280 from TC in relation to my post #2877 - but I am trying to work out if this is correct as the email uses the phrase "full and final settlement". Basically I just want to make sure that the amount is correct before accepting.

TC are using the exchange rate of 3/12/14 to calculate the amount and have a policy of not paying interest on any claim - is this legally correct?

My delay was on 17/06/12 and original claim submitted in July 2012 but refused several times and reopened. My personal understanding was that the compensation should be based on the exchange rate on the date of the delay, plus interest from the delay date to the payment date (not sure what rate would apply - can anyone help?)

I have had a telephone conversation with TC where they confirmed that they only take the date of the most recent case submission (even though its the same case number) and do not pay interest. I have told them I will query this in writing with them to clarify their calculation of the payment before I accept.

Can anyone advise further about how compensation SHOULD be calculated?

thanks
H

Yes you are right it should be the date of the delay to work out the exchange rate.
As far as intrest is concerned you would get between 4-8% if it went to court and they do pay intrest read this post on the Court Success thread: http://forums.moneysavingexpert.com/showpost.php?p=67174978&postcount=451

Regards
Stephen

Vauban

sging1 wrote: »

Yes you are right it should be the date of the delay to work out the exchange rate.

As JP says, there's quite a debate about this. What evidence have you got Stephen to substantiate the above?

Skid_Marks

Vauban wrote: »

As JP says, there's quite a debate about this.

Bott & Co appear to request payment in euros or alternatvely the Sterling equivalent at the rate on the date that they submit the initial claim to the Airline, as per Bank of England exchange rate on that day.

Vauban

Yes. The CPR (the Court's rulebook) says to use the rate for the date of the claim, but that default judgements should be paid at the rate of the day of the judgement. I'd be interested if anyone has anything to justify (in law) using the rate of the day of the delay.

MGOR

In my case with Thomson they used the exchange rate at the date of settlement. It was substantially in their favour. I decided against pursuing the matter. I suspect the answer will over the coming years be whatever rate favours the airlines. If there's a major change in the rate back to what it was 3 years ago then no doubt they will use the date of delay if it's now as the rate rather then the date of settlement! One to watch to see if the policy changes or if it's a consistent approach in the future.

sging1

Vauban wrote: »

As JP says, there's quite a debate about this. What evidence have you got Stephen to substantiate the above?

My claim has been going on a while now but somewhere along the line I came across it. However my case is going to court on the 13th January for the second and hopefully final hearing as Thomas Cook has totally blanked several communications, they are just ignoring everything. I was just reading their original defence dated April 2013 and they state;

"Should liability attach, which is denied, it is averred that the applicable amount per passenger is 600 euros. It is averred that the Claimants claim be limited to the sterling equivalent calculated using the historic exchange rate on the day of the affected flight."

And it goes on to say for those being told that Thomas Cook don't pay interest;

"It is admitted that the Claimant would be entitled to interest on the monies awarded by the court; however, no admissions are made as to the applicable rate or duration thereof"

So there it is in writing from Thomas Cook.

I have given it to the very last minute to compromise a settlement but their ignorance is hopefully going to cost them, as I am now going after full costs for them being unreasonable. My bundle will be with the court within days and there is no going back I have already booked my second day off work which now part of my claim.

Regards
Stephen

Vauban

That's very interesting Stephen - thanks for sharing. I'm sure MGOR is right that they'll try to use whatever rate suits them best! But I can't find anything to justify using the exchange rate on the date of delay.

Good luck with your case - I hope you get your day in court, but I bet they settle at the last moment.

sging1

You all probably know this but if you want to try and push for the exchange rate on the day of your delay and want to know what it is, this is what I use.
http://www.exchangerates.org.uk/GBP-EUR-16_12_2011-exchange-rate-history.html

Hoyerman

I've actually worked our the difference for my case (based on the Euro exchange rate on the day of the delay (17/6/12), plus 8% interest - taken from Citizens Advice as standard court rate of interest)

Difference in compensation amount from TC offer is £15.80.

But - Interest based on my amount is £0.28 per day for 928 days (so far) so £259.84 and counting...

So - not an insubstantial total amount of money.

TC want to use the exchange rate on the day the claim was last examined by them (3/12/14) and have stated on the phone that they dont pay interest. Citizens Advice have advised that I have a reasonable claim for "loss of earnings".

I have emailed TC to ask for their detailed workings in how they arrive at their offer figure, plus copies of any company policies and their legal justification for (a) the exchange rate used and (b) why they don't pay interest.

It would be interesting to find if there were any publicly available judgments which might support a consistent approach for everyone?

Genuinely I don't mind what my total compensation works out to be - but I do want it to be correct and fair? There needs to be consistency in the exchange rates applied and then whether or not interest is payable - and if so, at what rate.

Is there any advice from CAA/ATOL on this? I can't find any so far?

Cheers
H