Hotel I've booked ceased trading

Mrssarahr

Hello - just got a letter from a hotel I've booked for a wedding next month has ceased trading and the business is in the hands of the official receiver. The letter reads as follows.

Dear sir/madam

I am writing to inform you that the hotel has ceased trading. The business is in the hands of the official receiver. A list of all creditors including yourself has been forward to the receiver and you should hear from them at some point.

I apologise for the inconvenience

I paid in full when I booked it was £85 and I used my Natwest bank visa debit.

Any of you know where I stand in getting back my money. I understand things like this happen but just my luck it's me. I can't get another hotel as everywhere is booked now as its such short notice.

Thanks

Buzby

Visa will most likely recompense you (your bank will do this for you). Forward the letter to them, and ask nicely!

Mrssarahr

Thanks - I was not sure as it was not a credit card so thought the worst.

fallen121

As I see it, you have two problems, finding somewhere else to stay and getting your money back.

First of all, the wedding is still going on and you need somewhere to stay. No way will this be sorted out before then, so you need to decide if you will be going to the wedding after all or if you just can't find or afford anywhere and won't be going. I am presuming of course, that you are not the groom, best man or one of the ushers!

You will have to stump up the cost of a second hotel room and by the sounds of it will either have to stay further away and pay for a taxi, look for a b&b, or ring round and hope for cancellation somewhere. No-one is going to pay or help you with this. If you can't afford it or can't be bothered with the hassle, don't go to the wedding.

Next time you book a hotel room, either find somewhere where you can pay a deposit and settle the balance on departure, or if you have to pay in full, use a credit card. This gives you protection if this kind of thing happens.

Using a debit card gives you about the same amount of protection as cash. Basically you are stuffed. As an unsecured creditor, if there is any money left after accountants and banks have had their cut, after a couple of years you might get at best 10% of your £85 back but don't bank on it.

Sorry to sound harsh, but if whatever you're buying, if loss, breakage or cancellation is likely to cause you pain, use a credit card.

The above poster seems to think that Visa will reimburse you, but in my experience Visa is merely the money transmission method. Credit and debit cards afford the buyer different levels of protection.

While credit card purchases are protected under Section 75 of the Consumer Credit Act, debit card purchases don’t qualify for this protection simply because they don’t form part of a credit agreement. You have some level of protection via chargeback, but if the seller has ceased trading that can't be effectively enforced.

Mrssarahr

Thanks for that. It's driving distance away (50 miles) so one of us will just have to drive. It's just been a swine that its happened. To be honest I'd looked at the hotel and its been trading donkeys years so thought I'd be ok. They did have a deposit scheme but again I just didn't think. I had a fleeting suspicion I'd get 10% back as I remember seeing a program on the tv. I've tried to avoid a credit card and have done so far but might have to look at one for the future. It's my own stupid fault. Grrrr

zzzLazyDaisy

You may be able to get a chargeback on a visa debit card

http://www.which.co.uk/consumer-rights/problem/how-do-i-use-chargeback/

One of the situations where this applies is where a company ceases trading. However the value of the goods/services must be less than £100

agrinnall

fallen121 wrote: »

Next time you book a hotel room, either find somewhere where you can pay a deposit and settle the balance on departure, or if you have to pay in full, use a credit card. This gives you protection if this kind of thing happens.

.

No difference between debit and credit card in this case as the cost was under £100 so no S75 protection.

zzzLazyDaisy wrote: »

You may be able to get a chargeback on a visa debit card

http://www.which.co.uk/consumer-rights/problem/how-do-i-use-chargeback/

One of the situations where this applies is where a company ceases trading. However the value of the goods/services must be less than £100

While the Which link does indeed say that the cost must be less than £100, I'm not sure that it's right. We often see people on here (dalesrider for one) recommending chargeback for all sorts of values, and MSE's own chargeback guide says there is no limit other than a £10 minimum for Mastercard. I have no personal experience of it but from what I can see it looks like Which have got it wrong.

http://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback

Mrssarahr

I called Natwest who gave me a number to call on Monday so I will try it. I'm just pleased I didn't go for the deluxe room lol.

antrobus

agrinnall wrote: »

...While the Which link does indeed say that the cost must be less than £100, I'm not sure that it's right....

I knows it ain't right.:) I've once got a chargeback done for £300.

Mrssarahr

If the company has ceased trading tho likely hood is I've lost the money though as I imagine the money won't be there to claim back.

MamaMoo_2

You should be able to do a chargeback, no problem. As they haven't been fully wound up and debts are still being settled, they will most likely still have an open bank account, which Visa can use to do a chargeback. The company have no grounds to challenge the chargeback, so you should be fine.
I have done a Visa chargeback for a £70 item when a business ceased trading and had no problems whatsoever