Globespan

stenjue

Has anyone ever tired to claim for a delayed flight from Globe span? I know the company is no longer trading but wondered if any one has made a claim through their credit card
under section 75 rule. P S I am new to this forum thingy

Alan_Bowen

There is no claim against the credit card companies for claims under EU261, it is the airline or nothing

CobyBenson

Alan,

With respect, that's not the case at all.

If stenjue booked by credit card then he can indeed claim against the CC company.

It is the CC company that will pay out so it does not matter if the airline is no longer trading.

stenjue

Thanks Alan, I will contact my cc company and take it from there. Fingers crossed.

Vauban

I'd be interested to know how easy it is to persuade a CC company to accept liability. I had understood that it is quite difficult. Have there been many instances of the CC companies paying up in these circumstances? And if the CC provider is indeed jointly liable for a 261/04 payment, is that liability live even if the airline is trading?

Alan_Bowen

I would be amazed to see any bank pick up a claim when there wasn't a valid claim against the carrier when it ceased to trade in 2009. Globespan failed at least partly because of alleged fraud by their own credit card processors but when they did fail EU261 did not give rise to claims for delays. Without a claim at the point of liquidation or the Scottish equivalent, I would tend to side with the banks and reject the claims. There would be thousands against Globespan as their last two years of trading were a disaster from an operational point of view. Perhaps a no-win no fee business might take a punt at making the banks pay out?

CobyBenson

Alan,

You're right in that the CC company won't have to pick up the tab if the airline isn't (or wouldn't have been) liable under 261.

Conversely, they are liable (because of Section 75 of the Consumer Credit Act 1974) if the airline is liable.

The difficulty CC companies have is that the burden of proving the Article 5(3) defence is on them. It's difficult (impossible?) for them to defend a claim when the airline has ceased trading, because they won't have any evidence to rely upon.

Because of this extremely onerous law you can thank Section 75 for the high credit card charges we all pay.

Mark2spark

But there doesn't appear to have been a successful claim against a CC company on here yet.
I'm not saying it's impossible, but be prepared for a lot of too-ing and fro-ing IMO.

Vauban

Mark2spark wrote: »

But there doesn't appear to have been a successful claim against a CC company on here yet.
I'm not saying it's impossible, but be prepared for a lot of too-ing and fro-ing IMO.

I think I read of one case where the CC company agreed to pay up - but it was small sums and they did not accept liability. I'm not a lawyer, but I wonder whether this will really stack up ...

Mark2spark

Oh, I've had a successful s.75 claim against a CC co, for a holiday Co - Xcape with us - who went bust. We booked accomodation with them and they went bust before we'd actually travelled, and although they had been paid in full, they hadn't paid anything to the hotel.
But that's different to a 261 claim. The CC Co's are jointly and severally liable for a purchased product that is not supplied. But as a delayed flight is actually supplied, I think a test case could be on the cards.

Vauban

Mark2spark wrote: »

Oh, I've had a successful s.75 claim against a CC co, for a holiday Co - Xcape with us - who went bust. We booked accomodation with them and they went bust before we'd actually travelled, and although they had been paid in full, they hadn't paid anything to the hotel.
But that's different to a 261 claim. The CC Co's are jointly and severally liable for a purchased product that is not supplied. But as a delayed flight is actually supplied, I think a test case could be on the cards.

Yes - I think that's the key point. That the product has been provided. I suppose a lawyer might argue that there has been a "breach of contract" by the failure to provide statutory compensation for the delay incurred, but I'm not sure that would hold water ...

That said - I am not a lawyer, so what do I know really? This is all loose bar-room talk