Should I be able to reclaim the cost of this hotel under Section 75?

norserose

Hi,

A couple of weeks ago I booked a trip I need to make for work. I bought a return train ticket and a non refundable hotel, and these are usually costs that I would claim back from work.

HOWEVER the rail strike that is planned for next week if it goes ahead will mean that I can't travel. Whilst I know that they might resolve it and it might go ahead, I can't really wait to find out as I have childcare to arrange as it's half term so I really need to cancel the trip and rearrange for another time.

The train tickets I can get a refund on, I think, but the hotel was non-refundable so having read Martin's article it sounded like the hotel would be covered under Section 75 of the Consumer Credit Act as a consequential loss. Having just spoke to someone in Disputes at my credit card company I'm told that it isn't. I'm not sure if this is correct?

So now I'm in a really awkward situation; if the strike goes ahead I'm sure I can claim the balance from work. If the strike doesn't go ahead I might not find out until the night before and I just can't wait indefinitely to make childcare arrangements, but I doubt I can claim the hotel money back if there is no strike and I don't go. I also don't want to pay for 2 days childcare I might not end up using, as that's almost the same as the cost of the hotel again.

Any ideas what I should do? I'm particularly skint at the moment and really can't afford to lose over £100 because of a strike which may or may not happen.

norserose

And I doubt this is covered by travel insurance or anything similar?

[Deleted User]

Section 75 won't apply to the hotel, as they are still offering the room you have booked.

If you have travel insurance, you may be covered there.

But if you end up not going, I would simply claim it on expenses, as it's a work related expense and it's through no cause of your own that you can't go.

MEM62

firstly, if you are travelling in business then your employer should have travel insurance in place for you. Check the terms to see if you are covered under this.

Secondly, your employer should be aware that you cannot decide to go or not at a moments notice, therefore cancellation at this stage is your only option because of childcare arrangements. If your insurance policy does not cover this I would expect your employer to be understanding and cover the hotel cost.

Remember that this is a business expense, not a personal one. If you are expected to front up your own money for business expenses then your employer should accept any associated financial risk - not you.

bris

There has to be a breach of contract for S75 to work, in this case it's you who is breaching the contract not the hotel as it's still available to you. The hotel are not to blame for your travel problems.


Please also note that as said above even if it was subject to S75 you couldn't anyway as it's business related.

pjread

MEM62 wrote: »

firstly, if you are travelling in business then your employer should have travel insurance in place for you. Check the terms to see if you are covered under this.

Secondly, your employer should be aware that you cannot decide to go or not at a moments notice, therefore cancellation at this stage is your only option because of childcare arrangements. If your insurance policy does not cover this I would expect your employer to be understanding and cover the hotel cost.

Remember that this is a business expense, not a personal one. If you are expected to front up your own money for business expenses then your employer should accept any associated financial risk - not you.

100%, you're re-arranging as much to ensure you can make the business commitment (and avoid reputational damage?) as for any personal impact (e.g. childcare, which you're no doubt sorting for the new date(s))

Nick_C

If the train ticket is only valid on a specific day and cost more than £100, and you paid by credit card, then I believe you are covered. The hotel should be covered as a consequential loss.

I booked flights to Budapest a few years ago with Malev. I used by Halifax credit card for the flights. I also made a non refundable booking for the Budapest Hilton with my Hilton (Barclays) Visacard. Malev went bust, and I couldn't fly to Budapest. Halifax were in breach of contract and liable for consequential losses. They refunded the cost of the flight and the hotel, even though the hotel was paid for with a Barclay's card.

Nick_C

bris wrote: »

There has to be a breach of contract for S75 to work, in this case it's you who is breaching the contract not the hotel as it's still available to you. The hotel are not to blame for your travel problems.

If the breach of contract re the train travel is covered by S75, then so is the consequential loss. See my post above.

Nick_C

MEM62 wrote: »

Secondly, your employer should be aware that you cannot decide to go or not at a moments notice, therefore cancellation at this stage is your only option because of childcare arrangements. If your insurance policy does not cover this I would expect your employer to be understanding and cover the hotel cost.

I disagree. I would plan to go assuming that the train strike will be called off. If the strike goes ahead, then the cost of childcare should be claimed as a consequential loss, but only if S75 applies to the train ticket.

glentoran99

http://justice4.co.uk/martin-lewis-on-section-75/


Can I claim costs?

The law allows you to claim for ‘consequential losses’ arising from the problem. In other words, if what went wrong forced you to shell out, the credit card company is liable just like the retailer would be. Obviously it’s more difficult to do, but it’s still legal.
Here’s a success story to give you some inspiration…
Last year I purchased concert tickets for myself and a friend. The concert was postponed but while the tickets were still valid, I’d also spent £230 on train tickets and hotel accommodation.
I contacted the rail companies and the hotel to ask for a refund, only to be told they were non-refundable. So I contacted my credit card company quoting the Consumer Credit Act and asked for a refund.
This morning, to my surprise, I received a letter from my credit card company offering me a full refund of £230.

norserose

glentoran99 - that's the bit that I read that made me think that the hotel should count as an associated cost, so I was a bit :undecided when the card company said it didn't count. (Although I get that this is probably void if the strike doesn't go ahead!)

I have actually managed to get a full refund for the train so will talk to work and see about claiming for the hotel. I'm sure that they will probably honour the payment, but I just wanted to do as much as I could to claim it back so that they wouldn't be needlessly out of pocket.

(Selfishly, am almost hoping that the strike will go ahead now so that I have a leg to stand on!)