Lowcostholidays collapses – your rights as 140,000 hit by travel chaos

smituk

IA, yes, it seems that the merchant acquirer is responsible for the failure of Lowcostholidays and I am also confident that we should be refunded by the bank/card issuer eventually. We have already heard of many other customers being refunded through the chargeback scheme.

The banks/card issuers do not foot the bill for the refund/chargeback, it is the merchant acquirer. The paper states that "Merchant acquirers in the United Kingdom include
WorldPay, Barclaycard Merchant Services, Elavon, and Lloyds Bank
Cardnet."

What is important to note is that the Law Commission has highlighted the fact that card issuers need to do more to create awareness of the chargeback scheme. It is not a statutory scheme but it may well be made one eventually if customers keep losing out like this and are not successful with chargebacks.

rolyatniloc

Because of the Lowcostholiday scenario, we lost our booking for a hotel in Palma but should get the money back as it was booked on visa.
However I'd like to re-book at that hotel but as it may be at risk because Lowcostholidays have folded, should I book via expedia, hotel.com or booking.com or alternatively book it direct with the hotel as it has the cheapest rates online at present-its for a booking on 1st. October.
Any Advice as to the best least risky option?

leylandsunaddict

rolyatniloc wrote: »

Because of the Lowcostholiday scenario, we lost our booking for a hotel in Palma but should get the money back as it was booked on visa.
However I'd like to re-book at that hotel but as it may be at risk because Lowcostholidays have folded, should I book via expedia, hotel.com or booking.com or alternatively book it direct with the hotel as it has the cheapest rates online at present-its for a booking on 1st. October.
Any Advice as to the best least risky option?

What makes you think the hotel may be at risk because LCB has folded? Booking direct is always the best way IMO, and presumably as you're travelling independently your insurance policy will have the correct cover in case the hotel did become insolvent.

Alfiemini

SW17 wrote: »

Your booking will have been made through a division of Expedia called Expedia Affiilate Netwrok (EAN), Travelscape is one of their legal entity names. It's possible Expedia's direct consumer customer service agents don't have access to EAN systems. EAN are actually based in London, but their call centres are all over the place. The booking will probably have been "prepaid" by Virtual Credit Card, whether that stands will largely depend on whether the hotel has been able to charge the card yet. If not, EAN may well cancel the booking if they are owed money for other bookings by Low Cost, though I don't know their exact policy.

Did you ever get anywhere with this?
I'm the same, I have a hotel room booked with LCH through Expedia that is reserved but not paid for. I've tried in vain for over a week to contact Expedia and offer to pay for the room as having contacted the hotel directly they want to charge me an additional €1073 for the same room. They will not honor the rate and unless Expedia cancel the room they are fully booked.
My concern is that I go on holiday then Expedia either don't pay or cancel nearer the time (travel 5th September) and we have no room or a huge bill

IA-UK-2016

Brilliant story on mse about a successful chargeback case on debit card. Doesn't mention if it's visa or mastercard however that may not be relevant considering what's pointed out above that it is the merchant acquirer that has to settle these claims.

Hopefully this should set a precedent. One in the bag for TSB also for moving so quickly.

moneysavingexpert[dot] com/news/reclaim/2016/07/lowcostholidays-couples-1400-reclaim-success-thanks-to-mse---could-you-get-your-money-back-too

IA-UK-2016

According to this article from 2010 LCH merchant acquirer was Chase Paymentech (jp morgan), one of the largest credit card processors in US.


realwire[dot]com/releases/Retail-Systems-Awards-Chase-Paymentech-Card-And-Payments-Solution-Of-The-Year

meanderr

Good news RE : Info via your links...Thanks IA-UK-2016

hugo15

sueh2858 wrote: »

when I found out about Low Cost, I rang the hotel I've booked in Verona for September, and they confirmed the booking was still valid and paid for! I emailed them next day, and they've emailed back to confirm booking "is paid for"

I'm still dubious, but if I have an email confirming, then surely it's ok?

@sueh2858 did LCH make the booking with Expedia? Our hotel was booked by this route and it was indeed paid for. There is another comment in this this thread from someone else who is also being told that their booking is still ok. I am wondering if Expedia insisted on getting cash from LCH in advance of people staying? Maybe they had some insight into the LCH cash flow issues with LCH having overdue debts previously and therefore Expedia would only deal with them on terms that protected them.

whitewater_2

Update on my issue with Sainsburys.

They have admitted it was their fault, compensated me for this error and also informed me i will be refunded full cost i paid in 10 days maximum.

was also informed by the lady in customer relations that if my rebooking of same hotel cost more mastercard would cover that too under chargeback

glenwells

Hi
Like you I paid with Barclays Debit card 'VISA' signed. Logged a chargeback 10 days ago. I sent all the relevant paperwork 8 days ago. Had not heard back so made attempts to contact them. First attempt UK help desk - rather unhelpful person who was not interested and said nothing will happen for 6 to 8 weeks!
Third attempt I got some better information. What I was told is that Barlcays have made an official request for confirmation of the status of the finances with the Administrators. They did this a week ago and the Administrators have 28 days to respond - so up to another three weeks to wait. Once they hear back - as in the company have no money to pay anything meaningful to its creditors then Barlcays will decide if and how to compensate people. That could be all, some or none of the money paid. Realistically, if Barclays do not compensate people then I expect that they will see those people leave the bank for other 'safer' banks. There would be ZERO faith in ever using a Barclays debit card to buy anything again! finally, if other banking organisations have been compensating people it would be bad business not to do so. Unfortunately that means it is a bit of a wating game at the moment.
Barlcays have paid out on Chargeback requests for insolvent companies in the recent past so a precedent is there.
After speaking to the advisor Decided to still go to Crete in two weeks time. However, our 5* all inc is now 2* B&B but hey the sun will be shining.
Would dearly love a 5 minute 'chat' with Paul Evans he would not forget the 'conversation'it for a long time.
best of luck
GW