Monarch Airlines stops trading - latest info and your rights

Gloomendoom

catwoman73 wrote: »

A chargeback isn't necessarily going to be successful when the company involved has gone bust.

I wondered about that- my understanding of the 'chargeback' procedure was that the credit cards take back money from the supplier, but if the supplier is insolvent, is there any money to take back?

As I understand it, the chargeback funds come from the middleman that originally facilitated the transaction, not the insolvent company.

They then have to try and recover the money from the insolvent company's administrators.

Biloblue

I bought flights for my parents as a 60th birthday gift for them to go on holiday. My section 75 claim has been rejected, as my Credit Card supplier states there needs to be a direct between the debtor (me), the creditor (bank) and the supplier (the merchant)

They’ve said as the flights are in my parents name that they have entered into the contract and that I didn’t receive benefit of the service of goods and therefore there was a break in the chain.

Surely this is wrong as I have paid for the flights and I am benefitting in giving them as a birthday gift? I am now out of pocket as I have to pay for two new flights? I was also the one who entered a contract with Monarch to supply flights regardless of who will be sat in the seats on the plane!!

What are my Options here now? Can I appeal this? I am disgusted!

richardw

Biloblue wrote: »

I bought flights for my parents as a 60th birthday gift for them to go on holiday. My section 75 claim has been rejected, as my Credit Card supplier states there needs to be a direct between the debtor (me), the creditor (bank) and the supplier (the merchant)

They’ve said as the flights are in my parents name that they have entered into the contract and that I didn’t receive benefit of the service of goods and therefore there was a break in the chain.

Surely this is wrong as I have paid for the flights and I am benefitting in giving them as a birthday gift? I am now out of pocket as I have to pay for two new flights? I was also the one who entered a contract with Monarch to supply flights regardless of who will be sat in the seats on the plane!!...

I think a contract needs 'consideration', your parents didn't pay, so is there a contract ?

N4t4lie

Biloblue wrote: »

I bought flights for my parents as a 60th birthday gift for them to go on holiday. My section 75 claim has been rejected, as my Credit Card supplier states there needs to be a direct between the debtor (me), the creditor (bank) and the supplier (the merchant)

They’ve said as the flights are in my parents name that they have entered into the contract and that I didn’t receive benefit of the service of goods and therefore there was a break in the chain.

Surely this is wrong as I have paid for the flights and I am benefitting in giving them as a birthday gift? I am now out of pocket as I have to pay for two new flights? I was also the one who entered a contract with Monarch to supply flights regardless of who will be sat in the seats on the plane!!

What are my Options here now? Can I appeal this? I am disgusted!

Two ways to approach this:
1) Get that in writing and go to the Ombudsmen for an adjudication or maybe just call them for some advice as sadly they may be correct.
2) Initiate a chargeback as there does not need to be a contracted link between you and the supplier and should still get you a refund.

Hope that helps.

Biloblue

Thanks,

The letter states they’ll attempt a chargeback - how does that work out if Monarch have gone bust?

I dont understand that about them having contract either as they didn’t pay for them nor know about it until after the flights were booked and given as a gift.



My wife didn’t receive the benefit of the goods as she had to then purchase another gift... which was meant to be the benefit she paid for!

Biloblue

Last thing... the flights came to £500 - can the full amount come from chargeback?

N4t4lie

catwoman73 wrote: »

A chargeback isn't necessarily going to be successful when the company involved has gone bust.

I wondered about that- my understanding of the 'chargeback' procedure was that the credit cards take back money from the supplier, but if the supplier is insolvent, is there any money to take back?

Where do the credit cards sit in the pecking order of creditors in this case? Will the credit card companies end up bearing a large portion of the losses due to Monarch's failure by paying out for refunds whether via S75 or chargebacks where it can't recover the money from Monarch?

When a company goes into administration (put very simply) the accountants wind it up and sell as many assets as it can to pay secure creditors. Chargebacks would appear to be very high up the list for repayment, they are definitely further up the order than anyone who needs to go to the administrator as an unsecured creditor. When both Comet and Low Cost went under a lot of the claims made were via chargeback and were paid with no issue. It's a very complicated process, the repayments can come with a caveat that they can be reclaimed within 100 days if the merchant disputes it, that is something to be aware of, but it shouldn't happen and if it does, make a complaint to the bank as it seems to be an error they can make (saw it a lot with Low Cost customers last year, but as far as I am aware no money was ever taken back).

Monarch was not bankrupt and has assets to sell. Low Cost Holidays had non of this and yet the majority of customers got a full refund if they had paid on a card or by Paypal (within 180 days).

N4t4lie

Biloblue wrote: »

Thanks,

The letter states they’ll attempt a chargeback - how does that work out if Monarch have gone bust?

I dont understand that about them having contract either as they didn’t pay for them nor know about it until after the flights were booked and given as a gift.



My wife didn’t receive the benefit of the goods as she had to then purchase another gift... which was meant to be the benefit she paid for!

They will make a claim to Monarch's Bank who is basically a secured creditor (it's very hard to understand I find so you have to take some of it on trust), but be assured you will get a refund. Like Comet and Low Cost customers who also thought that they had lost their money many of us were quite delighted that we could get a refund.

Gertrude17

I wonder if you could help me, we were supposed to fly back from Malaga to Gatwick on 11th October at 11.50am, we checked on CAA website and our flight was changed to 19.20hrs in the evening, we had a connecting flight from Gatwick to Newquay that evening at 20.10hrs so we missed our connecting flight and had to stay overnight at Gatwick, we paid for a room and had to pay for another flight the next morning on the 12th October which left at 9.30am, what is the best way to get a refund? we booked through direct line flights for the monarch flight and we have an Atol Certificate, but we booked through flybe for our Newquay flight. We have insurance through Staysure and paid extra for (Connecting flight cover) I am not sure how to go about claiming. The problem is that we paid for our flights when we had a bank account that we no longer have and have no details of our old account so I don't think that our old bank will help us with it if I tried to claim through the chargeback form.

N4t4lie

Gertrude17 wrote: »

I wonder if you could help me, we were supposed to fly back from Malaga to Gatwick on 11th October at 11.50am, we checked on CAA website and our flight was changed to 19.20hrs in the evening, we had a connecting flight from Gatwick to Newquay that evening at 20.10hrs so we missed our connecting flight and had to stay overnight at Gatwick, we paid for a room and had to pay for another flight the next morning on the 12th October which left at 9.30am, what is the best way to get a refund? we booked through direct line flights for the monarch flight and we have an Atol Certificate, but we booked through flybe for our Newquay flight. We have insurance through Staysure and paid extra for (Connecting flight cover) I am not sure how to go about claiming. The problem is that we paid for our flights when we had a bank account that we no longer have and have no details of our old account so I don't think that our old bank will help us with it if I tried to claim through the chargeback form.

Sounds like that is one for the insurance company to sort. I doubt the bank would help as it isn't straight forward and Flybe are still trading and it wasn't their fault that you couldn't take their flight. Make a written account of what happened and provide records of the original flights and new flights (including the Monarch ones) and receipts for expenses and I am sure they will pay out (less any excess if you have one). Sounds like you are covered, but familiarise yourself with the small print and clauses as often it is vague and open to interpretation.