Section 75 question

anticlaus105

I'm not well versed in how section 75 works. My basic understanding is that for anything between £100 and £30000, with any part paid on cc, makes the cc company jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader.

It seems currently cc companies are rejecting section 75 claims for supplier cancelled travel either outright or on the basis of vouchers being offered. I've also read of them telling people to try travel insurance first.

Are they legally allowed to do this and if so on what basis?

bris

It's all about breach of contract, they have the same rights as retailers so if the contract states they can do it and it's not against your consumer rights then they can. If you bought holiday insurance then you should claim on that first and then S75 for any shortfall you may have, thats why you bought it in the first place..

If however it is against your consumer rights which a lot are trying to flaunt then you do have S75 rights despite what they say and if they still refuse then the ombudsman will decide.

Nebulous2

This is going to take months if not years to resolve, with everyone trying to minimise their losses. My travel insurer has said I have a valid claim, but they want to see something in writing from my travel agent and credit card provider to show I have tried to claim through them. Eventually there will be a way through, but at the moment its all a thick fog.

anticlaus105

That's interesting about the holiday insurance. I discounted it as an option as cover is not quite enough to cover the full cancelled holiday amount and of course there is an excess. Can the amount underpaid be claimed on sec 75? What about the excess?

MEM62

There is an excess on most insurance coverage and travel insurance is no different.  The bank will advise you to claim off your travel insurance as that is what is for.  Banks will be reluctant to take liability for this when you have alternate coverage in place.  Section 75 really isn't the appropriate vehicle for this type of claim. 
I understand that the travel industry is lobbying hard to be allowed to issue vouchers instead of refunds but, as things stand now, unless their T's & C's allow it (which would not be the norm), they have to refund.  There is no obligation on you to accept vouchers.       

Tildaplum

Obviously there is a lot going on at the moment with so many people having their flights/holidays cancelled, but the bottom line is this.

If your flight is cancelled the airline have to refund you - you have12 months to apply so no need to hurry.

If your package holiday is cancelled the travel agent or whoever have to refund you and if they go bust then ATOL refund you.

If neither of these happen then your recourse is to the credit card. Unless the law changes, and provided the payment was within the £100-30,000 limits, then the must pay. Of course they will delay etc but the law is clear on this - they have equal liability. Obviously of course they will ask you to try the other avenues first eg travel insurance BUT YOU DON'T HAVE TO.

If they don't pay then put a complaint in to the card.

anticlaus105

Thanks all. I guess it will take some time. I just want to be sure where I really stand despite what I may be told. Do I have to divulge to a CC company if I have travel insurance in place?

Tildaplum

No but my advice is to work with them - realising these are difficult times - and see if the insurance will pay up first. 

You could as I said before go straight to the card and claim and complain etc but everyone is on new ground here so you might just want to work with them

born_again

A regular call at the moment this. And many people are going OTT and screaming at staff, that banks are not helping them to get their refunds.
It is not your banks responsibility. It maybe you consumer right to have this refund. Even S75 legals are saying NO to claims, as while the company's are offering vouchers, you can still request a refund from them. Your bank can not force them too refund and they will let any complaints go to FOS and let them make a judgement knowing this will take months.

But remember that if everyone took refunds, then odds on there will be NO travel co's let to provide a holiday later.
While a lot of people are struggling at the moment. Later this year they will all be moaning that they can't get their break oversea's.
So as Tildaplum said. Take your time, think what you want to do and let the travel co's sort out just when they maybe starting again. They will get round to everyone, just will take sometime.
Most people could be back at work by May. So any hardship might be short lived.

Stay safe, do not go out. And look forward to that holiday later this year

Tildaplum

excellent advice!

2e0arr

anticlaus105 buy travel insurance through your credit card  and pay for the holiday with your credit card. consider  the holiday company could be the next thomas cook so if you need to claim get it in as soon as possible.  They are in this business to make money so cover your money as best you can. You are right to prepare for the worse. If they are really busy their staff will have no time to be on this forum.