Government to back the travel industry refund voucher scheme

Browntoa

Likely to be agreed by the weekend.

Government to the pay the vouchers in the event the company fails , £4 billion bailout

https://www.cityam.com/coronavirus-travel-industry-in-line-for-4bn-support-package/

bagand96

Not really sure this should come as a surprise to anyone.  Whilst the Government seems unwilling to directly give companies help or bailouts, a policy change around refunds and underwriting that always seemed likely to give the travel industry some breathing space and support.

Browntoa

I agree , and also prevents a follow effect on the travel insurance and credit card companies . It's killed dead any chance of making claims.

Also allows them to strike out the flood of small claims .

Life__Goes__On

With package holidays I feel the Government has little choice while it still have to follow EU rules.
Under the EU PTD2: "travel agents must provide security for the refund of payments made if the travel agent's business fails and falls into insolvency"

If the Government has failed to enforce this EU rule, then I expect the Government will be held libel.

Alan_Bowen

I think we need to wait and see exactly what the government is offering. The law says customers of packages are entitled to full refunds in 14 days and ABTA asked for the government to change that simply because the money isn't available to refund. I suspect that rule isn't going to change, even though many European governments have acted and changed the rules to avoid mass failures but what they will do is say that Refund Credit Notes issued by any ATOL holder will have the backing of the ATOL scheme in the same way that the original holiday did. What they won't do is force people to take the Credit Notes if they don't want them

Life__Goes__On

I see a battle coming up
Package Travel Directive ("PTD 2")  was from the EU and member states were told to put into National law.
Now some member States have changed their rules.
EU rules usurp Nation rules

Browntoa

Court case.

" I wish to get back my cash "

Travel legal team " customer given government backed voucher with option to get cash " 

Judge " case dismissed" 

Legal system can decide to "strike out" similar cases en masse

I really don't see how people can force a cash refund by refusing a voucher or threatening legal action. 

Butts

If this does happen I think consumers should be given the option of cancelling holidays without any penalty in return.

Life__Goes__On

EU Court (still higher than the Supreme Court)  Lower ruling breaks EU law,  ruling overturned.

Browntoa

Good luck with that.

8 years after you got your voucher the EU courts finally  make a decision.

UK no longer in the EU

Life__Goes__On

Browntoa said:

Good luck with that.

8 years after you got your voucher the EU courts finally  make a decision.

UK no longer in the EU

The UK is still bound by them, same as any ongoing cases.
I agree the  Government of the time could refuse to follow them and deal with any repercussions