I shouldn't pay the balance for a holiday that's not going to happen....or should I?

frankiethemonkey

Hi, this is my first time posting, so bear with me; I am at my wits end!
We paid a large deposit on a holiday in January, to a tiny travel company, for a holiday due to begin in late June.
The balance is due in May.  I've contacted the company and explained that we want to cancel our holiday due to all the uncertainty surrounding covid-19, including (but not limited to!) the indefinite ban on all but essential travel (the holiday company is in the UK but the property itself is in Spain). 

The travel company has flat-out refused us a refund of the deposit (paid by BACS as that was the only payment method extended to me-I can't initiate a chargeback).  They've said that-
1. the balance due date remains the same.  We will be able to re-schedule our holiday (which we DON'T want to do, and I have read on the CMA website, we don't have to agree to!), but ONLY if we pay the balance in full first, AND after we pay the balance, we first wait it out to see if restrictions on travel might lift by the end of June.
2. if we do not pay the balance they will consider it a "voluntary" cancellation, and have said that I probably won't be able to make a claim on my travel disruption insurance (which thankfully I do have in place).

I feel like I'm being twisted in knots here, and basically being strongarmed into paying the balance OR "voluntarily" forfeiting my deposit. I have contacted my travel insurance and am awaiting a call back.  I am worried that if I "voluntarily" cancel this holiday by not paying the balance, I won't be able to make a claim, despite the current indefinite travel restrictions currently in place.   On a more general note, I'm very annoyed that this company is giving us such a hard time and not understanding the severity of the situation.  In our email correspondence, they have been downplaying the pandemic as much ado about nothing and they don't see what the big deal is.  Is anyone else in a similar situation to me?  Any ideas? Thank you!

vitaweat

AIUI you need to pay for the holiday first and then claim back the full amount.  Sorry if that isn't the answer you wanted.  It does seem a bit daft.

frankiethemonkey

At this point, I will take any answer I can get, and I do agree, it seems ridiculous but maybe that's the only way to get out of this mess.  Thank you! 

bagand96

The problem at the moment is that you are trying to cancel the holiday, and therefore they are giving you the answer as per the T&Cs, which I expect is a loss of deposit.

You need to wait until THEY cancel the holiday.  Once the supplier cancels then you are entitled to a full refund.   The advice you have read on the CMA website will be for when the supplier cancels.

If you do not pay the balance then that will be considered a voluntary cancellation, so again loss of deposit.  If you pay the balance and keep the booking then if (when?) they have to cancel they will have to refund.

Only thing that makes me slightly nervous for you is the payment method.  This gives you a lot less protection should they become difficult down the line.  Who is the company in question?

frankiethemonkey

Thank you- yes this is exactly the quandary we are in.  It's the gamble of whether to pay the balance and hope the supplier is forced to cancel, or forfeit the deposit and walk away now.   My worry is that some form of lockdown might be lifted in the next few weeks and we'll then be expected to go on this holiday when we do not feel safe.  The one thing I am sure of, is that this company is going to do ANYTHING they can to avoid cancelling the holiday.  I won't go into too many details, but this is an expensive trip, involving multiple people from multiple households, all travelling from different areas of the world and converging on this house.  It feels crazy to be put in a position whereby, if some restrictions lift, and technically we can go, then we are faced with the dilemma of potentially compromising our own health because we can't claim any form of refund.  
And yes, Im worried that I paid by BACS, which is why I mentioned it, and why I am not keen to hand over any more money if the company doesn't allow me to pay by credit card, so that I have some small measure of protection.  I've never cancelled a holiday in my life, and of course now am feeling very naive, and I will certainly be a "once bitten twice shy" type of person going forward when it comes to holiday planning.  I am happy that I do have the coveted travel disruption insurance in place that nobody can get anymore, but I still believe that we are in too much of a gray area for me to win a claim.

frankiethemonkey

Just to update- I prefer not to give the name of the company as they are tiny and family run, and at this point do not want to name and shame.  

Life__Goes__On

Can you pay the balance on a credit card?

frankiethemonkey

I haven't asked yet.  Credit card was not offered to me as an option when I paid the deposit (as mentioned up-thread I didn't think much of this as I didn't envision this cancellation scenario back in January- a rookie error for sure).  I can't imagine agreeing to pay the balance via bacs now, knowing what I know have learned about Section 75.  
By the way, the company advertises this property on AirBnb with a full cancellation policy up to 14 days before arrival.  But they've been very clear that because we booked through their website, they will expect us to adhere to their non refundable terms.

Life__Goes__On

Personal advice only
I would pay the balance via credit card.
I don't think there is any chance of going on holiday in 8 weeks  For the last 6 weeks Spain have banned adults from taking a walk, that is only being lifted next week. 
So to go from that to fully holiday in 8 weeks I believe will be impossible
If they refuse a credit card, I would rethink my options.

gettingtheresometime

I would agree with LGO....I doubt very much anyone from outside Spain will be holidaying in Spain this year.

bagand96

Whilst I understand you may not want to name them, it was only so other forum members may be able to read over the T&Cs etc to maybe offer you some further advice.

You say it's a house, is that the only thing you have booked with this company? Or have you booked some sort of package including flights?  The reason I ask is that if all you have booked it a villa/house etc they could claim that the house is there and available to use, even though you may not be able or permitted to get there to use it.