Lastminute wanting £5k cancelation fee

Richddd

Any advice please.. We have checked also with Citizens Advice. 

My son has paid a deposit £500 for 14 university friends with Lastminute for flight/hotel in Spain, due 17th June. He is expected to pay the remainder by 30th May, but consensus is they want to cancel (and forfeit deposit). Lastminute have advised the cancellation cost is nearly £5000, which my son does not have nor is he likely to collect this from his friends. He is concerned Lastminute will take this money from his bank or the holiday balance, on the 30th. 

bradders1983

Do the terms and conditions back up their claim to ask for £5k this far in advance?

Richddd

The terms and conditions are very ambiguous and whilst state they can charge a cancellation fee, it isn’t clear how much. Citizens Advice has advised write to Lastminute for justification of the fee, but it appears they are quoting the full holiday amount as a cancellation fee

bradders1983

Right ok...how much was the holiday per person and how much was the deposit per person?

Life__Goes__On

Richddd said:

 He is concerned Lastminute will take this money from his bank or the holiday balance, on the 30th. 

Info below exudes any other legal advice of  non payment might involved
Your son can tell the bank that they are to refuse payment  this is a legal requirement as long as it given 1 working day before money is due out.
If the money is taken out, the bank must refund that traction and and fees involved, if there were any,
Also any adverse reference must not be entered on his credit record. 

bradders1983

The dates in the OP are confusing. When was he meant to be going away? On the 17th June?

Butts

If you don't want to go just make sure there is no money in the Account registered with them, or if a card change/replace it. I doubt you have a recurring payment authority so I doubt they could take it anyway (legally) without your consent/input.

If you are wavering and thinking of handing the balance over and holding out for a refund when the trip is cancelled just check Trust Pilot before doing so.

Richddd

Yes date for the week holiday for 14
of them... is leaving 17th June. And Lastminute extended time to pay balance until 30th May.

Also, I figured advising the bank not to pay would be his first action. Deal with situation after.

Life__Goes__On

As long as you are well clued up legally,  if you go down the route of not paying them I can't see how LM will get any more money back.
They will have to prove that the non-payment caused them a loss,but clearly the holiday will be cancelled so no loss.

If you know the flight details  you can keep a close eye on those.

bradders1983

I would assume then he is well past the period where he would only lose his deposit, most operators have a sliding scale whereby the nearer to the holiday he gets, the more it would cost to cancel.  Hence the figure of £5k.

In any case it probably gets cancelled before the 30th anyway

Richddd

They paid £40 deposit each (my son was managing with one payment) so £560 and the remainder/balance would be £370 each, so £5,180. Lastminute today quoted a cancellation fee of £5,120