Should I pay the balance?

MernLeezzi3

I booked a cruise with Newmarket Holidays leaving on 1 November 2020 and paid deposit of £450 in June 2019. The Balance is now due and just before I went to pay it, I discovered that Cruise & Maritime Voyages have gone into administration and that all cruises have been cancelled. I have tried getting in touch with Newmarket Holidays, but no joy yet.
 My difficulty is that if I don't pay the balance by 27th July, then I would lose my deposit. I paid the deposit with my credit card last year; I am also insured for cancellation of holiday. What should I do? Pay the balance, or risk losing the deposit?

Streaky_Bacon

If you are sure that the cruise is not going ahead, then I would not personally pay the balance, which may be tied up for many months.

If the cruise never goes ahead then they will not be entitled to keep your deposit, regardless of what the contract says.

I would suggest writing to Newmarket Holidays, explain that you understand that the cruise is cancelled, and request your deposit back.

As you paid on credit card, I would also suggest that you contact your card provider and begin a chargeback and also a s75 claim. Provide them with as much information as you can to show that the cruise has been cancelled.

Some initial information on s75 and chargebacks can be found here:

https://www.legalombudsman.org.uk/wp-content/uploads/2014/09/Guide-making-section-75.pdf