Section 75 query - Virgin Flight tickets purchased by Virgin credit card

RandGP

I purchased tickets for Virgin Atlantic flights for Nov 2020 with a Virgin Atlantic Credit Card. The Virgin Atlantic credit card is operated and managed through Virgin Money. IF Virgin Atlantic goes into Administration (news today that they have filed for Bankruptcy protection) will Section 75 enable recovery of the cost of the tickets i.e. is it Virgin Money who the Section 75 claim would be against? If the Section 75 claim is against Virgin Atlantic - then I foresee problems in any possible Section 75 claim.

eskbanker

Section 75 acts to hold the card provider equally liable as the merchant, so when making a s75 claim you're doing so against the card company.

Sandtree

eskbanker said:

Section 75 acts to hold the card provider equally liable as the merchant, so when making a s75 claim you're doing so against the card company.

I think the OP is concerned that because both are "Virgin Atlantic" that S75 won't apply as it doesnt when creditor and merchant is the same entity (though this is as much for the pointlessness of the matter).

Whilst both carry the Virgin Atlantic branding they are not the same legal entity and therefore S75 will apply if VS go down

phillw

Sandtree said:
Whilst both carry the Virgin Atlantic branding they are not the same legal entity and therefore S75 will apply if VS go down

Right, not the same at all.

The Virgin Atlantic Credit Card is issued by Clydesdale Bank PLC (trading as Virgin Money). Registered in Scotland (Company No. SC001111). Registered Office: 30 St Vincent Place, Glasgow, G1 2HL. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Virgin Atlantic, a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited, is a British airline with its head office in Crawley, England.

[Deleted User]

Virgin Money would simply issue a chargeback against Virgin Atlantic. If Virgin Atlantic can't fulfil it then their bank is liable for the chargeback - this is unlikely to be Clydesdale Bank too.

Thrugelmir

Virgin is simply a brand name. Not a single legal entity. 

born_again

RandGP said:

I purchased tickets for Virgin Atlantic flights for Nov 2020 with a Virgin Atlantic Credit Card. The Virgin Atlantic credit card is operated and managed through Virgin Money. IF Virgin Atlantic goes into Administration (news today that they have filed for Bankruptcy protection) will Section 75 enable recovery of the cost of the tickets i.e. is it Virgin Money who the Section 75 claim would be against? If the Section 75 claim is against Virgin Atlantic - then I foresee problems in any possible Section 75 claim.

That is in America and is related to work they are doing in other countries to do a refinance deal with various partners. They have to do that in order to ensure any deal brokered elsewhere is passed.

RandGP

Thanks all. Great info and very reassuring 

born_again

You do not even need S75 anyway. A chargeback will do the job if they fold. And be a lot quicker.

Sandtree

born_again said:
That is in America and is related to work they are doing in other countries to do a refinance deal with various partners. They have to do that in order to ensure any deal brokered elsewhere is passed.

Technically its not to ensure any deal brokered elsewhere is passed but to prevent any creditor in the USA from being able to take pre-emptive action that could prevent the deal elsewhere from happening... its possible they get bankruptcy protection in the USA but still fail to strike a deal with their creditors and so fall into administration.

RandGP said:

very reassuring 

Its still very much brown trouser time for VS, this legal process just buys them time to do a deal but S75 would still protect you.

Whilst VS are a bit of a shadow of their former selves and their routes not as interesting as they once were it would be sad to see them fail.  The Clubhouse in Heathrow is one of the best lounges I've been in, plus drive through check in is amusing, and spent many an hour sitting at the bar on their planes (though its never been as the photos show). They're the best option if you are flying West from the UK and happen to be going to a city they serve.

phillw

born_again said:

You do not even need S75 anyway. A chargeback will do the job if they fold. And be a lot quicker.

As long as there is money in their bank account to cover the chargeback.