Hotel gone bust - CC says to register claim as creditor first

Scampi_Fries

First time poster, after some advice please. Short story I had a hotel booking for a short break in Amsterdam this Summer but have been informed the owner has gone bust, so I can no longer stay there and the money is now held with a 3rd party trustee.  I paid upfront on Credit card (Halifax) so put a claim in to get the money back from them, but they have come back to say I need to try claiming the money back from the administrators as a creditor first. Reading the MSE advice it seems to imply that in this situation the credit card issuer is liable (S75) and it is them that can pursue the claim after issuing me a refund. Are they just trying to fob me off, or are they entitled to make me go through the creditor route first? For obvious reasons I was hoping I would not need to go down that route (guessing much longer and will only end up back with CC anyway!) thought this was the exact circumstances that credit cards were supposed to give you extra protection? Grateful for any advice. Thanks

NottinghamKnight

No, the card provider is jointly and severally liable with the retailer, so you can go after each or both for a refund. Contact Halifax and remind them of this, they may say they'll try a chargeback to the retailer's bank which you might accept, a section 75 comes out of their pocket which is hwy they reluctant. If you get blocked then raise as a formal complaint as that could cost them a lot more and should get some progress. 

[Deleted User]

Try the card, 3rd party trustee (escrow) and the administrators in parallel.
It's just a few letters/e-mails and it strengthens your claim against Halifax should you go to the ombudsman.

born_again

Scampi_Fries said:

First time poster, after some advice please. Short story I had a hotel booking for a short break in Amsterdam this Summer but have been informed the owner has gone bust, so I can no longer stay there and the money is now held with a 3rd party trustee.  I paid upfront on Credit card (Halifax) so put a claim in to get the money back from them, but they have come back to say I need to try claiming the money back from the administrators as a creditor first. Reading the MSE advice it seems to imply that in this situation the credit card issuer is liable (S75) and it is them that can pursue the claim after issuing me a refund. Are they just trying to fob me off, or are they entitled to make me go through the creditor route first? For obvious reasons I was hoping I would not need to go down that route (guessing much longer and will only end up back with CC anyway!) thought this was the exact circumstances that credit cards were supposed to give you extra protection? Grateful for any advice. Thanks

So can we have some info?
Amount of booking per person? Important due to S75 limits.
Booked direct with hotel or via 3rd party booking site? Again can affect S75 claim.
When were you due to travel, and when was booking made? Might be chargeback option.
While the owner has gone bust, is the hotel still open, but with new owners?

Scampi_Fries

It's around £500. Booked direct with hotel last Feb was due to travel July this year. Hotel is kind of open with new owners I think but currently closed due to pandemic so not really clear cut!

born_again

Scampi_Fries said:

It's around £500. Booked direct with hotel last Feb was due to travel July this year. Hotel is kind of open with new owners I think but currently closed due to pandemic so not really clear cut!

So how many people for how long?
If you booked direct how are the new owners dealing with customers that had paid previous owner?
Has the booking been cancelled by the old/new owner? Or is it still active? Assuming you mean the stay is in 2021.

Scampi_Fries

2 ppl 3 nights. I was contacted by email by new owners to say the booking is unfortunately no longer valid and referred me to the claim agent. Naïvely thought would be straight forward to go to credit card first but perhaps not?

born_again

Should really be a straight forward chargeback for non receipt with the proof that the new owners are not providing the service.

I would go back to Halifax, ask for the disputes team and give them the new info that new owners will not be providing the service, as such you want a non receipt chargeback.

Scampi_Fries

Thank you all