Debt Management Company trying to go around Section 75

zanarchist

Hello! My first post, please be kind! 

Bit of a complicated one (or at least, it looks like it to me ) so would like to run it past the brains here as I don't really know what my options are. 

I had an Italian villa booked on my (HSBC) credit card in 2020 with a Danish company called Novasol. Italy locked down, BA cancelled and refunded the flights. I contacted Novasol a number of times asking for a refund as, given the lockdown, even if I could get to Italy, I wasn't allowed into the country. They refused to give a refund and insisted I could only have vouchers. I pointed out that a voucher with the validity of 1 year, given there was no end to Covid disruption in sight was not particularly useful to me, but they wouldn't budge.

So, I went to my Credit Card provider and asked for a Section 75 refund, as the service I had paid for, I couldnt possibly use. It was approved, I got the money back, all good.
Novasol did not dispute the refund, instead, they started contacting me saying I now owed them the entire sum, again. I informed them that their dispute was now with the credit card provider, not myself. 
Radio silence for 5 months, and then I get mail from an Irish company called Intrum, who tell me they have been engaged by Novasol to collect the full amount and I have 7 days to pay. 

So, a Danish company has engaged an Irish company to pursue a debt in the UK, which I don't believe I owe. Which resource can I turn to dispute this? Is it the UK Financial Ombudsman? Is it something European? 

[Deleted User]

It sounds as if it was a chargeback, rather than section 75, in which case the company is right and you do still owe them.

You can try to come to a settlement with them, but they're unlikely to give up. Either way, don't ignore it.  

Caz3121

Was the villa 'open' on your dates? If the villa was available to you (aside from the separate travel issues) then you would need to look at the terms and the conditions of the booking. If this was non-refundable then you would be due the money but would be making a claim with your travel insurance company.
There is a difference between paying for a service that was not made available to you and one that was available but you could not get to.

zanarchist

Yep Im absolutely not going to ignore it. I did try to speak to a solicitor in the UK to get advice, but they were unable to give me an opinion as they weren't sure whether it would fall under UK law or not. 

If I do owe them the money I am covered by travel insurance, so I can pay them and then start the process of claiming, I just want to be certain that they have gone about this correctly. The booking in question was during the first 'hard' Italian lockdown when all travel within northern Italy was blocked.

finalfantasist

zanarchist said:

Yep Im absolutely not going to ignore it. I did try to speak to a solicitor in the UK to get advice, but they were unable to give me an opinion as they weren't sure whether it would fall under UK law or not. 

If I do owe them the money I am covered by travel insurance, so I can pay them and then start the process of claiming, I just want to be certain that they have gone about this correctly. The booking in question was during the first 'hard' Italian lockdown when all travel within northern Italy was blocked.

Gone about it correctly in what way?  The method they've used seems perfectly valid.  You clawed back the money they believe they were entitled to, creating a debt which they've passed over to a DCA to collect. Perfectly normal and fine.

If the question is whether they were entitled to keep the funds or not that's a different mater entirely.

MattMattMattUK

You need to establish if the venue was open on the dates you had booked. You might have an issue with your insurance as you refused the vouchers, which many insurers are using as a reason not to pay out (eg you caused your loss by not accepting the vouchers).

MEM62

zanarchist said:

I just want to be certain that they have gone about this correctly. 

At this stage it is more important to you ensure that you have gone about it correctly. What does the contract say about cancellations?  Also, were there any additional rules brought in by the Italian Government?  (For example, in Greece, legislation was changed to allow the issuing of vouchers in order to try and keep the tourist industry afloat) 
As an aside, as you have travel insurance, personally that would have been my first port of call before making a chargeback.  In my opinion it is still worth speaking to them for their take on it.        

eddddy

Assuming, it's the correct company - these might be the contract terms you agreed to:  https://www.novasol.co.uk/faq/general-terms-and-terms-of-rental

They say: 

13. JURISDICTION In case of disagreement, the case shall be brought in the jurisdiction area, where the holiday home is located and shall be resolved according to Danish law, which is agreed between the parties

So you'd need to read the contract, and I guess consider it in relation to Danish contract law, and other relevant Danish Law.

It sounds like they may be able to take the case to an Italian court. If they do that and win, I don't know what enforcement options Italian courts have in the UK, or whether that might cause problems if you visit Italy again.

comment_as...

As I understand it (I'm an unemployed idiot on the internet who most recently worked in the McDonald's kitchen) if you've claimed under S75 then it's the credit card company's problem.
What about asking the insurance company before you pay? Maybe they should pay it directly, if at all?

[Deleted User]

eddddy said:

Assuming, it's the correct company - these might be the contract terms you agreed to:  https://www.novasol.co.uk/faq/general-terms-and-terms-of-rental

They say: 

13. JURISDICTION In case of disagreement, the case shall be brought in the jurisdiction area, where the holiday home is located and shall be resolved according to Danish law, which is agreed between the parties

So you'd need to read the contract, and I guess consider it in relation to Danish contract law, and other relevant Danish Law.

It sounds like they may be able to take the case to an Italian court. If they do that and win, I don't know what enforcement options Italian courts have in the UK, or whether that might cause problems if you visit Italy again.

The trouble with asking on an internet forum is that you get well intentioned, bad advice. 

As a consumer, they have to raise legal action in your jurisdiction not theirs i.e. England/Wales, Scotland or NI unless you agree otherwise. 

born_again

comment_as... said:

As I understand it (I'm an unemployed idiot on the internet who most recently worked in the McDonald's kitchen) if you've claimed under S75 then it's the credit card company's problem.
What about asking the insurance company before you pay? Maybe they should pay it directly, if at all?

Asking for & getting are 2 totally different things.
HSBC will have advised you that they will do a chargeback as S75 was not applicable for you claim. You paid a 3rd party who simply passed the money on to the villa owner (unless Novasol actually own the villa) So no breach of contract as the contract was to pass the money to the Villa owner.
As with any chargeback if the company do not contest it (their right too) then they do have the right to chase you for the funds if they feel they have a genuine case (we warn customers of this)
So as poters above. What you owe is going to depend on if the Villa was still available to rent at the time.