Debt collection agency and travel company

SkyDoc56

I had to cancel a trip to Italy last July due to UK and EU Covid restrictions, FCO advice and flight cancellations. I cancelled with the Danish villa company (Novasol) 46 days before travel, who then refused to refund £937 deposit and would not acknowledge my cancellation. My understanding of the UK legal position is that the contract was 'frustrated' as neither party could honour it and so contract was not valid. I recovered lost deposit from travel insurance and blocked further emails from Novasol, who now have terrible reviews on Trustpilot.  However, I have now had an rather threatening email from a debt collection agency (Intrum) demanding payment of the full villa cost within 7 days. Intrum have truly awful reviews on Trustpilot. Am I liable for this debt and can Intrum affect my credit rating without taking me to court, my then losing case and still not paying?  

jpsartre

Why could Novasol not honour the contract? What were the terms of the booking?

2021BJ

Why couldn't you travel to Denmark?  As far as I can tell it was open for business for EU + UK travellers back in July.

https://um.dk/en/news/newsdisplaypage/?newsid=1cfde8e4-dc48-4015-8621-dbb3c5a68b00

eskbanker

SkyDoc56 said:

My understanding of the UK legal position is that the contract was 'frustrated' as neither party could honour it and so contract was not valid.

Why would the UK legal position be relevant when entering into a contract with a Danish company?

SkyDoc56

The villa was in Tuscany, Italy was in full lock down and non-essential travel not allowed when I had to cancel in May. I also understand from my son in travel industry that  FCO advice was not to travel. BA cancelled flights and gave me vouchers. Novasol's Ts & Cs state that, in cancellation by writing,  only 25% of rental cost should be charged, which equates to the deposit they retained. Their Extraordinary Events / force majeure clause in the Ts & Cs does not refer to their right to full payment of rental in the event of an epidemic making the tenancy impossible and the client cancelling; only to their right to retain payments if Novasol cancel. 

sourcrates

Unsure of your position regarding liability, you would need to check the terms and conditions of your contract with them, as for intrum, they can demand what they like, it doesn’t mean a thing, they can’t take you to court as they don’t own the debt.

However the original company may choose to do so, but that would be unlikely.

Your credit file would only be affected if legal action were taken and you lost, under those circumstances you would have a CCJ registered against you.

2021BJ

SkyDoc56 said:

The villa was in Tuscany, Italy was in full lock down and non-essential travel not allowed when I had to cancel in May. I also understand from my son in travel industry that  FCO advice was not to travel. BA cancelled flights and gave me vouchers. Novasol's Ts & Cs state that, in cancellation by writing,  only 25% of rental cost should be charged, which equates to the deposit they retained. Their Extraordinary Events / force majeure clause in the Ts & Cs does not refer to their right to full payment of rental in the event of an epidemic making the tenancy impossible and the client cancelling; only to their right to retain payments if Novasol cancel. 

Why did you have to cancel in May?  Italy was open for EU and UK travellers in July.  I think you jumped the gun somewhat, as the accommodation was available and accessible in July.

The T&C's also state;

6.1 Cancellation can only be made in writing and shall only apply from the day on which NOVASOL receives it

and

c. From 39 days before the commencement of the rental period 100% of the total rental amount. If NOVASOL does not receive a written cancellation, the full rental amount shall be due even if the rented holiday home is not used. The fee will be rounded up to whole amounts in GBP.

As you say you cancelled 46 days before travel was this when you sent the letter or when Novasol received it?  If it was when you sent it I can easily see it not being received within a week under the circumstances.

Edit: And what about your travel insurance?  If they've agreed to cover the deposit (which seems a bit odd but whatever) then surely they would cover the remainder of the cost, if it is indeed due?

SkyDoc56

My cancellation was by email, to which Novasol responded, hence in writing > 40 days from commencement of rental. Their Ts & Cs did not specify 'in writing' as meaning a signed letter, hence a responded-to email was acceptable. Novasol changed their on-line Ts&Cs after Covid, but I printed out a copy of the Ts&Cs extant at time of booking and (as far as I can see) I have complied with them. I had also offered them the option of my rebooking for 2022 (they refused) or holding my deposit as a Refund Credit Note against a future booking for 2022 (as recommended by ABTA and widely in the EU) - again, they refused. They ignored every email from me and refused to engage in finding a mutually acceptable solution. Thank you for all your advice; I am reassured that no credit issue will affect me unless Novasol take me to court and win, which I think would be difficult, given my detailed email trail and copy of their Ts&Cs. 

eskbanker

SkyDoc56 said:

Novasol changed their on-line Ts&Cs after Covid, but I printed out a copy of the Ts&Cs extant at time of booking and (as far as I can see) I have complied with them.

They have three versions still available at https://www.novasol.co.uk/faq/general-terms-and-terms-of-rental, covering various booking and rental periods - usually easier to search for specific terms in PDF documents than in hard copies!