Section 75 refused

JK28

I booked via booking.com to Amsterdam and paid the hotel direct January 2020. It was cancelled by the hotel (covid) we were refused S75 by Halifax credit card as the hotel had a no cancellation policy. Lost £1300 roughly. After countless emails back and forth the hotel have agreed to let 2 of us stay there (was originally 6) in October this year. 
My question is should S75 have refunded us the amount as paid via CC or were they right as the hotel had the no cancellation policy? 

[Deleted User]

If you had no right to a refund, the credit card is correct in refusing a s75 claim.

born_again

S75 is based on breech of contract or misrepresentation.
If there is a "No Cancellation" policy. Then there can be neither of the required elements.

Should have looked a chargeback for non receipt of service. But that could have been rejected.

JK28

Thanks both, its what I assumed but just thought I'd check as seeing a lot about S75 lately

MSE_Petar

Hi JK28,

JK28 said:

I booked via booking.com to Amsterdam and paid the hotel direct January 2020. It was cancelled by the hotel (covid)

Could I just double check: was it definitely the hotel that cancelled the booking, or did you cancel it yourself? If the hotel cancelled, it doesn't seem right that they're refusing to give you a refund.

Generally speaking, where a travel firm (including an accommodation provider such as a hotel), cancels a booking, customers are entitled to a refund. The Competition and Markets Authority in the UK has said:

In particular, for most consumer contracts, the CMA would expect a consumer to be offered a full refund where:

- a business has cancelled a contract without providing any of the promised goods or services
- no goods or services are provided by a business because this is prevented by the lockdown laws
- a consumer is prevented from receiving any goods or services, because, for example, lockdown laws in the UK or abroad have made it illegal to receive or use the goods or services

In terms of the S75 claim, I would suggest there was a clear breach of contract if the hotel cancelled your booking - since it failed to provide the services you had paid for. It doesn't seem right that the hotel's 'no cancellation' policy would also apply to cancellations made by the hotel...

pbartlett

If the ***hotel*** cancelled the booking then they should have refunded you.

The credit card is jointly responsible with the hotel for not providing the service paid for and thus a S75 should work.

This is especially true since you paid the hotel direct (ie not via eg booking.com)

Go back to your card provider and if they again refuse open a formal complaint with them

JK28

Hi, yes it was definitely the hotel that cancelled, I sent proof to the credit card company but they said no. 
I will raise it again with them then.
Thank you all for the information 

MSE_Petar

JK28 said:

Hi, yes it was definitely the hotel that cancelled, I sent proof to the credit card company but they said no. 
I will raise it again with them then.
Thank you all for the information 

Hi JK28,

Just to note as well, if you're not happy with the response you get from the credit card company, you can escalate your complaint to the free Financial Ombudsman service. There's more info about how to do that in our guide linked below:

Financial Ombudsman – your rights

Hopefully you can get it sorted!

mgfvvc

MSE_Petar said:

Just to note as well, if you're not happy with the response you get from the credit card company, you can escalate your complaint to the free Financial Ombudsman service. There's more info about how to do that in our guide linked below:

Financial Ombudsman – your rights

Hopefully you can get it sorted!

Definitely worth trying the FOS, but don't expect them to be quick. Our credit card took 6 months to refuse a claim for a cancelled flight. It's been with the FOS for over 6 months and we're still getting holding emails.

born_again

MSE_Petar said:

JK28 said:

Hi, yes it was definitely the hotel that cancelled, I sent proof to the credit card company but they said no. 
I will raise it again with them then.
Thank you all for the information 

Hi JK28,

Just to note as well, if you're not happy with the response you get from the credit card company, you can escalate your complaint to the free Financial Ombudsman service. There's more info about how to do that in our guide linked below:

Financial Ombudsman – your rights

Hopefully you can get it sorted!

Just remember you have to raise a complaint with the bank 1st & wait for their reply or 8 week limit before going to FOS. Raising a S75 claim is not a complaint.