Calculation of interest when going through the small claims court

Rosybaxter

We are struggling to get our money back from a cruise booked in 2019 and then postponed due to Covid and then cancelled! I would like to know when we can charge interest from? It was eventually cancelled on the 7th Jan 21 and we were told 180 days for any refund. I chased this up in July and they then put forward a proposal of 3 monthly instalments on which they have now defaulted. They were late paying the first instalment and we have now been told that it’ll be 4-6 weeks before we get, what should have been the August payment!! I need to know what date we can rightfully charge interest from on our claim. Thanks

tacpot12

If you have home insurance, check to see if you have legal expenses cover. If you do, call your insurer's Legal Helpline. 

I assume the 180 days delay was in your contract? If not, but the other party claims invokes any force majeure clause in the contract, then I would expect that because they offered to refund you in 180 days, your right to interest would start from that point. 

eskbanker

Assuming the cruise was a package as defined by the Package Travel Regulations 2018 (as most are) then cancelled holidays within the scope of those must be refunded within 14 days (under regulations 13 and 14), so if applicable I'd argue that the clock started ticking 14 days after date of cancellation, so 21 January 2021. 

Given the Covid impact on the travel industry (as well as everyone else of course), many organisations have put forward more favourable (to them) payment terms for refunds, but such proposals don't affect your statutory rights, so the suggestion of 180 days doesn't override your legal right to be refunded within 14....

michael1234

Charge from the earliest possible date and if you're wrong the judge will amend as appropriate. He/she knows its on the small claims track and you are unlikely to have legal advice.