RSD Travel Ltd not accepting credit card payment

PoodleTOodler

We booked a holiday with RSD Travel and paid a deposit with my credit card.
The booking confirmation states that the remaining balance will be taken from the same credit card on 9th January 2022.
We got an email from them today (1 working day's notice before payment due) saying they are no longer accepting credit cards and the full balance is now due by bank transfer.
We rang to protest that this was contrary to their contract with us and it is difficult to make cash available at such short notice. Their response was that we must make this final payment or they can cancel our holiday if we do not make our final payment on time. In accordance with our T&Cs If we do this, we will keep your deposit.
Is this fair and reasonable conduct with reference to industry codes please?

NoodleDoodleMan

They are ABTA members - might be worth a call there.

PoodleTOodler

I'm thinking of advertising standards too. They're still offering credit card payments on their website despite my pointing that out to them.

Emmia

Are you sure someone isn't trying to scam you, having intercepted email etc.

Did you use the number on.the email, or from a brochure /website that you had already?

Alan_Bowen

RSD used to be regulars on this board, not everyone thought they provided what they were offering but it is now some years since they appeared. I would be worried that the bank has withdrawn card facilities completely because of their financial position, they do this to reduce the number of section 75 claims that can arise after a failure. The good news from your point of view is that if you used a credit, not debit, card to pay the deposit, the full amount you pay is protected anyway. 

Having looked at their last accounts, they were doing very well indeed, with good profits and a lot of assets but they are ultimately controlled from Germany where the parent company is based, so maybe there is an issue there.  As suggested above contact ABTA and see what they say as refusing to accept CC is very unusual indeed and if they simply have no facilities to accept cards, they should be prepared to accept payment by instalments if that is what you want

Sandtree

Emmia said:

Are you sure someone isn't trying to scam you, having intercepted email etc.

Did you use the number on.the email, or from a brochure /website that you had already?

Especially given the thread the other month about someone who was convinced into making a bank transfer and turned out to be a rogue employee giving their own overseas account.

It'd be sensible to call them back at a later time on the number you have for them and checkout the story.

Also worth reading the T&Cs on their ability to change them

PoodleTOodler

Emmia said:

Are you sure someone isn't trying to scam you, having intercepted email etc.

Did you use the number on.the email, or from a brochure /website that you had already?

Thanks but no - we rang them on their long established number.

PoodleTOodler

Alan_Bowen said:

RSD used to be regulars on this board, not everyone thought they provided what they were offering but it is now some years since they appeared. I would be worried that the bank has withdrawn card facilities completely because of their financial position, they do this to reduce the number of section 75 claims that can arise after a failure. The good news from your point of view is that if you used a credit, not debit, card to pay the deposit, the full amount you pay is protected anyway. 

Having looked at their last accounts, they were doing very well indeed, with good profits and a lot of assets but they are ultimately controlled from Germany where the parent company is based, so maybe there is an issue there.  As suggested above contact ABTA and see what they say as refusing to accept CC is very unusual indeed and if they simply have no facilities to accept cards, they should be prepared to accept payment by instalments if that is what you want

Thanks, yes we've used them before and know their form and Credit Card benefits. Like you I'm slightly skeptical in case they're in financial difficulty. They said they'd lost their payment platform because of Brexit and EU financial regulations. I pointed out that with respect that's their problem and has been known about for some while. I've raised a formal complaint with them as a precursor to Trading Standards, ASA and ABTA complaints.
 

PoodleTOodler

I should add, the email request for DD payment in full yesterday only came after we rang them early morning to enquire if the holiday was still running as we'd had no updates or reminders that they would take CC payment on 9th January. Does make you wonder what they would have done had we not rung to remind them.

PoodleTOodler

Credit where credit's due (excuse the pun) - Thank you to all those who contributed here.
Also - Following my written complaint today, I got a call from the UK Managing Director of RSD and, following negotiation, they are to give us £100 off of the remaining balance which may be paid by credit card when their payment platform is reinstated.
All's well that ends well and I hope anyone else who has a similar experience with RSD Travel stands up to them for the proper outcome. 

PoodleTOodler

What's interesting too is they claimed they didn't didn't know their payment platform would fall over on 31/12/ 2021. I had to point out to them that this was a known Brexit problem for a long time!
"The United Kingdom has left the European Union on 31 January 2020. Under the Withdrawal Agreement reached between the EU and UK, the EU legislation will continue to apply in the UK during the transition period that is due to last until 31 December 2020. After the end of the transition period EU law will stop to apply in the UK from 1 January 2021 and from  that date provision of financial services from UK authorised institutions to EU customers on a cross-border basis (passporting) will no longer be possible".