Credit Card company refusing a section 75 claim

Bluey456

We had a train travel holiday with Arena travel to Switzerland cancelled due to going into administration. Arena advised us that the holiday could still take place but we would have to pay again, but to Leger/Shearings who have taken the company over & therefore will have to pay again as its different terms & conditions. Arena informed we need to  
claim our money back under a section 75 claim so we can pay Leger/Shearings. If we decide not to go as the holiday was only 2 weeks away, we should get a full refund. We can't afford to pay twice for the same holiday & hope we get our Initial money paid refunded without any issues.

We contacted card company & explained everything & what we had been told to do & after a couple of e-mails from them they quickly came to the conclusion that as Arena
had offered a "solution" to this.... they were going to decline a refund & close the case !!   
We are dumbfounded at this & have since called both the card company & Arena/Shearings who seem to be both blaming each other for this stalemate & we are going
back & forth & at the moment getting nowhere. We have contacted Citizens Advice who have seen all the communications & they say that the credit card company (RBS)
should be refunding us under section 75 & for us to try again with it ..... which we have but currently still waiting their response.

Can you offer any advice as to where we legally stand or is it that RBS are just being awkward for the sake of it & hope we go away ??  Either way very poor from them! 

DullGreyGuy

Normally this would be dealt with as a chargeback rather than S75 claim unless the time limit of a chargeback has expired. Banks obviously like chargebacks more because the monies comes from the other party's bank not your banks pocket.

If you are out of time the S75 is a reasonable course of action. I believe whoever has looked at your case hasnt understood it particularly saying the seller has offered a solution which was to do a S75 claim. Register a complaint and escalate to the Financial Ombudsman if you are unhappy with their response (or they fail to deal with the complaint within 8 weeks)

Bluey456

We are not seasoned travellers abroad so all this is new to us. Arena told us to claim under section 75. I absolutely agree
that the credit cards claims team don't seem to grasp what we are telling them about this so called "solution" which involves
paying a second time for the holiday to a different company. But will they listen?  They also seem to say that it is Arena who are
somehow blocking the claim?  Arena/Shearings deny this of course.   

born_again

When was the payment made & who is showing on the statement. Has the full amount been paid?

Do you have any travel insurance?
This would also fall under ABTA.

https://www.arenatravel.com/travel-information/company-announcement

>>All of our clients’ monies are financially protected and we are pleased to have reached an outcome that enables our holidays to still take place and for the Arena brands to survive and prosper again under the new ownership of Leger Shearings Group.<<

https://www.leger.co.uk/arena-faqs

>>I have received notification that my holiday is going ahead. Do I have to pay again?

No, you will not need to pay any additional money. All monies already paid by yourselves are protected either through your credit card cover or Financial Failure Insurance provided by Arena Travel when you made your booking. However, this must be reclaimed by you in the first instance and then once received, repaid to the Leger Holidays. You will also need to assign your booking from Arena Tours Limited to Leger Holidays Limited / Leger Air Holidays Limited trading as Arena.<<

Laughable that they claim ALL monies protected, but direct you to CC provider. As not all will be.

phillw

Bluey456 said:

We contacted card company & explained everything & what we had been told to do & after a couple of e-mails from them they quickly came to the conclusion that as Arena
had offered a "solution" to this.... they were going to decline a refund & close the case !!   

It sounds like either you didn't explain yourself clearly enough, or the person misread what you said.

I'd contact the credit card company and tell them you want to make a complaint about their handling of the section 75 request.

Certainly I'd just go ahead and pay again for the holiday. By choosing not to go, you make it really easy for them to deny your claim. If you go, then they have no leg to stand on.

Bluey456

Yes that will be our next step to complain to the credit card company about how this has been handled. We still have the financial ombudsman route I guess if all else fails 

lisyloo

phillw said:

Bluey456 said:

We contacted card company & explained everything & what we had been told to do & after a couple of e-mails from them they quickly came to the conclusion that as Arena
had offered a "solution" to this.... they were going to decline a refund & close the case !!   

It sounds like either you didn't explain yourself clearly enough, or the person misread what you said.

I'd contact the credit card company and tell them you want to make a complaint about their handling of the section 75 request.

Certainly I'd just go ahead and pay again for the holiday. By choosing not to go, you make it really easy for them to deny your claim. If you go, then they have no leg to stand on.

Not everyone has the option of paying for a holiday a second time.

lisyloo

Bluey456 said:

Yes that will be our next step to complain to the credit card company about how this has been handled. We still have the financial ombudsman route I guess if all else fails 

Section 75 is a statutory right.
ultimately you can you via the courts and enforce your legal rights, but I would exhaust the free routes first.
if you have legal cover on your home insurance you may be able to get free professional legal advice.
chargeback is not a legal right.

DullGreyGuy

Bluey456 said:
They also seem to say that it is Arena who are somehow blocking the claim?  Arena/Shearings deny this of course.   

A S75 claim is against your credit provider, they pay for it out of their own pocket and its rare that they refer to the merchant. Obviously in this case the true merchant is either in administration or is already wound up as insolvent. 

If you do a chargeback then it does go to the merchant to respond however again in the case of administration/insolvency its unusual for them to respond. If the merchant themselves doesnt have the funds in their account to pay then its paid by their bank who become the unsecured creditor to the defunct merchant. 

msallen

It could be your refusal to follow the suggested path of paying again and getting the first payment refunded that is causing the problem, as it sounds as though that would go through without any issue. They may think that what you are in effect seeking to cancel your holiday and get a full refund 2 weeks prior to travel.

Assuming that is not the case and do still want to go, then I would speak to the card issuer again and ask them to confirm how long the refund of the first payment will take, and whether or not you would be responsible for any interest charges which may be accrued on your account (from the second payment) whilst awaiting it.

Bluey456

Thanks for all your comments. Like a previous poster said "maybe not everyone is in a position to pay twice" for the same
holiday, especially if you are not 100% sure you will get your first full payment refunded? Which is the case at the moment