Loss of deposit on a sold villa

Wing_Man

Help!

We booked 2 villas in Cyprus online on 05/06/2021 to stay 25/05/2022 to 05/06/2022 and paid a £1100 deposit. It took us an awfully long time to find the villas because of the number of people, 11, the age range, 0 to 62 and we needed to be in or near Larnaca for a wedding. Even booking a year in advance, most of the choice villas had already gone.

We received an email from the Villa company on 25/10/2021 saying that the owner had sold the villas and they would be no longer available. The villa company suggested an one alternative very large villa, which was in a different location and more than twice the price. We had already looked at this one and discounted it on location and cost. I checked all the other villas the company advertised and none of them were anywhere remotely suitable. We heard no more from the villa company, so went ahead and booked another villa through AirBnB. The Villa company then came back to us and said he had found other villas and therefore wouldn't give us our deposit back.

I took this matter up with both John Lewis Financial Services (JLFS), our credit card provider, who we had used to pay the deposit and Direct Line (DL), who were our annual travel insurance provider.  JLFS said it wasn't their responsibility, but not to worry, our travel insurance would cover it. DL said it wasn't covered by the insurance police as the company hadn't gone bust but not to worry, we could claim in back on the credit card!  Stalemate! So, I raised a complaint against JLFS on 29/10/2021. There was a back and forth communication up until 04/11/2021. Then I heard nothing for 6 weeks. I was chasing every week for feedback, but got nothing. I eventually received an update on 13/12/2021 saying that the deposit had been refunded and a letter had been sent. I received the letter on 14/12/2021 confirming the refund but stated that the matter would be investigated further and the refund may be rescinded. I was informed on 02/02/2022 that the merchant had refused the refund, he would, and that the credit would be removed from the credit card. I.E. No more refund.

I raised a complaint with  the Financial Ombudsman against JLFS for their poor process of dealing with such matters and their appalling mismanagement of my particular case. Didn't get anywhere.

In parallel with the Financial Ombudsman I went back to DL. I explained the current situation and was told that they would pass me on to their 3rd party legal firm. I received a response from this firm Simpson Millar on 14/03/2022. I sent them all the necessary paperwork and they took on the case. I have emailed my contact at Simpson Millar at regular intervals since then to be given this excuse or that excuse until 10/08/2023, i.e. 17 months, when I received an email stating that they never received a reply from their Cypriot lawyer contact so they just closed the case. It is now back with DL.

I contacted DL today, to see where we go from here. I was told I wasn't able to speak to the department dealing with the case. The woman on the phone would email them and they will contact me. It wouldn't be before Friday as the department is closed on Tuesdays and Thursdays.

So, given all that has happened, I don't actually who is in the wrong, apart from the Villa Rental company. I suspect that they are all in the wrong. The only organisation involved in this whole sorry saga who have responded to me without prompting has been the Financial Ombudsman. I have spent almost two years chasing people for a response. Where have I got? The latest from my contact at Simpson Millar, 'It may take a couple of weeks for them to review, but hopefully your insurers will agree to pay you'. The result of 2 years of my blood, sweat and mostly tears!

What do I do now? 

   

DE_612183

I presume the Villa rental company are based in Cyprus?

DE_612183

I doubt this will be covered by insurance - here is a section from the JLT T&C - see point (e):

What is not covered As well as the general conditions on pages 51 and 52, the following exclusions apply: 1. You are not covered for claims caused directly or indirectly by the following: (a) You deciding you no longer want to travel (b)A labour dispute or protest (c) Government regulations, acts of parliament or currency restrictions (d) Your financial circumstances or unemployment (other than redundancy if you are under 65 and have two years’ continuous employment with the same employer) (e) The tour operator, or anyone you have made travel or accommodation arrangements with, failing to provide the arrangements (f) Your disinclination to travel or loss of enjoyment of your trip (g) You travelling against medical advice or to get medical treatment (h)You failing to get a valid passport or other travel documents you need (i) Your suicide, attempted suicide, intentional self injury, or knowingly or deliberately putting yourself a

[Deleted User]

Don't ask JL, just tell them you want to do a chargeback.

sheramber

[Deleted User] said:

Don't ask JL, just tell them you want to do a chargeback.

Already done that

I eventually received an update on 13/12/2021 saying that the deposit had been refunded and a letter had been sent. I received the letter on 14/12/2021 confirming the refund but stated that the matter would be investigated further and the refund may be rescinded. I was informed on 02/02/2022 that the merchant had refused the refund, he would, and that the credit would be removed from the credit card. I.E. No more refund.

I raised a complaint with  the Financial Ombudsman against JLFS for their poor process of dealing with such matters and their appalling mismanagement of my particular case. Didn't get anywhere.

Westin

What do the terms and conditions of the Villa company say about deposits and changes to your booking? Are they in breach?

Wing_Man

The Villa rental company are in breach but nobody has been able to get hold of them and get the money back. Because they are in Cyprus, all they need to do is ignore anything and they get to keep our £1100. 

Wing_Man

My biggest issue with all of this, is what has happened is morally wrong. We did everything we should have done. Paid with a credit card and have annual travel insurance, yet, due to circumstances beyond our control we have lost out financially. I would like to think that I am an upstanding citizen. Had it been me running the Villa Rental Company, I would have offered the deposit back as soon as the villas fell through. What I don't know is, did the villas exist in the first place and/or did the villa company have the right to offer them for rent in the first place or is it all a con to take our deposit?     

Westin

Wing_Man said:

The Villa rental company are in breach but nobody has been able to get hold of them and get the money back. Because they are in Cyprus, all they need to do is ignore anything and they get to keep our £1100. 

Can you name them and provide a link to their trading terms?

Mands

Wing_Man said:

What I don't know is, did the villas exist in the first place and/or did the villa company have the right to offer them for rent in the first place or is it all a con to take our deposit?     

Well, that part at least might be checkable. 

A Cypriot law firm ignoring an issue and hoping it would go away would be entirely expected. It feels your insurance company should have been more proactive. 

Are you able to share details of the villa company or villa itself?