Debit card Chargeback, firm gone bust.

SimonSNJ

I have just paid for a hotel using my debit card (Halifax Visa), and the firm I booked it with (go2spain.co.uk) have just gone under. They have not paid for my hotel, so I have had to rebook and pay again, loosing the payment I have made to go2spain.
Obviously I now want to get this money back.

I have read on here about the farepack saga, where some people were able to claim their money back using the Visa debit chargeback scheme, I tried this with my bank (Halifax), but they vigorously denied that this scheme exists, and when I asked to speak to a supervisor, they cut me off!
Is there anywhere where this scheme is set out in black and white, so I have something solid to quote at the bank?

The other way i am looking at getting my money back is via section 75 CCA, I know this only applies to credit cards, but I read on the Financial Ombudsman Service site that if you have an overdraft facility, and use the debit card to create or increase the overdraft, then the card becomes a 'credit token' under the term of the CCA. The comments on the FOS site refer to using the card in cash machines, but if the card is defined as a 'credit token' under the act, even though it is a debit card, would it then get full section 75 protection? (in the case of my payment, the card was used to increase my overdraft)

Failing all this, how do I go about claiming from the liquidators?


Thanks in advance for any help on this.

jonesMUFCforever

You do not have any cover under section 75 of the CCA because you used a debit card not a credit card.

From reading many posts on this subject I have come to the conclusion that Halifax are one of the better banks that may help you if you start a chargeback. This is at Halifax's discretion.

Please get a credit card for any future spending its a lot safer.

notisis

From what you say (that the debit card increased your overdraft) there is a definite case in my opinion for a claim under section 75 as this takes you into borrowing i.e. credit, (although of course others will disagree). Best thing is to give the Financial Ombudsman a ring as they have a helpline. They'll give you guidance on what forms to complete or whether you have to start a formal complaint process with Halifax. It's certainly worth a claim. If they say no, what have you lost apart from time, cost of a phone call and stamp. From what I understand if the amount takes you into overdraft you are entitled to claim the difference between the amount taking you into overdraft. If you were already overdrawn you should be covered for the full amount.

As to the liquidators there should be some information either on the website if still functional, or on an answerphone message. Failing that try internet search for the go2spain and see what it comes up with.

Good luck

PS If you go through the complaints process with Halifax and don't get a response, the likelihood is that the FSO will rule in your favour from what you say and it's treated as section 75 because of the overdraft giving you credit. It's worth a go.

SimonSNJ

notisis wrote: »

From what you say (that the debit card increased your overdraft) there is a definite case in my opinion for a claim under section 75 as this takes you into borrowing i.e. credit, (although of course others will disagree). Best thing is to give the Financial Ombudsman a ring as they have a helpline. They'll give you guidance on what forms to complete or whether you have to start a formal complaint process with Halifax. It's certainly worth a claim. If they say no, what have you lost apart from time, cost of a phone call and stamp. From what I understand if the amount takes you into overdraft you are entitled to claim the difference between the amount taking you into overdraft. If you were already overdrawn you should be covered for the full amount.

As to the liquidators there should be some information either on the website if still functional, or on an answerphone message. Failing that try internet search for the go2spain and see what it comes up with.

Good luck

PS If you go through the complaints process with Halifax and don't get a response, the likelihood is that the FSO will rule in your favour from what you say and it's treated as section 75 because of the overdraft giving you credit. It's worth a go.

Thanks for that. I have emailed the FSO asking them their views as to whether I am covered or not, so at least I will have something to go into the bank with.

The g02spain website just says its non functional, and the answerphone just says the company is in liquidation, no details of who is handling the liquidation. This only happened on Friday, so hopefully the message and website will be updated sometime soon with some details. Are the liquidators required to write to any unsecured creditors, or will it be up to me to contact them to make a claim?
I did get a phone call on Friday to inform me that the company had gone under, but the person who called refused to tell me what company he was representing, and simply told me that he had been contracted to contact all go2spains customers to inform them that they no longer had hotels booked, as the hotels had not been paid.

msaquib

They are covered:- some news on BBC

http://news.bbc.co.uk/1/hi/programmes/working_lunch/4260806.stm
http://news.bbc.co.uk/1/hi/programmes/working_lunch/7347146.stm

MS

mastayhar

Arrived at hotel in spain early hours of Friday morning and was told we had to pay to stay at hotel. We were not explained of the reason. Rang go2spain first thing Friday morning (08712201107) and answerphone gave a number in spain to call (0034 672 102594) lady very helpful, we had to contact another company who helped us with the situation (0870 755 0454). Not sure if this will help, but otherwise if you paid by credit card, you can Dispute the payment with the credit card company and they should refund you.

checster06

here is some information that was sent out to go2spain customers

It is with regret that due to financial pressure the company has instructed Begbies Traynor (Channel Islands) Limited of Charles House, Charles Street, St. Helier, Jersey, JE2 4SF, Channel Islands (Ms Geraldine Rigby, telephone +44(0)161 837 1750 / +44(0)161 837 1733) to assist in placing the company into creditors' voluntary liquidation.

This position means in respect of you personally that accommodation previously booked cannot now be honoured by the company. Any claim that you may have will be dealt with in the winding-up of the company following the creditors' meeting. However, it may be that you can make a claim from your credit card company if you have paid for accommodation with your card. The company strongly advises you to contact them as soon as possible if this is the case.

Accommodation booked through Go2Spain was not contracted directly with the hotel room supplier. For bookings after 25th June, with an arrival date before 7th July, the hotel room supplier has agreed to ‘hold’ your booking in place until 48 hours prior to your check-in date, alternatively for arrivals after 8th July, bookings will be ‘held’ for up 7 days prior to check-in. Should you still wish to travel you will need to re-book and pay for your accommodation again through holidayroomsdirect.com, the company appointed to administer the process.

If your booking is within 14 days, please call +44(0) 870 7 550 448, alternatively the general booking number is +44(0)870 7 550 454. Due to the number of bookings you may find it difficult to get through. If so, you can leave a message on +44(0)870 7 550 447.

Yours faithfully

Go2spain

julie97au

I received the liquidation letter this morning, but thankfully I had booked with my Marks and Spencer Credit card, who were extremely helpful on the telephone and took my details and told me there should be no problem getting a refund, once they had checked out the details. I rebooked through the company that is now dealing with their bookings, but had to pay nearly £150 more than I had previously paid, but at least I got rebooked. Would travel insurance sort this out for you???

jonesMUFCforever

julie97au wrote: »

I received the liquidation letter this morning, but thankfully I had booked with my Marks and Spencer Credit card, who were extremely helpful on the telephone and took my details and told me there should be no problem getting a refund, once they had checked out the details. I rebooked through the company that is now dealing with their bookings, but had to pay nearly £150 more than I had previously paid, but at least I got rebooked. Would travel insurance sort this out for you???

You should claim the extra cost from your credit card.
They are jointly responsible for the services you booked - they may not like it and try and fob you off but they have to pay.

jonesMUFCforever

jonesMUFCforever wrote: »

You should claim the extra cost from your credit card.
They are jointly responsible for the services you booked - they may not like it and try and fob you off but they have to pay.

If you look in the Travel board there are many examples of people getting a refund from airlines going bust and getting the extra that new flights have cost them.

dms_2

It's worth looking at this BBC article - holds out more hope