Suspension of interest charges for Thomas Cook transaction

Good day,
I always pay off the balance on my credit card in full and I have been with them a long time. I purchased a holiday with Thomas Cook with my Barclaycard 3 weeks before they went burst.
As soon as I heard the news and because of the amount involved, I put a claim through with the credit card company (bearing in mind they also sent me a text to do this when the news broke) and they said all interests on the amount will be suspended.
Fast forward to today, I recieved a letter which says in a nutshell to go claim with CAA and that any suspension they might have applied to interest charges on the amount has now been removed and full interest will be due on the amount from the date on the letter.
I have been informed the refund by ATOL may take up to 60 days. This means I will be charged interest on this amount for the duration or I pay off the balance and just sit and wait till ATOL processes the claim I submit.

I want to find out:
- Can I respond to Barclaycard stating S75 or I do not have any leg to stand on? Bearing in mind, I will be charged interest for as long as the full balance remains fully paid.

Many thanks.

Comments

  • Pay the balance off to avoid the interest.
    You’ll get the money back from the other means.
  • Ben8282
    Ben8282 Posts: 4,821
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    You are claiming through the ATOL protection not through the credit card.
    You will therefore have to pay the credit card at some point.
    You say that you always pay in full every month and have said nothing to the effect that your intentions with regard to the holiday payment were any different.
    Therefore you presumably have the money to pay so pay up or pay interest. It's up to you.
  • born_again
    born_again Posts: 14,015
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    MizLee wrote: »
    I want to find out:
    - Can I respond to Barclaycard stating S75 or I do not have any leg to stand on? Bearing in mind, I will be charged interest for as long as the full balance remains fully paid.

    Many thanks.

    You can contact them re this. But my feeling is that as ATOL are refunding then they will deny the claim on that basis. Or you could end up with 2 refunds. As S75 comes from card provider and NOT ATOL or any retailer.
    Also S75 is never a quick process.
    Life in the slow lane
  • Thanks for the responses. I will do as advised. I erroneously assumed S75 is a quick process.
    Many thanks!
  • phillw
    phillw Posts: 5,593
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    MizLee wrote: »
    and full interest will be due on the amount from the date on the letter.

    Was the date in the future, or are they expecting to get interest for the time between sending the letter and you receiving it? If they accepted the claim in the first place and suspended interest then reinstating it without giving you the chance to avoid it is kinda unfair.

    If so then I'd complain about that as I'm not sure you'll be able to claim for the interest from ATOL.
  • System
    System Posts: 178,077
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    phillw wrote: »
    Was the date in the future, or are they expecting to get interest for the time between sending the letter and you receiving it? If they accepted the claim in the first place and suspended interest then reinstating it without giving you the chance to avoid it is kinda unfair.

    If so then I'd complain about that as I'm not sure you'll be able to claim for the interest from ATOL.

    Since they are jointly liable (via S75) for the provision of the contract, I would say that you will happily pay the interest when they fulfil their obligations i.e. provide you with the holiday ordered.
  • phillw
    phillw Posts: 5,593
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    Heng_Leng wrote: »
    Since they are jointly liable (via S75) for the provision of the contract, I would say that you will happily pay the interest when they fulfil their obligations i.e. provide you with the holiday ordered.

    You don't get covered twice though, i.e. you can only claim from the credit card provider if you have no other option & they've informed him he does have that option. So I'd expect them to try their luck and if they do you should push back.
  • System
    System Posts: 178,077
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    phillw wrote: »
    You don't get covered twice though, i.e. you can only claim from the credit card provider if you have no other option & they've informed him he does have that option. So I'd expect them to try their luck and if they do you should push back.

    The S75 protection is superior as they are liable on a like for like basis.
    ATOL will only refund the principal sum paid. If there is a gap (e.g. interest cost) I would expect the credit provider to make good the difference.

    Do you understand that you can be covered twice but not paid double?!
  • born_again
    born_again Posts: 14,015
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    Heng_Leng wrote: »
    ATOL will only refund the principal sum paid. If there is a gap (e.g. interest cost) I would expect the credit provider to make good the difference.

    Do you understand that you can be covered twice but not paid double?!

    The OP stated they pay in full. So there was no reason that they should not have done the same as usual. Even with the letter about no interest.

    But are you aware that ATOL would NOT be aware that the Card Provider has refunded the customer?
    As S75 refunds come from the card provider and no contact is made with the retailer/bond agent.

    Thomas Cook banged on & on before they closed that EVERYONE who had booked a package holiday would get a FULL refund from ATOL.
    So no reason to contact bank/card provider for a refund.
    Life in the slow lane
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