low cost holidays

[Stuart T]

I stopped rambling when I started going off track........

Now I've started again.

[KKOB]

I can't see the point.

[Colwyn]

Things are becoming more complicated. Reclaiming a credit card debt following redundancy is covered by Section 75 of the Consumer Credit Act. But this does not apply if there is a disconnect between the payment and the thing being paid for (in this case the hotel) e.g. if lowcostholidays was acting as an agent. I have heard back from the hotel and they say:"As you are aware of, Lowcost Holidays, is no longer operating. We, as Hotel ****, didn’t have a direct contract with them. They bought your reservation, through a Portuguese Travel Agency, to whom we have a commercial contract". Does that mean that lowcost was a direct purchaser of the reservation so is covered under Section 75? Or does it mean that the Portugeuse travel agency is the agent and that breaks the connection? If Section 75 doesn't apply I need to explore "cashback" VISA provision. Hey, ho!

Meanwhile, Portugeuse TA has not yet cancelled my reservation but the hotel is expecting it and has written to them. So I don't even have proof my hotel is cancelled - but it is certain it will be.

[Stuart T]

What a stinker, Colwyn.

I hope the VISA cashback proves successful if all other avenues close up.

At least you have a few weeks to resolve this before heading out.

Good luck with it all.

[KKOB]

There might be some useful info on here Colwyn

http://www.moneysavingexpert.com/news/travel/2016/07/low-cost-holidays-calls-in-administrators

[Colwyn]

Thanks KKOB. It is a site I rely upon for financial advice. I've downloaded the general lowcost advice, the Section 75 page and will copy his credit card letter template. I don't want to make this a full-time job!

[Colwyn]

I've finally got confirmation from the lowcostholidays administrator that my hotel is indeed cancelled. I can now book something else and start the process to try to reclaim money. That counts as a good day.

[Colwyn]

Stage One Completed. I have received a refund of £307.50 from my cedit card company (£300 deposit and £7.50 admin fee) paid on my credit card. Result! Apart from the money (always handy) is is confirmation that lowcostholidays is not an agent and that the cc company is viable

Stage Two. Now I have to get back the £432.02 final payment paid on debit card. Two possibilities are open. (i) go back to credit company and remind them that Section 75 of the Consumer Credit Act 1974 that they are jointly and severally liable for any misrepresentation or breach of contract with lowcost i.e including the debit card failure of contract. I have been informed of this by my financial advisor. (Actually my "financial advisor" is Martyn Lewis' website, but there is no reason my credit card company has to know this). (ii) Go down the debit card route and attempt to get a VISA refund but I don't know if Santander is signed up to this deal (some banks are: some not).

I'll let people know the outcome in case they face something similar in future.

[Stuart T]

Well done on Stage 1.

All the very best with your efforts for Stage 2, Colwyn.

Good luck.

[marina]

Pleased to hear you are making progress Colwyn.  Good luck with Stage 2.

Still feel incredibly lucky that, having booked with low cost holidays for the first time ever this year, we went in May, before they went bust!