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.