I'm not sure about this particular query (which I think should probably be in a different forum rather than 'Complaints'), but I just wondered if your issue with the holiday you booked with Direct Line (on a low deposit, then didn't pay any other monies but still received your tickets) has been resolved.

tried ringing them but no reply. Wrote them a letter today with the tickets inside and telling them i had cancelled it. Then just have to wait and see what happens from there

The system of financial protection offered by ATOL bonded operators was revised as from 1 April, due to a deficit in the existing bonding system. This new ATOL levy is known as the ATOL Protection Contribution (APC) and it is a contribution of £1 per person which ATOL travel companies pay into the Air Travel Trust (ATT) in order to replenish the protection fund. The ATT is managed by the CAA and in the event of an ATOL travel firm going bust, the fund is used to protect customers already abroad and refund those at home who would no longer be able to travel. The price of any holidays booked through an ATOL holder from 1 April should include the new ATOL Protection Contribution (APC), which should be indicated on your booking confirmation/invoice. I haven't heard of anyone having to pay this charge at the airport.

David

I booked a holiday with Thos Cook last month for October.

The levy is shown in the breakdown of costs.

I would assume that anyone booking a holiday or flight would pay it at the time of booking just as you do with taxes and supplements.

Whilst the purpose of the fund is good I do see it as a means of the TOs/Airlines saving on the amount of money they have to put into the bond they are required to have.

fwh

ATOL levy to rise to £2.50

ATOL Protection Contribution (APC) is to rise from £1 to £2.50 per passenger.

The raising of the from October 1 levy follows industry consultation when ABTA called for a "fundamental reform" of the ATOL system.

The annoucement was made by transport minister Paul Clark, who said he approved the increase as recommended by the Civil Aviation Authority after "careful consideration".

He said: "I am aware of the extra burden this will place on travel companies and consumers in difficult times, which is why I have agreed to an increase at the bottom end of the range consulted on by the CAA.

"I believe it strikes the right balance between ensuring the financial stability of the ATTF [Air Travel Trust Fund] while keeping additional burdens on travel companies and consumers as low as practicable."

Clark added that the £2.50 for the protection that ATOL offers represented a "good deal" for consumers, being cheaper than stand-alone airline failure insurance and representing less than 0.5% of the average ATOL holiday price.

A higher rate of 3.50 per passenger had been considered.

Clark revealed that the CAA would review the rate of APC before the ATTF moves out of the red, but this is not projected to be until the spring of 2012.

He also said the government intended to consult on reforms to the ATOL system in the autumn "to make it fairer and more understandable" for consumers.

ABTA chief executive Mark Tanzer respnded by saying: "Although ABTA members were disappointed that the APC should rise so soon after its introduction at £1, we accept that market conditions and recent failures have meant that measures are required to stabilise the Air Travel Trust Fund (ATTF).

"We are glad that the proposed increase is at the lower end of the options considered, as APC places a direct burden on ATOL holders in what is a difficult trading environment.

"We look forward to the APC returning to the level of £1 as soon as the finances of the ATTF permit."

He added: "Not only is the existing scheme of financial protection fragile, it has also created great uncertainty and inequalities for the industry and the travelling public.

"We look forward to working now with the CAA and government to develop a more effective and fairer system of consumer protection in travel."


With permission from Travelmole