As some may be aware if you pay for something by credit card for a value in excess of £100 and the company goes bust before you receive the goods you can get a refund from your credit card provider under S75 of the Consumer Credit Act.
Following the Farepak debacle it now appears there is a little known system similar to the above, but not part of the CCA that allows your bank to get a refund from the company's bank (not the company) if you have paid using a Visa debit card.
It's designed so that if you pay for something and that order hasn't been adequately completed or is never received, or the order is illegitimate in some way, your bank can do a chargeback on the bank that collected the payment.
Most banks are unaware of the system as it's an internal Visa regulation, but it could be useful should you use a Visa debit card to buy goods which are never received. If the bank says it doesn't know what you are talking about you may need to make a written complaint to the bank and Visa.
One Farepak customer who went down this route has been promised a £1100 refund by December.
Don't assume the business has to go bust, this was advice specifically about Farepak. If your agent is changing a booking and not offering a refund of deposit etc this may be a way of getting the cash back.
Good tip there davyjp.
I'm aware of the section 75 protection for British registered credit cards but wasn't aware of the Visa Debit Card cover you've described.
Only worry I have - and this applies to Section 75 with a Credit Card - so may equally apply to the Debit Card situation - is a complexity concerning Agent's.
The wording in this matter (re. travel agents acting for a Tour Operator) is complicated and I do not profess to fully understand the subtleties. There's a risk that you might not be covered if you pay a Travel Agent using a credit card and they then pay the Tour Operator (with whom you have the contract) and one or other of these goes bust or similar and leads to you making a claim.
I'd greatly appreciate any legal experts out there clarifying this aspect but would urge caution until such clarification as Farepak seems to me to be all about Agents acting on behalf of the main company - and you pay the Agents, and generally in small amounts (less than £100) each time.
Again, thanks for the info daveyjp - but I often see the complicated aspects (pint half-empty sort of guy).
Mike
I'm aware of the section 75 protection for British registered credit cards but wasn't aware of the Visa Debit Card cover you've described.
Only worry I have - and this applies to Section 75 with a Credit Card - so may equally apply to the Debit Card situation - is a complexity concerning Agent's.
The wording in this matter (re. travel agents acting for a Tour Operator) is complicated and I do not profess to fully understand the subtleties. There's a risk that you might not be covered if you pay a Travel Agent using a credit card and they then pay the Tour Operator (with whom you have the contract) and one or other of these goes bust or similar and leads to you making a claim.
I'd greatly appreciate any legal experts out there clarifying this aspect but would urge caution until such clarification as Farepak seems to me to be all about Agents acting on behalf of the main company - and you pay the Agents, and generally in small amounts (less than £100) each time.
Again, thanks for the info daveyjp - but I often see the complicated aspects (pint half-empty sort of guy).
Mike
I've found this snippet of info from back in Sept 2005
http://news.bbc.co.uk/1/hi/programmes/working_lunch/4260806.stm
http://news.bbc.co.uk/1/hi/programmes/working_lunch/4260806.stm
well found Glynis. 
I work in the travel industry but not for a tour operator and have had to administrate many chargebacks, there are a lot of people out there that are aware of this procedure and it can only be a good thing if more people are made aware of it.
I think it's an extremely fair way to deal with problems, the consumer gets the refund from the card provider who then writes to the company involved to let them know the money will be taken back from their account, they then have to prove that they were entitled to take the money if they can't it's tough luck!
I think it's an extremely fair way to deal with problems, the consumer gets the refund from the card provider who then writes to the company involved to let them know the money will be taken back from their account, they then have to prove that they were entitled to take the money if they can't it's tough luck!
It works by the card issuer charging back the value of a problem purchase to the retailer's bank.
Once recovered, this cash can then be passed to the consumer.
Above quote from Glynis link.
What if there is no money in the retailers bank to recover?
silverpixie1uk, I think that the money is claimed from the bank, rather than the company's bank account which as you say may well be empty.
Just like an opinion if possible - I am one of the people affected by the debacle at Ezy Travel. Won't go into all the details as there is another thread devoted to this subject, but basically I paid Ezy Travel by Visa debit for a holiday which they did not book. They have now ceased trading and defaulted on payments to the Atol scheme. The Travel Trust Association are administering the claims for refunds but are requesting that all those affected obtain an individual crime reference number which is proving a little difficult as the police have been sending me round in circles. I contacted Visa debit and they told me I would be eligible for reimbursement, presumably under the refund rule outlined here. They very quickly sent me a claim form and have requested all correspondence so far.
My dilemma is whether to continue to pursue my claim with the TTA or whether to hand everything over to the debit card company to handle - I don't want to end up going backwards. Since some of you seem very clued up on these matthers I would be grateful for your thoughts
Thanks
Just like an opinion if possible - I am one of the people affected by the debacle at Ezy Travel. Won't go into all the details as there is another thread devoted to this subject, but basically I paid Ezy Travel by Visa debit for a holiday which they did not book. They have now ceased trading and defaulted on payments to the Atol scheme. The Travel Trust Association are administering the claims for refunds but are requesting that all those affected obtain an individual crime reference number which is proving a little difficult as the police have been sending me round in circles. I contacted Visa debit and they told me I would be eligible for reimbursement, presumably under the refund rule outlined here. They very quickly sent me a claim form and have requested all correspondence so far.
My dilemma is whether to continue to pursue my claim with the TTA or whether to hand everything over to the debit card company to handle - I don't want to end up going backwards. Since some of you seem very clued up on these matthers I would be grateful for your thoughts
Thanks
Kathyblue,
this is only my opinion (for what it's worth) but I'd doubt that by dealing with Visa you would compromise any possible progress with TTA. You might also receive a refund from Visa faster - and I'd guess that's your main priority.
this is only my opinion (for what it's worth) but I'd doubt that by dealing with Visa you would compromise any possible progress with TTA. You might also receive a refund from Visa faster - and I'd guess that's your main priority.
I would assume that the same rules apply as an insurance claim I made a few years ago.
The Police caught the culprits and I got some of the gear back.
The insurance company required me to sign the whole thing over to them. They paid me out and took action against the people who had been caught.
If Visa pay you then I would think they would do the same.
fwh
The Police caught the culprits and I got some of the gear back.
The insurance company required me to sign the whole thing over to them. They paid me out and took action against the people who had been caught.
If Visa pay you then I would think they would do the same.
fwh
A good point fwh.
I came across this situation last year - subrogation is the word that covers it.
It's a point to consider when foloowing-up a complaint with a tour operator (or similar body) having perhaps already claimed in part from the travel insurance company.
The honest claimant should check to see if monies need to be returned to the insurer (or possibly the credit/debit card issuer) once payment is recovered from the tour operator.
Mike
I came across this situation last year - subrogation is the word that covers it.
It's a point to consider when foloowing-up a complaint with a tour operator (or similar body) having perhaps already claimed in part from the travel insurance company.
The honest claimant should check to see if monies need to be returned to the insurer (or possibly the credit/debit card issuer) once payment is recovered from the tour operator.
Mike
Many thanks for the replies. I think that since this option is open to me, I will go ahead and pursue it through Visa debit.
I have been asked to sign a declaration that I have no objection to police involvement and that in the event of the transaction being proved to be valid I authorise them to re-debit my account.
They have also asked for copies of all correspondence between myself and the merchant/Receiver/Liquidator. In this case it would be the travel trust association who are not my personal holiday insurers but a trade association whose members operate trust accounts for the financial protection of people booking holidays. Ezy were a member of this organisation but defaulted on their membership and the trust account is empty.
Once again many thanks for the advice.
Kathy
I have been asked to sign a declaration that I have no objection to police involvement and that in the event of the transaction being proved to be valid I authorise them to re-debit my account.
They have also asked for copies of all correspondence between myself and the merchant/Receiver/Liquidator. In this case it would be the travel trust association who are not my personal holiday insurers but a trade association whose members operate trust accounts for the financial protection of people booking holidays. Ezy were a member of this organisation but defaulted on their membership and the trust account is empty.
Once again many thanks for the advice.
Kathy
Post a Reply
Please sign in or register an account to reply to this post.
Similar Topics
-
Refunds - Flyglobespan
Posted by joolz in General Holiday Enquiries, Hints and Tips
-
Custom Flight Refunds
Posted by suemog in Tour Operators and Travel Agents
-
ABTA amends rules on refunds
Posted by David in Tour Operators and Travel Agents
-
ABTA amends rules on refunds
Posted by David in Holiday Complaints
-
FLIGHT ONLY REFUNDS-VOLCANIC ASH SITUATION
Posted by nosivad in Flight Only / Airline and Airports