Collapse of Low Cost Travel Group proves protection can be priceless
The collapse of Low Cost Travel Group underlines the risks all tourists face when booking a trip.
AROUND 27,000 of its customers are currently overseas on holiday and more than 100,000 have holidays booked, but many will receive no compensation at all.
Money.co.uk’s Hannah Maundrell says their losses could run into thousands of pounds and that the collapse underlines the importance of booking a holiday with ATOL or ABTA protection.
“Unfortunately, Spanish-based Low Cost Travel Group is not ATOL protected, which means customers are not automatically entitled to a refund or replacement break.”
Customers are not automatically entitled to a refund or replacement break
Affected travellers should check their travel insurance as some will pay out for a holiday firm collapse, but many will not.
However, there may be other options for getting your money back. If you booked your holiday using a credit card, even if you only put down a deposit, you could be in line for compensation.
Maundrell says: “Credit card companies are jointly liable for purchases between £100 and £30,000 under Section 75 of the Consumer Credit Act.”
If you paid on a debit card make a Chargeback claim through your bank to see if it can claw back the money, while if you paid via PayPal raise a dispute.
The Association of British Insurers suggests contacting the company’s administrators Smith & Williamson LLP at lowcosttravelspain@smith.williamson.co.uk, although the accountancy firm has warned that travellers could get only a few pounds back.
Maundrell adds: “If you booked via an ATOL-protected travel agent who used Low Cost Travel as a supplier you might be able to go to them for a refund or to rebook.”
Regardless of how you intend to claim, make sure you keep receipts for all your expenditure.