business Essential news, comment and analysis


Can Lowcost’s customers bank on cards for refunds?


AGGRIEVED CLIENTS LOOKING TOCARD PROVIDERS TO REFUND LOWCOST BOOKINGS MAY BE DISAPPOINTED. IAN TAYLOR REPORTS


Consumers hit by the collapse of Lowcost Holidays will largely depend on card providers for refunds, but there is no certainty they will get their money back if they booked by debit card.


Lowcost Travel ceased trading on


July 15 with financial protection for almost 300,000 customers of Lowcost Holidays provided by a €1.3 million bond lodged with the Balearic Islands government. The company quit the UK


72 travelweekly.co.uk 28 July 2016


Atol scheme in 2013, leaving consumers unprotected by the Air Travel Trust fund, which underwrites Atol and stood at £139 million in March. Lowcost’s administrators say consumers can expect no more than about 1p in the pound on what they are owed from the Balearics bond. The Lowcost website last week


advised customers who booked holidays to check with their travel insurance provider first, then with the Balearics and then with their


credit card provider. Those with accommodation-only have been told to check with their insurer or credit card provider. However, few insurers are likely


to pay out, with Abta warning: “Most standard travel insurance policies do not include travel organiser failure.” Claiming on cards is also not


straightforward. The UK Cards Association suggests consumers are more likely to have paid by debit than credit card – data for the 12 months to March shows 60% of online travel transactions in the UK were by debit card – and refunds on debit-card payments are voluntary. Bookings by credit card are


CONTINUED ON PAGE 70


PICTURE: SHUTTERSTOCK


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76