Legal experts from travel law specialist Travlaw shed light on a wide range of issues faci


Statutory demands: ‘Be sure to act within 21 days but don’t panic’


Travel companies should be aware of a “shocking” rise in statutory demands from customers chasing refunds. A statutory demand for payment is


sent by a creditor and gives the receiving company 21 days to pay or settle. If the company fails to do so, it risks facing legal proceedings to be wound up. Travlaw associate solicitor Krystene


Bousfield urged agents not to panic upon receipt of statutory demands, but said such demands “had to be taken seriously”. “Quite shockingly, we’ve seen quite


a few [statutory demands against travel companies] in the past few weeks – more than I thought we would,” she said. “You can’t just ignore it and hope it will


go away. You have 21 days to either pay, come to an agreement or formally dispute or attempt to set aside that demand. So it’s really important that you look at the date on the statutory demand, and address it within those timescales.” Bousfield pointed out that statutory


demands are typically sent to companies’ registered office, so urged those working from home during lockdown to have someone go to the office to check post as a matter of precaution. Despite the rise in statutory demands, Bousfield said agents “shouldn’t need to panic too much” because customers tended to use them “for the wrong reasons” and it could be “very expensive” to instigate a winding-up order.


Travlaw’s Ami Naru, Matt Gatenby (both top deck), Krystene Bousfield and Stephen Mason, with Travel Weekly’s Lucy Huxley (centre)


YOUR LE QUESTI ANSWE


Q&A


Travlaw experts answer questions from Travel Weekly readers


12 21 MAY 2020


DEPOSIT CLAIM Q. If a customer does not pay a balance, and the operator cancels the holiday, can the customer claim their deposit back? Mason: It really is a question of timing. If at the time the customer cancels there was a realistic flicker of hope the holiday could still take place, then they are not entitled to that [refund] even if subsequently it turns out that the holiday couldn’t go ahead.


CHARGE FOR REFUNDS Q. If an agent inserts terms to allow it to charge to deal with a refund situation – such as where a package travel organiser


cancels a holiday, meaning the customer is due a refund – does that create a conflict of interest? Gatenby: It’s tricky because agents have that relationship with and duty to customers. But at the same time they are agent for the organiser, so they have a very definite obligation to them as well. Obviously, you want to try to minimise the amount of tension between those two situations. It depends on a couple of things. Are you acting as an agent for a regulated package or just one element, say a flight? You’ve got to be careful there as an agent. You have to try and work with your various business partners in travel to make


sure that what you’re saying is not going to conflict with what they’re saying, otherwise it could lead to trouble.


RETURN TO WORKPLACE Q.Would I be forced back to work if members of my household are vulnerable? Naru: The thing to do here is enter into dialogue and discuss it with your employer. Ask what measures they are putting in place. Do those reduce the risk? If, as an employee, you don’t have reasonable grounds for not coming into work, you may end up in disciplinary territory. I think there are going to be quite a few cases where individuals have


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