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Goldtrail Administration

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  • Goldtrail Administration

    Thousands of British holidaymakers were today stranded abroad following the collapse of a holiday firm.

    Around 16,000 people are trapped outside the UK and a further 2,000 due to fly to Greece and Turkey this weekend have had their holidays cancelled.

    British firm Goldtrail went into administration at 4pm yesterday, grounding planes with immediate effect.

    There is a great deal of misinformation regarding how to obtain a refund, if one can be obtained at all and how long it will take. If the customer paid with a credit card, then even if only part of the holiday was paid for, the full cost of the holiday may be claimed from the card issuer as the credit card company are equally liable under s.75 of the Consumer Credit Act 1974.

    For a credit card company to be liable, the cash price of the goods or service must be over 100 and under 30,000 and there must be a claim for breach of contract or misrepresentation against the supplier. It would appear that these conditions are satisfied therefore, customers will be able to make a claim against their credit card company. Section 75 of the Act makes a connected lender jointly and severally liable with any supplier for any breach of contract or mis-representation by the supplier. As above, the provisions apply to any single item to which the supplier has attached a cash price of between 100 and 30,000. Thus card issuers are potentially liable not only for the value of the card transaction itself but also the value of the item (if greater) and any consequential losses caused arising from the breach or misrepresentation.

    Thus, if a holiday cost 1750 and even if only 300 was paid as a deposit, then customers may still claim the full value of the holiday, not just the amount paid.

    The good news is, customers can withhold this sum when they come to pay off their next credit card bill, but they must provide proof that they have a valid claim against the supplier for breach of contract or misrepresentation, which in the case of Goldtrail is easy to quantify.

    Normally, a customer would pursue any claim initially against the supplier who is directly liable for any breach of contract or misrepresentation before withholding money from the credit card company, but since the supplier is in administration, customers may simply issue a claim against their credit card issuer, notwithstanding that they have the choice of which party to pursue in any case.

    Section 75 states (among other things)

    75. (1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
    In summary, customers are not obliged to pursue the tour operator, or ATOL, or their insurance company, administrators, liquidators or anybody else and their claim is not limited to the amount of the credit card transaction. Affected customers may claim for all losses caused by the breach of contract and this applies even if all they have paid so far is the deposit. Once the deposit is paid using a credit card, this gives customers the choice of claiming for the cost of the holiday and any consequential losses against the supplier of the holiday, their credit card issuer, or both. Nobody is entitled to double recovery however and will only be paid once. Since the tour operator has gone bust, customers should pursue their card issuers for refunds.

    The above applies to credit cards only, however Visa Debit cards are similarly protected under the Visa Debit Chargeback scheme, but claims must be submitted within 120 days of the failed transaction.

    Holidaymakers who have paid in cash will need to make claims via ATOL and will be subject to travel industry bonding arrangements, which can take considerable time.

  • #2
    Re: Goldtrail Administration

    my flights were with goldtrail paid for by credit card through hayes travel (961), the accomodation was paid on Maestro through flight line (533) and the hotel transfer was paid for by cc through flight line (94) . Can i apply for all these through the cc company? no fights are available so i can not take advantage of the accomodation - but was not booked a part of a package - all booked separately?

    Comment


    • #3
      Re: Goldtrail Administration

      Yes, although your card issuer will doubtless attempt to tell you otherwise.

      The Consumer Credit Act 1974 provides what is called "connected lender liability" and it is this which enables you to pursue the card issuer for breach of contract or misrepresentation when you use your credit card to purchase goods and services.

      Holidays fall into this category and for more details of breach of contract claims in particular with holiday companies, see this thread. Subject to Availability - Legal Beagles Consumer Forum In addition, for a longer thread on s.75 of the above Act, see here New Member Advice - Legal Beagles Consumer Forum which although it pertains to a gas fire, discusses the principles of how and when to make a claim under s.75.

      In short, recovering all your money can be done by making a claim against your card issuer for not only the value of the card transactions themselves, but also any consequential losses caused to you arising from the breach.

      Comment


      • #4
        Re: Goldtrail Administration

        thank you very very much

        this is exactly what i wanted to hear!!

        i will let you know how i get on.

        Comment


        • #5
          Re: Goldtrail Administration

          I just called my credit card company, who have said I need to speak to the CAA to claim and if the CAA won't pay then I need a letter confirming that.

          I need to claim consequential costs etc however for UK flights from my hometown to Gatwick etc - CAA are only paying for the lost flights.

          From the above, I gather I can decide who to claim from and would rather do it via CC company as it'll hopefully be quicker and I can claim the extra costs.

          Anything I can say to get them to accept responsibility and send me a claim form as they are refusing to do so until I've been down the CAA route.

          Thanks

          Comment


          • #6
            Re: Goldtrail Administration

            Guess what?

            Your credit card company are lying to you.

            See this link in post #3 above. All you need to know is there.

            Comment


            • #7
              Re: Goldtrail Administration then KISS

              Cetelco

              I wonder if you could help me with ref to the Goldtrail flights I lost and rebooked via thesame flight company again, and low and behold the new flights were KISS who also went bust a month later.

              I have been in touch with my CC company and they are trying to insist I follow the ATOL route and not pursue the CC. The flights were Atol covered and the flight company is still in operation. But this is the 2nd time I have lost flights with this flight company and now maxed up my CC awaiting money back. The flight company charge booking fees and CC charges each time and never offer to change us on to another flight so its just adding on expenses.

              What can I say or quote to the CC company to make them honour there obligation under S.75 rather than them try push me via ATOL route.

              Many thanks in advance

              Crystal clear

              Comment


              • #8
                Re: Goldtrail Administration then KISS

                Originally posted by crystal clear View Post
                Cetelco

                I wonder if you could help me with ref to the Goldtrail flights I lost and rebooked via thesame flight company again, and low and behold the new flights were KISS who also went bust a month later.

                I have been in touch with my CC company and they are trying to insist I follow the ATOL route and not pursue the CC. The flights were Atol covered and the flight company is still in operation. But this is the 2nd time I have lost flights with this flight company and now maxed up my CC awaiting money back. The flight company charge booking fees and CC charges each time and never offer to change us on to another flight so its just adding on expenses.

                What can I say or quote to the CC company to make them honour there obligation under S.75 rather than them try push me via ATOL route.

                Many thanks in advance

                Crystal clear
                Read this thread New Member Advice - Legal Beagles Consumer Forum and pay particular attention to posts 2, 4, 6 & 8.

                Do not be put off and do not accept the words of a call centre agent. I would write to your credit card issuer and inform them that you are seeking a refund, under s.75 of the Act and that they must recognise their obligation to refund you in full. Should they not comply within 14 days, issue a claim against them in the county court for the full sum, plus costs and interest.

                We can help you draft the particulars of claim.

                Above all, do allow yourself to be sidetracked and lied to. Give them 14 days, then sue if you have not been paid.

                Comment


                • #9
                  Re: Goldtrail Administration

                  Thank you for the reply and I have read the whole of suggested link you gave me.

                  I sent via fax all the documents to HSBC and I received a letter today stating they have tried but failed to contact me ( this is untrue as I have called display and no bank or witheld numbers have shown up on it since the fax was sent) .
                  I know they want me to contact them to say that they note the flights are atol protected and this is the route I should take and they will not look at my claim.
                  So I just wanted to be armed before contacting them of what i should state.
                  so how does this sound ?

                  Would I be correct in stating to the HCBC Bank CC that "I am aware I can claim via Atol but under the guidlines of Section 75 I do not wish to take that route as the flight company I booked with have failed to supply goods and services for which they have been paid in full. (regardless that they claim no reponsibility for the failed flights of Kiss as they were just agents so to speak)So i am claiming s.75 of the CCA 1974 more so in relation to parts contained in section 12. So on that note I will advise that I will allow 14 days for you to refund me in full the sum stated just below 1,000 or i will be left no option but to proceed with this matter via court "

                  Thanks again in advance
                  Crystal clear

                  Comment


                  • #10
                    Re: Goldtrail Administration

                    Well as they haven't actually contacted you, apart from the letter you've had today, which presumably just asked you to contact them, you can't be sure what they are going to say, can you? Although you are probably right. I would write back thanking them for their letter blah blah and asking them to confirm in writing whatever it was they wanted to contact you about. Remind them of your request for refund under S75 and tell them you look forward to their confirmation that your refund will be in your account by xxx date. Confirm that all communications should be in writing only. Make sure you point out that if they don't comply you will sue them.
                    Is no longer here

                    Comment


                    • #11
                      Re: Goldtrail Administration

                      Thank You Wendy
                      They did actually ring me this morning with ref to the claim. They say that I cannot claim from them as I need to claim via atol. I then told them I am aware of atol but I will not be pursuing that route to make the claim for my losses. He said I must. I said I must nothing I am making a claim under section 75 any yourselves are legally obligated to honour my claim. He then went on to say yes but you bought from another company Not direct with Kiss blah blah. As I then explained once again I purchased and paid in full for my flights to a company still trading or not and now they will not supply my the goods or services I paid them for irrelevant of the fact Kiss went bust. This is the same if I went to a dealership and bought a rover car then rover went bust the dealership dont want to repay me and I do not make a claim to there administators i claim back via section 75. Now please accept what I say I am claiming under section 75 . on that note he then turned round to say then you must get a letter from atol to say they are not going to pay. I said I must not as I am not making the claim via them but feel free to make the claim yourselves once you have credited my money back.
                      The long and short is now he is sending me a letter to get atol to sign ?

                      This is the point now I could do with some guidance. when the letter comes do i contact atol or reply back to the CC. what do I do or say from here on in.

                      And I hope what I said above was correct as they caught me off guard so to speak with them calling me and not the other way around.

                      Thanks
                      Crystal clear

                      Comment


                      • #12
                        Re: Goldtrail Administration

                        Sorry can't post for long as I'm at work and boss is in. I'm sure Cetelco will advise later. But basically you have got to get really tough with them, put it in writing in the strongest terms and don't take any crap. They are trying to give you the run around and avoid their legal obligations.
                        Is no longer here

                        Comment


                        • #13
                          Re: Goldtrail Administration

                          Send them a letter before action, giving them 14 days to refund you, in full, for all costs, expenses and losses associated with this and if they have not paid within that period, sue them.

                          Do you have the name of the person you spoke to today?

                          Finally, stop talking to them.

                          Comment


                          • #14
                            Re: Goldtrail Administration

                            Again thank you Cetelco

                            I didn't call them they called me and caught me off guard I agree. I gave a brief of what was said.

                            I am sorry to ask again but any idea what I should be drafting in this letter as I am not really legally minded as to the correct wording. I just went with what I had read on the previous link you supplied and still not sure that what I said was actually correct although I know the conversation should have been in writing ideally.

                            Also when I have whats to be written I do have there fax number and access to a fax would it be ok to fax my letter to them as i get a report after transmission ?

                            Crystal clear

                            Comment


                            • #15
                              Re: Goldtrail Administration

                              In your letter you basically needto say the same as you told them on the phone. Head it up Letter Before Action. Post a draft up on here first if you like and someone will give it the once over. Also, as well as faxing, send a copy Recorded Delivery. But if you send an LBA and threaten them with Court, you must be prepared to actually file at Court.
                              Is no longer here

                              Comment

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