ABTA pre-arbitration offer

[deedee83]

I have recently entered in to pre-arbitration via ABTA to seek compensation for a holiday that was not as advertised/sold. I've had an offer from the holiday company which is less than I'd hoped for. If I refuse the offer will this be the end of pre-arbitration or is it possible that another offer would be made? In the email making the offer the company representative states that I could be liable for their legal costs if i take the case to arbitration, but as I understand from the information given on ABTA's website this is not the case. I therefore feel that they are trying to bully me in to accepting this offer. Does anyone have any experience of the process? Also, if I was to refuse the offer can I change my mind before going to arbitration? Many thanks in advance for your help and advice.

[Dazbrad]

Re: ABTA pre-arbitration offer

You will be arguing under a piece of legislation called the 'Package Travel, Package Holidays & Package Tours Regulations 1992' (PTR).

Its hard to determine whether there is an alteration of an essential term, eg hotel didnt have a pool, or an excursion never happened. Or whether it was a collective of smaller issues eg hotel was abit grubby, unlike the advert described and shown.

As the holiday has been taken you will be seeking compensation, the level of which would depend on the severity of the misdescription.

You do not need to accept any offer made by the trader, simply keep it open. However a trader is free to withdraw this offer at anytime unless you can prove you have accepted it already. This is best proved on paper, not verbally.

If you refuse an offer, a trade may not offer it again. So consider your actions first.

You can always rely on ABTAs decision as to what they feel is a reasonable level of compensation. But beware, this could be less than the trader is offering. It could also be higher.

Consider simple calculations which take into account the severity of the misdescription and then decide whether a grubby hotel deserves the cost of the flight and hotel back. Is that reasonable given the circumstances? Sometimes it maybe reasonable, depends on the given description.

If you do not agree with ABTAs decision you can appeal the decision in court. Unless something big has been overlooked, its unlikely that a judge will undermime a decision though.

As the trader is making an offer, it could indicate that the trader is accepting some liability. Do you have clear evidence of the misdescription? If so, good.

If you lose your case, you may incur some costs. Speak to ABTA and ask if they charge for their services. Im sure they dont but if they do, you will have to pay this if you lose.

If they charge for their service, ask ABTA to also consider this cost in your claim.

If you loose, they may have a small legal team which cost you may have to cover - only ABTA or a judge can decide.

As for what you should do with the offer, only you had the experience. Words cannot descibe that.

[judgemental24]

Re: ABTA pre-arbitration offer

Like most financial offer settlements does not mean the respondent is accepting any responsibility. Most settlement consent order have that clause that any offer is made without accepting any liability

They are simply looking at this on an economic basis.

How much management time to instruct a solicitor and any possible attendance at court. That will far outway the cost of any claim settlement for redress and any associated court costs, expert witness etc

If the offer is in the region of 75% of what you are asking as settlement then you need to seriously consider that option. If you lose any claim the respondent can put that offer of settlement to the court when deciding if any negative costs are applicable

[Dazbrad]

Re: ABTA pre-arbitration offer

I will emphasise that I only said "could indicate". But yes, resources are better spent elsewhere in the business, and most certainly better off trying to settle out of court.