Uncollectible Account receivables from Expedi

[jc114]

Hello all, my apology for a lengthy post. I operate a small independent guest house bnb and have listed ourselves on Expedia platform. We are having issues in collecting some of the receivables from Expedia that would like some advices please.

Here is how a usual cycle works:
Guest pays Expedia directly at booking and after guest checked out, hotels will submit a payment request to each booking manually to collect the net fund back from Expedia .

So in our case, we have got a few bookings back in 2022 totalling of approx £4000, which we have not collected from Expedia as I was unable to participate in work for a month due to personal matter at the time, and unfortunately I did not realise these uncollected funds after Im back at work so therefore these monies during my absent were left uncollected until our accountant was closing our year end account last month and found out from discrepancies when reconciling.

We immediately submit a payment request to these bookings but was rejected due to exceeded period. After some liaising and escalations to and forth, Expedia still refused to pay us back anything as they said there are fine print in the contract saying that they have no obligation in paying out anything after 365 days.

Obviously, we have fulfilled these bookings and paid our overheads, and have also paid the corresponding VAT to HMRC already back in 2022, not receiving any of these monies would mean our losses is even greater than this amount. I have a few questions that would like to get some advices from you guys please.

- As normal route does not seem to get us anywhere, if we are considering to issue a letter before action and follow with a small claim court case, how should we accurately identify the correct defendant as Expedia has so many different companies dealing with different areas? Does expedia has an obligation to provide this info at all? I saw some other previous occasions here from other members that Expedia has came back saying that you are suing the wrong entity and ending up wasting time doing the process.
- ⁠We were also told by Expedia that we do not need to pay the corresponding VAT if we did not receive any monies from these bookings, but as far as Im concerned, these bookings (accommodation services) have literally happened, if we dont need to pay VAT, there has to be someone still liable to it, is it that Expedia has to pay VAT instead if we cannot get back anything eventually? or they can simply get away with it by claiming that they are only an agent acting blablabla?
- ⁠apart from small claims route, any regulatory bodies in the UK that can potentially be helpful to small businesses like us as Im not aware of anyone that can regulate these OTA channels?

Even chances are uncertain, I think I will still work on this and try my best to get my hard earned money back, any advices would be much appreciated, many thanks

[PallasAthena]

Please can you post here the exact wording of the 365 days condition that Expedia are relying on

[atticus]

"Expedia" appears to be a US based corporation - https://www.expedia.co.uk/lp/b/legal_information.

That said, I have found this page - https://www.expedia.co.uk/lp/b/terms-of-service - which suggests that payment for accommodation in the UK is taken by Travel Partner Exchange UK Limited.

You should find your agreement with Expedia, firstly to identify exactly which company you have a contractual relationship with. If this 365 day time limit is stated in there, then you would have to challenge it as an unfair contract term. It does seem unreasonable that they can take payment in full but claim not to have to account to you. I bear in mind that in England and wales the limitation period for bringing a contract claim is 6 years.

[jc114]

Thank you for the replies

Here are the exact wordings as quoted from the hotel partner agreement

...If you do not charge the relevant single-use credit card or payment request Expedia in accordance with this Section for all amounts for an Expedia Collect Booking within 12 months of the date after check-out, cancellation or no-show, then neither Expedia nor the guest will have any further obligation related to such booking. You will apply each payment received to the specific payment request being paid, and you will not apply any payment received to any other payment request amount or amount otherwise due. Expedia may make changes or updates to its payment system, payment methods, and invoicing system or requirements at any time...


We usually receive payment from a company named TRAVELSCAPE LLC, which apparently has a UK bank account (by checking sortcodes from the BACS with my bank), but seems to be a US company when googled, will look into my contract again to find out more as to who the exact party is that we have the agreement with, but I reckon could be multiple parties still tho.

I am also aware that as mentioned in the contract, this contract is governed by the English law, so I will go back and dive myself deeper into understanding the relevant contract claim period in the UK before actioning further, many thanks for the replies once again

[JK2054]

Your claim period would be 6 years for UK BOC claims.

Your claim here would be against expedia. Travelscape would just be their partner but they have nothing to do with the contract.

I see you are concerned about naming the Defendant. As its a small claim, and provided that expedia received the court papers and defend the claim, then if they say the wrong name is used, you can ask the court to amend it on the grounds that you sued the wrong company, but that they got the papers and could defend the claim.

Small claims court is fairly informal and such amendements are almost always allowed.

You would need to send the LOC to an address for the Defendant. It's best to use an address that has assetss if you can find one, so that if needed you have the ability to enforce a default CCJ should you get one.

[jc114]

Thank you for the reply.
I have managed to find the counter party of Expedia in which we have the agreement with and it is a Swiss company called Expedia Lodging Partner Services Sàrl. We have sent a Letter before action to this Expedia company via email to begin with, based on the fact that relevant claim period should not be just 12 months, I will update any latest here once we have got an update.

[JK2054]

You should sent the LOC by paper mail.

[jc114]

You should sent the LOC by paper mail.

Got it! Thanks, will post another hard paper copy by post tomorrow

[jc114]

Hello all, sorry for topping this older post as there have been new updates to the same case that I would like to seek further advice please.

Following the Letter before action issued to Expedia, we have received a response from Expedia that they stood with their decision of not issuing any of amount due to the 365 days claim period stated in the contract has passed, there were no responses as to the Six years claim period for creditors mentioned.

It is somehow expected for these standardised safe response from a large corporation, we will now proceed with submitting the case to the Small claim court. As the amount is just over £4,100, I think it is sensible to do it on our own without appointing professional services as the fee will simply become disproportionate. But before proceeding, may I please get some advices on the following few points just to make sure I am on a right track.

1. As the counter party on the contract is located in Geneva, Switzerland, I am aware that I cannot use the online service but to fill out the N1 & N510 paper form. As we have signed the contract with Expedia using our company, am I correct that the claimant is to be my company "XXX Limited", and I will then sign the form on the company’s behalf as the Director representing the company? Do my name has to be appear in the claimant field (i.e. Mr XXX on behalf of XXX Ltd) or just the company name?
2. When being asked in the N1 form about the Brief details of claim and Particulars of Claim, is it necessary to mentioned that I am submitting this case based upon the statute of limitations for creditors of the Limitation Act at all or I should just focus on documenting the case itself?
3. Lastly for the N510 form, as the contract with Expedia has clearly stated that the agreement is governed by and shall be construed in accordance with English law without giving effect to any conflict of law principles. Am I correct that I should be ticking the box in Part 2 where it says “In proceedings to which CPR 6.33(2B) (b) or (c) applies, the statement is: “I state that each claim made against the defendant to be served and included in the claim form is a claim made pursuant to or in respect of a contract which contains a term to the effect that the court shall have jurisdiction to determine that claim.”?

Many thanks again for your advice

[atticus]

q1. Company name.

q2. I do not understand your question.

q3. There is a difference between a clause that specifies the governing law of the contract and a clause which specifies jurisdiction. Does this contract contain a term giving the courts of England and Wales jurisdiction? It seems likely, but you need to check.

[jc114]

q1. Company name.

q2. I do not understand your question.

q3. There is a difference between a clause that specifies the governing law of the contract and a clause which specifies jurisdiction. Does this contract contain a term giving the courts of England and Wales jurisdiction? It seems likely, but you need to check.

Yes, upon checking, it says in the contract that,

…Each Party consents to the exclusive jurisdiction of the English courts for all disputes arising out of or relating to this Agreement …

So it should be the case.

Thank you for the reply❤️

[JK2054]

Hello all, sorry for topping this older post as there have been new updates to the same case that I would like to seek further advice please.

Following the Letter before action issued to Expedia, we have received a response from Expedia that they stood with their decision of not issuing any of amount due to the 365 days claim period stated in the contract has passed, there were no responses as to the Six years claim period for creditors mentioned.

It is somehow expected for these standardised safe response from a large corporation, we will now proceed with submitting the case to the Small claim court. As the amount is just over £4,100, I think it is sensible to do it on our own without appointing professional services as the fee will simply become disproportionate. But before proceeding, may I please get some advices on the following few points just to make sure I am on a right track.

1. As the counter party on the contract is located in Geneva, Switzerland, I am aware that I cannot use the online service but to fill out the N1 & N510 paper form. As we have signed the contract with Expedia using our company, am I correct that the claimant is to be my company "XXX Limited", and I will then sign the form on the company’s behalf as the Director representing the company? Do my name has to be appear in the claimant field (i.e. Mr XXX on behalf of XXX Ltd) or just the company name?
2. When being asked in the N1 form about the Brief details of claim and Particulars of Claim, is it necessary to mentioned that I am submitting this case based upon the statute of limitations for creditors of the Limitation Act at all or I should just focus on documenting the case itself?
3. Lastly for the N510 form, as the contract with Expedia has clearly stated that the agreement is governed by and shall be construed in accordance with English law without giving effect to any conflict of law principles. Am I correct that I should be ticking the box in Part 2 where it says “In proceedings to which CPR 6.33(2B) (b) or (c) applies, the statement is: “I state that each claim made against the defendant to be served and included in the claim form is a claim made pursuant to or in respect of a contract which contains a term to the effect that the court shall have jurisdiction to determine that claim.”?

Many thanks again for your advice

1) you do it as your company BUT see if there is an expedia address in UK as that will be easier, international service is very difficult.. I've seen people sue expedia in SCC so there must be a uk address

2) no it doesnt matter.

3) UK has jurisdiction yes, but try to find a UK address to serve on as that will be easier and expedia will still get the papers.

[jc114]

1) you do it as your company BUT see if there is an expedia address in UK as that will be easier, international service is very difficult.. I've seen people sue expedia in SCC so there must be a uk address

2) no it doesnt matter.

3) UK has jurisdiction yes, but try to find a UK address to serve on as that will be easier and expedia will still get the papers.

Thanks for your reply.

Yes there surely is a UK address and a UK entity for Expedia, and I also agree it will be much easier for the whole process to stay within the same country.
But as per the hotel partner agreement, the counter party stamped at the end of the agreement is a Swiss company with an address in Geneva.Switzerland, if I put a UK address to this Swiss company as the defendant, will there be a potential risk that I will end up suing the incorrect entity (as that particular UK address belongs to a different company although they are clearly of the same group) and result in a more complicated process after?
Or if the address there is serving as the purpose of correspondent and therefore it doesnt matter?

Thank you

[JK2054]

you just have to serve the papers to an address where they carry out operations
if they can defend the claim then clearly they carry out operations
SCC is very informal so amendments are fairly easy.

[jc114]

Hi all, another progress update on this case, hope thats OK to post some new questions.


1. My SSC was filed online on 11/6, and on the gov.uk money claim portal, it says the defendant has to respond by 1/7 4pm. On 28/6, I have received an email Cc to me which is sent by a third party company claimed to be the legal representative of the defendant, and have attached in the email the N9 form with the box "I intend to defend all of this claim" ticked. However, when I login today to the HM portal, the case status has now changed to "The defendant has not responded to your claim. You can request a County Court Judgment against them.". Will this possibly be due to the time lag updating the status on the system? What will happen if I go ahead and hit the button to request for a CCJ?

2. In regards to the "I intend to defend all of this claim", I have seen online that it is usually used to extend the response time to 28 days, anything I should do at this point at all or I should expect they will file a defence soon that I will also receive?


Many thanks again for the help