Thomas Cook goes bust – your rights for cancelled holidays and how to get a refund
THOMAS Cook has ceased trading with immediate effect after collapsing overnight – here’s what happens next for holidaymakers stranded abroad and those who have trips planned.
The world’s oldest travel firm, which had been operating for 178 years, was unable to secure a rescue deal after failing to pay the £200million bill it owed to creditors.
Its collapse means around 150,000 customers will need to find an alternative way home, while thousands more face uncertainty with upcoming trips.
Thomas Cook honeymooners stranded in Mexico are among the holidaymakers stuck abroad, as well as families and the elderly.
Britain's largest peacetime repatriation is now underway with the Department for Transport (DfT) saying stranded customers will be brought home as close to possible to their booked return date.
Thomas Cook said in a statement: "Thomas Group plc continued to engage with a range of key stakeholders over the weekend in order to secure final terms on the recapitalisation and reorganisation of the Company.
"Despite considerable efforts, those discussions have not resulted in agreement between the Company’s stakeholders and proposed new money providers.
"The Company’s board has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect."
Read our Thomas Cook live blog for all the latest news and updates
What happens next now Thomas Cook has gone bust?
The Civil Aviation Authority (CAA) has launched one of the largest ever rescue operations to get customers home.
It said: "We know that a company with such long-standing history ceasing trading will be very distressing for its customers and employees and our thoughts are with everyone affected by this news.
"The Government has asked the UK Civil Aviation Authority to launch a repatriation programme over the next two weeks, from Monday 23 September to Sunday 6 October, to bring Thomas Cook customers back to the UK."
But the CAA warned: "Due to the significant scale of the situation, some disruption is inevitable."
The watchdog added in a statement that it "will endeavour to get people home as close as possible to their planned dates".
Hiring the aircraft is set to cost the taxpayers millions of pounds.
However, your rights to getting home without having to fork out extra on another flight depends on what type of holiday you booked.
If you've booked a package holiday and you're abroad
Packaged holidays are ATOL-protected which means if a company goes bust, your money should be covered.
So Thomas Cook customers that are currently abroad on a package holiday should get an alternative flight booked for them.
You'll need to contact the company you booked your package holiday with and the CAA to arrange this.
The CAA is advising Thomas Cook customers to for more information.
Customers should also check the page for information on new flights back to the UK.
The repatriation programme is only available for passengers whose flight originated from the UK and it will only be operating for the next two weeks (up to and including Sunday 6 October).
After this date you will have to make your own travel arrangements.
If you are asked to make a further payment to stay in your hotel, contact the CAA immediately as it should cover the cost.
For more information on finding out if your trip is ATOL-protected, .
A CAA service to manage all ATOL refunds will be set up by Monday 30 September and customers can get updates on .
How do I know if my holiday is ATOL protected?
WHEN you book a holiday, the ATOL holder or their agent must give you a certificate confirming you are ATOL protected as soon as you hand over any money - including a deposit - for a holiday or flight.
Make sure you obtain and keep all the relevant paperwork in case you need to make a claim.
But be aware, the protection only covers British-based firms, so it's vital to check. When lowcostholidays went bust in 2016, customers weren't protected by ATOL because the company had moved to Spain in 2013.
Some travel companies display the ATOL logo on their websites even though they don't offer financial protection.
To check it's genuine, look for a number on the logo and check it out on the CAA's website.
You should be wary if the travel provider has no ATOL number, or if the number doesn't have four or five digits.
If you aren't sure about the website, don't book through it.
Another key term Brits should be aware of is ABTA. While ATOL protects flight-based packages, ABTA protects everything else such as cruise or self-drive trips.
If you've booked separate flights and accommodation and you're overseas
Flights and hotels booked separately are less likely to be financially protected by ATOL.
This means you'll have to buy your own replacement flight to get home and stump up the cost yourself - although you may be able to reclaim it from your insurer depending on your policy. See below for more information.
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If your hotel isn't covered by ATOL
Thomas Cook accommodation that isn't ATOL-protected is covered by ABTA.
In this case, you'll need to pay any outstanding charges on your hotel room and then claim the money back through ABTA.
Just make sure you keep your receipts - you won't be able to make the claim without them.
If you cannot afford to pay what the hotel is asking, or if you're worried about the amounts being asked for, call the ABTA emergency line on 0330 135 9665.
The team will evaluate claims on a case by case basis and help you if you're stuck.
If you've yet to travel
Your first means of action is to find out if you trip is still going ahead.
You'll need to contact Thomas Cook's tour operator or agent, the company you booked your trip with, your accommodation provider and your airline.
If your holiday is ATOL-protected then you will received a full refund, but you will likely need to rebook your trip with another company.
Customers covered by ATOL will need to contact the CAA and wait for the money to be returned.
If you're not ATOL-protected, you'll either need to get your money back via your insurer (see below) or from your card provider if you paid on card.
Credit card customers should try claiming back any extra costs via Section 75 of the Consumer Credit Act.
The refund you're claiming for must be between £100 and £30,000.
To make a claim, contact your credit card provider.
Start by contacting its customer services team and tell them you want to make a claim under Section 75.
If you paid for your flights by debit card (or by credit card and the cost is under £100) then you might be able to claim under chargeback rules.
You must do this within 120 days to get money back, but unlike Section 75, this is not a legal requirement so there's no guarantee you'll be covered.
Holidaymakers who are still paying for their holiday through Thomas Cook's direct debit scheme are advised to speak to their bank directly.
NatWest is advising customers to cancel any future payments and a refund will be issued automatically by ATOL for payments that have already been made.
Halifax, Lloyds, Santander, HSBC and RBS are encouraging customers to submit refund claims to their card provider.
If you have travel insurance
If you have travel insurance, it might cover your money depending on the type of cover you purchased.
You'll need to check what your cover says regarding Scheduled Airline Failure Insurance (SAFI) and End Supplier Failure.
SAFI is flight coverage only while End Supplier Failure will include certain other costs as well, depending on your policy.
End Supplier Failure will cover costs for hotels or airlines if they go bust, such as non-refundable hotel and travel bookings.
Most insurance policies will have an exclusion if financial failure is already known, so don't attempt to buy travel insurance now to ensure your Thomas Cook holiday is covered.
If you have a Thomas Cook gift card
Unfortunately all Thomas Cook gift cards are now void so you cannot spend them to book a holiday.
While no means a guarantee way to get your money back, customers will need to register as a creditor to try and reclaim the voucher amount.
The Insolvency Service told The Sun that more information on how to register as a creditor can be found on the website.
If you've already booked a holiday using your gift card, it then falls down to the same rules as mentioned above.
Any package holiday that is ATOL-protected comes with financial protection to get your money back.
While if it isn't, you might be able to claim back through your bank or credit card issuer, as stated above - although claiming for gift card purchases is a grey area.
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