Martin Lewis warns THOUSANDS could miss out on Lowcostholidays refunds as deadline looms
If you paid by debit card then you need to make a claim ASAP as time is running out for some people
THOUSANDS of people could miss out on getting a refund if they lost cash when Lowcostholiday went bust.
Customers of the travel firm who paid by Visa or Mastercard debit card for their holiday may have just over six weeks left to make a claim to their bank under the Chargeback scheme.
Many customers do not know there is a cap on when claims for debit card refunds can be made, Martin Lewis, founder of MoneySavingExpert told The Sun Online.
Lowcostholidays stopped trading in July leaving over 140,000 customers out of pocket.
This also included 27,000 people who were already abroad when the administrators were called in.
Lowcostholidays didn’t have an Air Travel Organiser’s Licence (ATOL) - which protects package holidaymakers in the UK when firms go out of business - because in 2013 it moved its business to Spain.
Initially, customers who booked both a flight and hotel were told to try and reclaim from the Spanish local authority, called Govern de lles Balears, which regulates the Lowcostholidays.
However, many have now had success claiming back money from their bank or credit card provider.
Under Chargeback rules you complain to your bank or card provider and they will chase Lowcostholidays bank for the money.
The rules vary depending on what type of card you have
Mastercard users have up to 120 days to make a claim from when their holiday was due to start or they found out about Lowcostholidays collapse.
While Visa card users have either 120 days, depending on when they booked their holiday and were due to travel.
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However, there is an overall cut off of 540 days from the date of booking, meaning if your holiday was booked before 6 April 2015, you wouldn't be able to claim now.
However, if the holiday was booked very far in advance but the company did not go bust until you were on holiday then you might have up to 540 days to make a claim.
The rules are very complex, so it’s worth checking with your bank or card provider on the exact time limit that applies to you.
American Express does not specify time limits to its customers. It did not respond when we contacted it to clarify the rules.
Despite rules differing depending on the type of card you have - Visa, Mastercard or American Express - claims are still made through your bank.
We’ve had hundreds of people get in touch to say that they’ve got their money back through Chargeback but my concern is that there could be thousands of people who didn’t know about this route
Martin Lewis
If you paid via PayPal then you have 180 days to make a claim under its buyer protection scheme.
How long do you have left to make a claim
The firm went into financial trouble, with emails sent out to customers, on July 15.
This means that banks may start to impose time limits on when customers can file claims from November 12 2016 - just over six weeks away.
Those who paid over £100 (and under £30,000) using a credit card are able to claim back from their provider under Section 75 of the Consumer Credit Act.
It means that your credit card provider is liable to pay you back the cash.
Under these rules there is no time limit on when you can make a claim.
Although, if you needed to challenge it the the courts then the law might put a cap of six years in England and five years in Scotland, under something called the “statute of limitations”.
Martin Lewis, founder of MoneySavingExpert.com, told The Sun Online: “We’ve had hundreds of people get in touch to say that they’ve got their money back through Chargeback but my concern is that there could be thousands of people who didn’t know about this route.
“There are time limits on this scheme and we are starting to get close to them. The most important thing is that people put their skates on and put in their claim.”
How do you make a claim for a Lowcostholidays refund?
There are a number of ways to try and get your money back if you lost out because of the collapse. Here are a few you can try...
- Chargeback. A customer service guarantee for purchases on Visa, Mastercard and American Express cards. Write to your bank and ask for them to reclaim the cash for you.
- Section 75. This is part of the Consumer Credit Act. It gives you legal protection on purchases over £100 made on credit cards. You need to claim via your credit card provider, stating the reason.
- PayPal. If you paid via PayPal, then you’re covered by its buyer protection scheme - but you must do this within 180 days of paying.
- If you booked a flight and hotel together. The administrators have told customers to claim via the Spanish regulator - see more information on its .
For more information see the guide to reclaiming on the .
Are banks delaying Lowcostholidays refunds?
Today, we have published the story of Rachel Wilson, 31, from Chesham, Bucks, who has been trying to claim back the £880 she lost.
It wasn’t until The Sun Online got involved that Barclays paid her cash back.
The bank said that it has received a "high number" of queries from Lowcostholidays customers and admitted that the delay to repaying the money has been "unacceptable".
She is not the only one. We’ve received a number of emails from Lowcostholidays customers who are still waiting for their money back, despite filing the relevant claims.
Are you one of them? If you're still waiting on a refund let us know! Email Tara.Evans@The-Sun.co.uk
