Lowcostholidays collapse: Holidaymakers could still get money back after company went bust
Holidaymakers who face the prospect of their trips being wrecked because their travel company went bust might still be able to get their money back, it has emerged.
Low Cost Holidays Group went into administration on Friday, leaving a large chunk of their 27,000 customers on holiday stranded and damaging the prospect of a further 110,000 going away.
But an industry expert said people who paid for their holiday with a credit card might be able to get a refund from their card provider because they are jointly liable with Low Cost.
Travel expert David Ross, from AskCiindy.com, said: "When companies like Low Cost Holidays go into administration it has a huge impact on the customers that are let down.
"What's worse with this situation is that package holidays booked through ABTA registered agents are protected under the ATOL scheme, which steps in when a holiday firm goes bust to make sure customers don't lose out. However, Low Cost Holidays was not part of this scheme and so their customers will not have this protection.
"Most travel insurance policies will not cover costs incurred if a travel firm fails but some of the better policies on the market do.
"Check with your insurer to see what cover you have and what help they can give you."
Danny Loundes, from Walsall, said he had booked a room with the company for a holiday on the Costa del Sol with his partner just two days before it went into administration.
Money was taken from his bank account a day later.
He added: "We booked our hotel through them Wednesday, spoke on the phone to Low Cost beforehand who told my partner to hurry booking as there were only a few rooms left. I booked straight away and they took money from my account on Thursday, then on Friday they went into administration."
Mr Loundes claimed that the hotel he had booked had no record of his reservation and that it had offered to accommodate him – but at double the price he was originally asked to pay.
Mr Loundes added: "I've checked the email from Low Cost Holidays and they hadn't attached the accommodation vouchers like the email says should be attached.
"So they took the money a day before and didn't contact the hotel to register our booking and didn't send us any vouchers to give them either."
He said he was aware of another man, in Magaluf, who had been close to being thrown out of his hotel because of the operator's collapse.
But relatives sent him money which meant he could stay there.
Anyone worried their holiday might be affected can visit the lowcosttravelgroup website, www.lowcostholidays.com
