Thomas Cook direct debit warning to prevent it from being recorded as a “missed payment”
Hundreds of thousands of holidaymakers today found out that their vacations would not take place due to the business collapse – here’s what to do if you’ve ever booked a Thomas Cook vacation
Vacationers today woke up to find that iconic travel brand Thomas Cook has entered administration.
The news will affect hundreds of thousands of consumers who now urgently need to know their rights.
“If you have booked a vacation package with Thomas Cook, you will be protected by ATOL and therefore you will receive all your money,” explained consumer lawyer Dean Dunham.
ATOL, which stands for Air Travel Organiser’s License Scheme, is the UK’s financial protection program.
It will provide support in the event of a collapse – and ensure that the vacationer is not in financial loss or without assistance.
“In most cases ATOL will not protect you for flight bookings only. However, you will be covered in some cases if you do not receive a valid airline ticket after paying for the flight. “
If you are affected by this, here are your rights to flight refunds only.
If you are not covered by ATOL, you may be covered if:
I) You paid by credit card – because you can make a claim under Article 75 of the Consumer Credit Act.
If this applies to you, just contact your card provider and tell them you want to apply under Section 75.
The price of the goods or service must be over Â£ 100 so there should be no issues with Thomas Cook claims.
ii) You paid by debit card – as you can claim under the âchargeback regimeâ.
This is similar to a Section 75 claim, but it is a voluntary program to which all debit card providers have subscribed.
There is a time limit for chargeback claims – typically 120 days from the date the transaction was processed, or from when you expected to receive the goods / services if delivered.
iii) You have travel insurance – because you can be covered.
You should check the terms of the policy immediately and, if in doubt, call your supplier. See our guide on this, here.
Conditions of withdrawal
Those who still pay their next vacation through the Thomas Cook direct debit system will also need to know what their rights are today – now that the company has gone bankrupt.
âIf you still have payments to make, you should contact your bank and immediately cancel the direct debit,â Dunham explained.
âUnfortunately, it is very unlikely that you will get your money back if you only booked one flight – so refer to the tips above,â he added.
If you paid for a vacation package or hotel, cancel immediately and Atol will refund you.
“Thomas Cook customers who paid by direct debit will be fully reimbursed under the ATOL protection scheme,” a Bacs spokesperson told Mirror Money.
However, be sure to keep all traces of evidence.
It’s worth trying to contact Thomas Cook first, just to let them know that the direct debit payment has been stopped.
Keep all call logs as this will protect you in the event that administrators contact you with a “missed payment”
A missed payment can leave a mark on your credit report, which could make it look like you haven’t fulfilled your obligations on some type of debt.
When you contact your mortgage company bank, let them know about your situation and they can advise you on the best way to handle it.