CUSTOMERS of failed Low Cost Travel Group are likely to receive just £7.50 each compensation, according to the administrators. The Palma-based company had lodged a bond of only €1.3 million (£1.09 million) with the Spanish travel agency regulator, even though it had a turnover of approximately £500 million a year
Finbarr O'Connell, of administrator Smith Williamson, told The Times that potential claims from customers could be more than £50 million. ‘There are about 140,000 customers we believe have lost out. Sadly this means there will be very little back for any claim.’
He said compensation will be paid to claimants on a pooled basis so everyone will get back about 1% to 2%. The company, which was not ATOL-bonded, has been criticized for sending e-mails offering customers large discounts to book hours before it collapsed.
Customers are being advised to contact their airline to check that their bookings were valid. The group said that in 'most' cases, flights had been paid for and tickets were still valid, but holidaymakers were likely to have to pay again for their accommodation or find alternatives.
Those who booked with a credit card and some debit cards might be able to claim compensation from their card issuers, while others might be able to make an insurance claim if their policy included supplier failure.
Go Holiday news : www.govillasandcottages.co.uk
Finbarr O'Connell, of administrator Smith Williamson, told The Times that potential claims from customers could be more than £50 million. ‘There are about 140,000 customers we believe have lost out. Sadly this means there will be very little back for any claim.’
He said compensation will be paid to claimants on a pooled basis so everyone will get back about 1% to 2%. The company, which was not ATOL-bonded, has been criticized for sending e-mails offering customers large discounts to book hours before it collapsed.
Customers are being advised to contact their airline to check that their bookings were valid. The group said that in 'most' cases, flights had been paid for and tickets were still valid, but holidaymakers were likely to have to pay again for their accommodation or find alternatives.
Those who booked with a credit card and some debit cards might be able to claim compensation from their card issuers, while others might be able to make an insurance claim if their policy included supplier failure.
Go Holiday news : www.govillasandcottages.co.uk
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