Insolvency, Insolvency Practitioner|

NOTICE FOR CONSUMERS

Re: THE FAILURE OF CHEAP COST HOLIDAYS LTD – ATOL 10947

Company Name: Cheap Cost Holidays Limited (In Liquidation) (“the Company”)
   
Trading Name(s): Cheap Cost Business Class; and Cheap Cost Flights; and Cheap Cost Holidays; and Cheap Cost Hotels; and Cheap Cost Travel; and Cheap Traveler; and Dial 4 Holidays; and Holiday Formula; and Holiday Shoppy; and Refresh Holidays; and Top City Breaks

Cheap Cost Holidays Limited has ceased operating. It was licensed under the Air Travel Organisers’ Licensing (ATOL) scheme managed by the Civil Aviation Authority (CAA).

Laura Anne Walshe of Keystone Recovery Ltd, Gill House, 140 Holyhead Road, Birmingham, West Midlands, B21 0AF was appointed as Liquidator of the Company on 29 October 2021.  The purpose of this notice is to provide information on your rights as a consumer in relation to this matter.

What is ATOL protection?

All travel companies that sell package holidays with flights to UK customers are legally required to hold an ATOL certificate.  The scheme protects customers who booked these holidays, making sure they don’t get stranded abroad or lose their money.

How ATOL protects you?

ATOL protects your money where a company involved in your holiday becomes insolvent before you depart and guarantees that you will be brought home if the company collapses while you are abroad.  All travel firms based in the UK that sell air holidays hold an ATOL, which is only issued after the firm has met the CAA’s (Civil Aviation Authority) criteria. 

The ATOL scheme applies if you book a flight or a package holiday under the Package Travel and Linked Travel Arrangements 2018.  A package holiday is when you book more than one part of your holiday through the same travel agent or website.  ATOL protection applies to most air trips abroad that are booked with UK travel companies.  If you are covered by ATOL, the travel company should have given you an ATOL certificate when you booked.

ATOL Protection Exceptions

This protection does not apply if you purchase your flights directly from your airline.  Flight-only arrangements bought through a travel agent are not always protected under the ATOL scheme.

Linked Travel Arrangements are not included in the ATOL scheme but have other protections.  Gift cards issued by a travel company are not usually covered by ATOL protection. But if your holiday was cancelled due to the COVID-19 outbreak, and you were refunded with travel credits, these credits will be covered by the ATOL scheme if your holiday company becomes insolvent.

For more information on the exceptions, visit the ATOL website.

The following information is for ATOL protected bookings. ATOL protected consumers are those that booked:

An ATOL protected flight inclusive package protected by Cheap Cost Holidays Ltd

Your ATOL Certificate will say either ‘Package Single Contract’ or ‘Package Multi-Contract’ in the bottom right-hand corner.  The company’s ATOL number 10947 will also be shown in the box to the left of this.   

CONSUMERS DUE TO TRAVEL

Package bookings

If you have flight tickets the flight may be valid, passengers are advised to check with the airline, if the airline confirms you have a valid ticket for travel, you have two options:

Option 1

If you do not wish to use your flight you can make a claim for a refund for the amount you paid to Cheap Cost Holidays Ltd for your ATOL Protected package (depending upon your original method of payment).  Also applicable for passengers with non-valid flights.

Option 2

You can use your flight and if you are asked to pay again for the other elements included in your original package, claim for the cost of replacing these (subject to how you originally paid).

The other services may not have been paid to the local suppliers and you may be required to re-arrange and pay for these services again.  To avoid any issues in resort, you should confirm the cost of all the elements in advance of travel. 

However, there is a limit to the amount you can claim. For details of your claim entitlements please view the ATT Payment Policy.

Consumers who choose Option 2 and decide to travel, if you originally paid Cheap Cost Holidays Ltd by credit card, then your claim for the replacement elements will be from your credit card company.  The amount you can claim from your credit card company will be capped at the value of your original credit card transaction.  So, if your replacement element claim exceeds this sum, you may claim the remainder from ATOL.  The replacement items must either match the original booking or be of the same standard, board basis, room type, tour etc, as the original.  Please check the ATT Payment Policy for your claim entitlement. 

Please note claims cannot exceed the total cost of the original booking made with Cheap Cost Holidays Ltd. 

Think carefully before you choose option 2 and check the cancellation terms with the suppliers particularly considering the prevailing short notice travel restrictions and/or quarantine measures. 

Please note that if you choose to travel and use your valid flight, you are not protected under The Package Travel and Linked Travel Arrangements Regulations 2018 as your package travel provider has ceased to trade.  You will therefore be responsible for any risks arising from each individual element of your trip which would have previously been protected.

ATOL protected bookings that were cancelled, and refund credit notes issued

If your ATOL booking was cancelled on or after 10 March 2020 due to Covid-19 and Cheap Cost Holidays Ltd issued to you an ATOL Covid-19 Voucher – they may have called it a ‘Refund Credit Note’ or provided written confirmation that you are owed a refund, you may make a claim (subject to how you originally paid).

Please note that we can only accept claims for cancelled ATOL bookings. 

Package bookings made directly with Cheap Cost Holidays Ltd – Who to claim from, depending on how you originally paid

If you paid for your original trip by credit card to Cheap Cost Holidays Ltd, your claim will be with the credit card provider.  If you are choosing to travel, you should check with your credit card provider prior to travelling to establish what your claim entitlement amount is. You will only be entitled to claim for any replacement costs from ATOL up to the cost of your original trip less the amount originally paid by credit card.

If you paid for your original trip by credit card and other methods to Cheap Cost Holidays Ltd, your claim will be with the credit card provider for the portion you paid by credit card, and the CAA for payments by other methods.  If you are choosing to travel, you should check with your credit card provider prior to travelling to establish what your claim entitlement amount is. You will only be entitled to claim for any replacement costs from ATOL up to the cost of your original trip less the amount originally paid by credit card. If you do not travel you will be entitled to claim for the payments by credit card from your credit card provider and the other methods of payment from ATOL

If you paid for your original trip by any method other than credit card to Cheap Cost Holidays Ltd, your claim will be with ATOL. If you choose to travel and are requested to pay again to replace elements of your original booking, you will be entitled to claim for any replacement costs from ATOL.

For further information and claim documents please visit:

https://www.caa.co.uk/ATOL-Failures/Cheap-Cost-Holidays-Ltd/

IMPORTANT NOTE: The time limit for making a claim to ATOL is by no later than 25 October 2022.

The UK CAA has the power to prosecute offences related to its statutory functions. Person(s) who make fraudulent ATOL claims, following the failure of an ATOL holder, may be prosecuted by the UK CAA for offences under section 1 of the Fraud Act 2006. The maximum sentence for this offence is 10 years’ imprisonment.

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