20/09/2019
HERE'S SOME INFO THAT MAYBE USEFUL IF YOU HAVE A FUTURE BOOKING WITH THOMAS COOK✈️✈️✈️
If you have a booking for a future trip, again, don't panic, as for now nothing has changed. But if the worst were to happen and Thomas Cook were to collapse, here are the key need-to-knows:
ATOL protected
Package hols which include a flight are ATOL-protected
Package holidays that include a flight are covered by the Air Travel Organiser's Licence (ATOL) scheme. This is the case whether you booked direct with Thomas Cook or via an agent. Look for the ATOL protection sticker.You should have received an ATOL certificate when booking (Thomas Cook says if you booked direct with it, it will be on the final page of your booking documents):
ATOL protection means that if Thomas Cook were to stop trading:
If you hadn't started your trip when it stopped trading, you'd get a full refund (or in some cases a replacement holiday instead).
If you were already on holiday when it stopped trading, you'd be able to finish your trip and return home.
It's worth noting that if you booked with a gift card and your holiday is ATOL-protected so you're due a refund, it would be paid in cash.
Booked a package hol with no flight? You have ABTA protection instead
For package holidays without a flight, you'll still be protected, but this time it'll be under the ABTA scheme. This means you'd be able to get a refund (or get home if already abroad and your package included return transport) if Thomas Cook were to collapse.
If you bought a DIY package, you MAY also be protected
If you booked the different elements of a holiday (eg, flight, hotel, car hire) separately, as a DIY package, and one element of that was with Thomas Cook, you MAY also be protected – but it depends on exactly how you booked (and here it gets a bit complicated):
If you bought the different elements separately via the same website, shop or call centre in the same transaction, you get the same protection as with a traditional package holiday. If your holiday includes a flight, you'll have ATOL protection – if not, it'll be covered under another scheme such as ABTA.
If you bought different elements of a holiday separately in multiple transactions, but in the same visit to a website or shop or the same telephone call, you also get some protection. However this only covers you if the company that sold you the holiday goes bust while it has your money, which wouldn't help if Thomas Cook were to be providing one of the elements of your holiday and collapse. The official jargon is 'linked travel arrangement', and you should have been told you have this when booking.
With most other DIY bookings, you're not covered. If you booked everything independently, you're unlikely to have any kind of package or linked travel arrangement protection.
The rules defining exactly what kind of holiday you have for protection purposes are complicated and there are exceptions to the rules above, so unless you're 100% clear where you stand, ask. It's also worth noting that the protection outlined above applies to holidays booked from 1 July 2018. Before then, the rules were slightly different.
Many flight-only bookings won't be ATOL-protected
If you booked a flight direct with Thomas Cook Airlines you won't be protected by ATOL. However some flight-only bookings with Thomas Cook may have ATOL protection - Thomas Cook says you'll have it if you booked via Thomas Cook Tour Operations, and you may also have protection if you booked a Thomas Cook Airlines flight as part of a DIY package, as outlined above.
If you're unsure, the best way to check is to look for an ATOL certificate, which you should have received at the time of booking.
Check how you paid - you may be protected by your card provider
In the event that Thomas Cook were to go bust, even if your trip isn't covered by ATOL or ABTA, you could still have some protection if you paid for your booking using a debit or credit card:
If you paid by credit card for a holiday or a flight costing £100+, you may be protected under Section 75 of the Consumer Credit Act, meaning the card company's equally liable, and you may be able to claim your money back from it if Thomas Cook were to stop trading.
However if you booked via a travel agent, it's more complicated. Technically for Section 75 to work, there must be a direct link between the debtor (that's you, the customer), the creditor (the credit card company) and the supplier (in this case, Thomas Cook). If you booked via a travel agent, it's likely that relationship could be deemed to be broken which would mean you wouldn't be able to claim, though the Financial Ombudsman Service told us it would come down to the exact nature of your contract with the travel agent.
For a flight or booking costing less than £100, or if you paid by debit card, if the worst were to happen you might be able to claim money back from your card provider through the chargeback scheme instead.
The chargeback scheme isn't a legal requirement, it's just a customer service promise. But we've seen successful claims from people using it when firms have collapsed in the past, and crucially there doesn't need to be the direct link between the product paid for and the debt as with Section 75.
Most travel insurance won't protect you here, unless you've specific failure cover
In the event a travel firm goes bust, your travel insurance is only likely to cover you if it includes specific failure cover – and even then, this will only come into play if you're not covered by ATOL, ABTA or similar. Specific failure cover isn't common, but is a feature of some premium policies, for example LV's Premier Policy.
Given the uncertainty over Thomas Cook's position is now well-known, it's possible that if you were to take out a new policy now it might not cover you if Thomas Cook were to collapse, even if it includes specific failure cover. The Association of British Insurers told us: “Any customers buying travel insurance now with the current speculation over Thomas Cook should confirm with the insurer what the policy will cover as an insurance policy bought after an event is known or has occurred may not be valid.”
What about separate hotels, car hire etc - are they protected?
If the worst were to happen and you were unable to travel, it's possible you could lose out if you'd separately booked extra accommodation or activities that you found you were unable to use.
If this were to happen, your first step would be to get in touch with the supplier of the service and see if you could change your booking or get a refund – even if it's officially not allowed, it would be worth explaining the situation and seeing if the firm might make an exception. You could also check if your travel insurance would cover you, as some more comprehensive policies may give you 'abandonment protection' for consequential losses.
Occasionally, we've heard of people trying Section 75 to claim for consequential losses, so there's a chance you could try this too - but success would be far from guaranteed.
If you use gift cards to book a holiday that is covered by ATOL, the Civil Aviation Authority says that if Thomas Cook were to collapse and you were unable to go on your holiday you would get a cash refund.
