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Thomas Cook: Your questions answered Thomas Cook collapse: What are your rights?
(3 days later)
Hundreds of thousands of Thomas Cook customers are worried about their holidays amid the travel company's current turmoil. Thomas Cook has collapsed, triggering the biggest ever peacetime repatriation aimed at bringing more than 150,000 British holidaymakers home.
The business could fall into administration this weekend unless it finds £200m in extra funds needed to secure its future. The company, its customers and staff had hoped for a rescue deal, but now that last hope has gone, they will be looking at the practicalities for the near future.
It is doing its best to reassure customers, but any collapse could leave thousands of people out of a job and throw the holiday plans of many more in the air. About 800,000 British people had future bookings and the company had 9,000 employees in the UK.
Is the company going under? Will I lose my holiday booking?
It is in a race against time to find extra money to survive, but sources insist there are still "reasonable prospects" of a deal. Anyone who has bought a package holiday will be covered by the Air Travel Organiser's Licence scheme (Atol). You would have received an Atol certificate when you booked.
Thomas Cook hoped to seal a rescue led by China's Fosun this week, but the creditor banks issued a demand that the travel company find an extra £200m.
There are plenty of examples of companies securing a seemingly last-minute deal to continue, and Thomas Cook is stressing that it is still operating, with flights and bookings continuing as usual.
Will I lose my holiday booking if Thomas Cook collapses?
Anyone who has bought a package holiday will be covered by the Air Travel Organiser's Licence scheme (ATOL).
This means you will not be going away, but the cost of the holiday will be refunded.This means you will not be going away, but the cost of the holiday will be refunded.
The majority of of Thomas Cook holidays are packages. The Civil Aviation Authority (CAA) will be launching a service to manage all refunds on Monday, 30 September, with details published in the coming days. It has asked people not to submit anything to the CAA before then.
The CAA said all refunds should be processed within two months of a claim form being submitted properly.
The majority of Thomas Cook holidays are packages.
Does the refund cover everything?Does the refund cover everything?
Stating the obvious, everything that was paid for as part of the package - such as flights, accommodation, and excursions - will be refunded.Stating the obvious, everything that was paid for as part of the package - such as flights, accommodation, and excursions - will be refunded.
Some holidaymakers might have paid separately for airport parking, or car hire while away. In this situation, they would need to make a claim from their travel insurer for the cost. Some holidaymakers might have paid separately for airport parking or car hire while away. In this situation, they would need to make a claim from their travel insurer for the cost.
In more extreme cases, such a wedding, there may be a host of other things that could be affected. Specialist cover, such as wedding insurance, may be the only route for those left out of pocket.In more extreme cases, such a wedding, there may be a host of other things that could be affected. Specialist cover, such as wedding insurance, may be the only route for those left out of pocket.
Could I switch to another holiday?Could I switch to another holiday?
Probably not. Thomas Cook customers must carry on as normal at the moment. Cancelling might carry a heavy financial penalty. Were the company to collapse, they would only get a refund, as that is what the ATOL protection states. No. Holidaymakers with package deals get a refund, as that is what the Atol protection states. Booking a new holiday in the very near future might have got more expensive.
Some other operators which use Thomas Cook flights will try to switch their customers to an alternative at no extra cost. Only part of my holiday is with Thomas Cook, what do I do?
I have only booked a flight with Thomas Cook, what are my rights? Some other operators which used Thomas Cook flights will try to switch their customers to an alternative at no extra cost.
The ATOL protection covers packages, not flight-only deals. So that means that if the company collapsed, you would not get an automatic refund. Others may be on cruises organised and paid through Thomas Cook. It is best to contact those operators directly as they will be prepared to explain the status of the holiday.
Instead, you would need to make a claim on travel insurance. That is why it is always advised to buy travel insurance at the same time as booking a holiday. Some policies have an exclusion for the collapse of an airline, so not everyone will be covered. I have only booked a flight with Thomas Cook. What are my rights?
A spokesman for the Association of British Insurers says: "As a last resort, travel insurance with scheduled airline failure cover can cover the cost of a flight when the airline has gone into administration. A travel insurance policy with travel disruption cover will cover the cost of new travel arrangements. The Atol protection covers packages, not flight-only deals. So that means you would not get an automatic refund.
"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." The main alternative is claiming a refund from the provider of the credit or debit card you used, so-called section 75 rules.
The other alternative is claiming a refund from the provider of the credit or debit card you used, so-called section 75 rules. Otherwise you may need to make a claim on travel insurance. That is why it is always advised to buy travel insurance at the same time as booking a holiday. Analysis by data company Defaqto shows that 45% of travel insurance policies do not cover the collapse of an airline, so not everyone will be covered.
There may be a little more protection if the hotel you booked was linked to the flight, such as a click-through when booking the flight. A spokesman for the Association of British Insurers says: "As a last resort, travel insurance with scheduled airline failure cover can cover the cost of a flight when the airline has gone into administration. A travel insurance policy with travel disruption cover will cover the cost of new travel arrangements."
There may be a little more protection if the hotel you booked was linked to the flight, such as a click-through when booking the flight. That could be covered by the Atol scheme.
Anyone who bought a Thomas Cook package that did not include a flight may be covered under the separate Abta scheme.
I'm on holiday now, what do I do?I'm on holiday now, what do I do?
At the moment, enjoy your break - it is supposed to be relaxing! At the moment, enjoy your break as much as you can - do not cut it short. That said, the repatriation operation will only run up to and including Sunday 6 October. After that, travellers would have to make their own plans, although those covered by Atol will be refunded.
If Thomas Cook were to collapse, then the ATOL scheme ensures that anyone on a package holiday will be able to complete their break as planned and be flown home at the end of it, at no extra cost. There is a possibility you may be asked to change hotels. Hoteliers will be paid via the Atol scheme, so they should not ask for any extra payment from holidaymakers.
Thomas Cook has 600,000 customers on holiday from around the world, including up to 160,000 from the UK, so it will be a huge logistical challenge. UK package holiday customers will be brought home "as close as possible" to their booked return date, the Department for Transport (DfT) has said. They must take their original ticket information with them and will be issued with a fresh boarding card for their flight.
Customers will be on special free flights or booked on to another scheduled airline at no extra cost, with details of each flight to be posted on a dedicated CAA website as soon as they are available, up to 72 hours before its scheduled departure.
The CAA said some people might be flown to different UK airports from the ones originally scheduled, but free transfers would be provided.
The DfT added that a "small number" of passengers might need to book their own flight home and reclaim the costs.
Thomas Cook had 600,000 customers on holiday from around the world, including more than 150,000 from the UK, so it will be a huge logistical challenge.
When the Monarch airline collapsed, there were arguments for a better repatriation system, but nothing has been implemented as yet.When the Monarch airline collapsed, there were arguments for a better repatriation system, but nothing has been implemented as yet.
Those on flight-only deals were also repatriated following the Monarch collapse, by order of the government. That precedent suggests that could happen if required this time, but cannot be guaranteed. I'm paying for next year's holiday via direct debit. Should I continue?
It looks like any direct debit to Thomas Cook is pointless, but most people will not need to cancel it.
If a direct debit is due to be taken on Tuesday, then you should cancel it straight away with your bank, according to banking trade body UK Finance. Any payments from other customers at a later date will not be processed owing to the insolvency.
Any money that has been paid towards a package holiday already should be refunded via the Atol scheme, so you will need to make a claim for it in due course. The same is true of a deposit.
I've been given a Thomas Cook gift card. Will it be of use?I've been given a Thomas Cook gift card. Will it be of use?
At the moment, yes, as the company continues to operate as normal. Nothing is clear on that yet. It is highly likely that gift cards or vouchers will be worthless, consumer experts say.
If the company goes bust, then it is highly likely that gift cards or vouchers will be worthless, consumer experts say. It will depend on what happens to the company - whether it is rekindled and whether any vouchers would then be honoured. If they are useless, then the person who bought it might be able to make a claim to their credit card provider if it was a generous gift of more than £100, or their debit card provider for less.
It will depend on what happens to the company, whether it is rekindled, and whether any vouchers would then be honoured. If they are useless, then the person who bought it might be able to make a claim to their credit card provider if it was a generous gift of more than £100, or their debit card provider for less. There is better news for those with a pre-paid Thomas Cook currency card, as any funds held on that are protected separately from the company, so will not be lost.
What about other services, such as sport packages?What about other services, such as sport packages?
Thomas Cook does run domestic ticket and hotel packages for sporting events. Thomas Cook ran domestic ticket and hotel packages for sporting events.
It is unclear what would happen to those bookings if it collapsed, but as most people would not have any insurance cover for such a trip, a refund claim would probably have to be made to the provider of the credit or debit card used to pay. As the business has ceased trading, they would no longer be valid, although anyone with trips planned could try contacting the destination direct.
For example, Thomas Cook would have sold 360 hospitality packages for home matches at Liverpool football club's Anfield ground.
"We are currently assessing the impact of Thomas Cook ceasing trading and the impact for those supporters who have purchased packages from Thomas Cook. Once we have those details from Thomas Cook, we will update supporters," the football club said.
Some people had booked travel and tickets for the forthcoming American football games in London through Thomas Cook. The NFL said it was investigating and would give further information soon.
As most people would not have any insurance cover for such a trip, a refund claim would probably have to be made to the provider of the credit or debit card used to pay.
What should I do if I work for Thomas Cook?
While customers will be worried about their holidays, staff will be heartbroken about their livelihoods.
Staff are being informed about what has happened to their jobs, with written confirmation to follow.
A group of special managers, from accountancy firm KPMG, have been appointed and will contact staff with a case reference number which will allow them to make a claim for redundancy payments.
The Pension Protection Fund (PPF) should step in to protect the more than 13,000 members of Thomas Cook's four pension schemes.
Workers who are over the age of their normal retirement will get full benefits, while those who have not yet reached normal retirement age will be paid 90% of their promised pension, up to a cap of £40,000. Members with bigger pensions will get at least 50% of their old age pensions, under PPF rules.
Meanwhile, the 3,000 or so retired members of Thomas Cook's pension schemes will continue to have their pensions paid in full by the trustees.
Are you a Thomas Cook customer or member of staff? If you've been affected by the company's collapse, please get in touch by emailing haveyoursay@bbc.co.uk.
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