Bed banks warning over your money

ABTA has warned that its proposal to force bed banks to accept responsibility for customers’ money in the event of an agency failure could be applied to non-ABTA members.

This means if you book a holiday that is a 2 part package flights and accommodation, and your agent goes bust the accommodation side of your booking means you will be entitled to a refund.

ABTA chairman John McEwan said the move was designed to stop a repeat of this summer’s problems when bed banks, including non-members, refused to refund customers after Freedom Direct’s collapse.

But ABTA chief executive Mark Tanzer insisted: “This change to the articles will only apply to ABTA members but, in so far as it follows broader consumer protection and contract law, we believe the same obligations exist for non-ABTA suppliers.

Where we see these obligations being flouted by non-ABTA suppliers, we will approach the relevant authorities charged with protecting consumer rights, so they can take action as they see fit.”

The association said it would contact the Office of Fair Trading (OFT) if non-ABTA bed banks flout the ruling, which is expected to be passed on October 2.

He said: “If ABTA is able to clarify the situation with regard to its own members, it will also look to the OFT to ensure the problems encountered this summer do not reoccur as a result of the actions of non-ABTA members.”