Thousands of customers of lowcostholidays.com who lost money when the online travel firm ‘Low Cost Travel Group’ collapsed are due to receive compensation of around 2 pence for every pound they have spent.
An estimated 77,000 Britons have been affected of a total 140,000 customers worldwide.
Smith & Williamson, the liquidator, confirmed that compensation would be ‘negligible’ as there is a total of €1.3 million available for claims in excess of €50 million.
The €500 million a year Lowcostholidays business moved to Spain in 2013 and did not have an Air Traffic Organiser’s License (ATOL) as the move meant that the company came under the totally inadequate local regulation of the Balearic Islands.
Those who paid for their holidays by credit card can make a ‘section 75’ claim with their provider and those that booked flight and hotel can try their luck with the local Spanish regulator..
Most of the flights booked by lowcostholidays were paid for and remain valid but many hotel and car-hire bookings will not be honoured.
The travel business was founded by Paul Evans in 2004. Evans began his career as a Club 18/30 rep, keeps a €2 million house in Fulham and moved to Spain in 2013 when the business relocated.
See original news item:
http://www.algarvedailynews.com/news/9380-holiday-misery-as-lowcostholidays-com-goes-bust
