ABTA relaxes claims procedures after failures
ABTA is to relax its rules over claims procedures when a retailer fails from next month.
From July 1, the procedures will be simplified to make them less overly rigid, inflexible and frustrating.
Under the new process, ABTA principals will no longer have to provide proof of payment from their clients to the failed retailer.
At present, the documentation has to be provided in very specific forms and is often difficult to obtain from clients.
In addition principals have to provide evidence of specific written documentation showing they had chased retailers when payment was overdue.
ABTA admitted that the process involves extra work for ABTA Principals’ credit control departments and, if not provided, has led to claims not being paid.
Chief executive Mark Tanzer said: “This is a very significant change that is fairer to our members and will make their lives much easier. ABTA is committed to helping our Members build and run successful businesses. I’m sure this change will be welcomed in the current difficult economic climate.“
But it stressed that it was still essential that principals do not relax their usual credit control procedures. ABTA will still require some proof that these were in place and that debtors have been chased, but the evidence required will now more accurately follow standard modern working practices.
The new regime will apply to claims against companies that fail from July 1, not to any claims against companies that failed before that date.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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