Agents blamed as CAA reject claims
Agents are failing to provide the right holiday documents for customers in a blunder that could put them out of business, ABTA has warned.
The association said retailers are sometimes neglecting to pass on ATOL receipts and invoices.
And the oversight can come back to haunt them if an ATOL holder goes bust, the association said.
The warning emerged as ABTA confirmed that the CAA has rejected “a number” of compensation claims because agents have failed to give customers the correct booking documentation.
It said holidaymakers have been unable to provide the CAA with proof of booking which is necessary for claims to be processed.
The blunder will result in agents having to pay back clients from their own coffers – which could force them out of business.
In a notice sent to members, Newman Street said: “It has become apparent following the CAA’s rejection of a number of claims over the summer that agents have not been passing on the correct ATOL documentation to clients.
“If a client fails to receive an ATOL receipt or confirmation invoice from their agent identifying the tour operator with whom they are in contract, prior to an ATOL holder’s failure, the client will have their claim rejected.”
It added: “The CAA is unable to authorise payment when there is no evidence of contractual documentation and this means the agent will be responsible for reimbursing the client.”
A spokeswoman said if the claims were large enough, it could send agents to the wall.
“It would not take too many claims to cause real problems,” she said. “We want to remind members of the importance of passing on ATOL documents.”
Report by Steve Jones
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