Protection under new Package Directive could be ‘a total nightmare’
Allowing tour operators to choose where they get financial protection could be ‘a total nightmare’ claims the Association of ATOL Companies.
The EU proposals under the Reform of the EU Package Directive allow tour operators to use a ‘myriad of unfamiliar schemes’.
This means UK travellers may not enjoy financial protection through the ATOL scheme in the future, claims the association.
Under the new proposals, consumers could be faced with various schemes from the 28 existing members of the EU.
In a survey of AAC members last month, 80% of members opposed the change, noting not only the likely consumer confusion that would follow but the damage that could be caused to the current ATOL system.
The UK consultation closed at the end of November with the ACC submitting their concerns to the Department of Business, Innovation and Skills.
The directive should be discussed by the European Commission in early 2014.
Lindsay Ingram, chair of the AAC said "The UK ATOL system provides protection in cases where EU law is far from clear and consumers may find themselves unprotected when buying similar products from non ATOL holding businesses, either based here or abroad."
"No other country extends protection beyond traditional package holidays as defined more than 20 years ago, "added Alan Bowen legal adviser to the AAC.
"The sheer issue of dealing with language problems if protection is based overseas may be insurmountable and cause greater stress in the event of a business failure."
Diane
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