Teething problems as the ATOL reforms bed in
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Under the transition provisions, during May the Air Travel Trust has agreed to honour claims if the business selling the "flight-plus" holiday goes bust provided it was making substantial progress towards obtaining the ATOL.
This has the potential to put significant pressure on the pot of money set aside to secure refunds for consumers under the ATOL scheme. Traditionally, holiday companies tend to go bust towards the end of the peak holiday season but this has not been the case in recent years where cash flow has caused travel companies to default much earlier in the year.
Let's hope that reforms introduced to increase consumer protection have the desired effect and are not thwarted by attempts to introduce change too quickly.
Read more here.
Solicitor - Claims Abroad team
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