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UK Competition and Markets Authority rulling on T&Cs

Posted: Wed Apr 17, 2019 11:15 am
by CSE
Unfair clauses, even if written are no legal.
https://www.bbc.com/news/business-47949915

Posted: Wed Apr 17, 2019 1:14 pm
by jafa
But the reasons they give for cancelling are the classic events that would be covered by having travel insurance. Why should the owners take the brunt. I could understand if they can rebook, then yes they get their money back. But can you imaging owners being happy if they have a cancellation, and they cant refill . Complete nonsense.

Posted: Wed Apr 17, 2019 2:05 pm
by newtimber
jafa wrote:But the reasons they give for cancelling are the classic events that would be covered by having travel insurance. Why should the owners take the brunt. I could understand if they can rebook, then yes they get their money back. But can you imaging owners being happy if they have a cancellation, and they cant refill . Complete nonsense.
The article actually says:-
If the travel company has plenty of time to re-sell the room or holiday, or if it becomes available at a peak time, then the company should refund the payment or a hefty deposit.
Any amount it charges should reflect its costs.
I don't think that is unreasonable. If it's a late cancellation and so you cannot re-book, then you don't have to refund.

Posted: Wed Apr 17, 2019 4:35 pm
by CSE
Complete nonsense.
Yes, Milord he did say that. :)

Posted: Thu Apr 18, 2019 9:27 am
by greenbarn
There’s nothing new in the article, that’s the way unfair contract terms have been for a long time.

It’s also nothing new that many FHL owners and others don’t make the effort to familiarise themselves with the the legalities of doing business, and swan on with the false notion that they can put anything in their T&Cs that removes a consumer's legal rights, and if the guest signs or agrees the guest is bound by them.

It might be useful if the article went on to explain in more detail the situation if a property isn’t re-let despite reasonable endeavours, but that’s not really the purpose of click-bait.

Posted: Thu Apr 18, 2019 8:34 pm
by Martha
Lousy reporting with no onward links for more detail. Anyway I had a look around and found them.

Here's the basics on gov.uk
https://www.gov.uk/government/news/cma- ... arer-ts-cs

And here's the main campaign site
https://fairterms.campaign.gov.uk

I'll go through this carefully. But actually, I have thought for a while that it would be a good idea to explain why my terms are two months in advance. Only one person has ever questioned it, but with the rise of 'free cancellation' policies on the booking sites, I think it is likely to need to be explained to people that no, I can't re-let a place that sleeps ten at short notice. I think explainers like this can be very helpful and I'll add them to various parts of the T & Cs.

Food for thought! Thanks :)

Posted: Fri Apr 19, 2019 11:09 am
by zebedee
Thank you Martha, I found the links very helpful.

I really thought I had everything stated fairly on my terms and conditions, but just looking through line by line what I currently state has raised a query.

If someone pays a deposit, but the balance payment does not arrive, I will email and possibly even ring to chase it up. When this does happen(not often) it is usually an oversight. However, if someone does not respond, then the clock is ticking with regards to whether or not you would get another booking (my TCs say balance due 8 weeks before arrival, but allowing for polite periods of time for responses, one or two weeks can easily be eaten into).

At what point do you draw the line and say their failure to pay the balance constitutes a cancellation of the holiday AND is it then ok to say they have forfeited their deposit???

I do refund any money that I get if a holiday is cancelled, and have never charged an “admin fee” even though I could. My worry in today’s climate is that with so many competititors now, I would not get another booking to fill a cancelled spot, so am I then supposed to return a balance when the “guest” gets round to asking for it back, perhaps quoting the legislation or guidance in the links???

Posted: Fri Apr 19, 2019 11:54 am
by CSE
this is a UK law and those who are based outside then need to comply with what ever law the country you are based in applies.

Posted: Fri Apr 19, 2019 2:34 pm
by zebedee
Yes, I do get that.

I would like to hear views on my specific queries though, please.
Many thanks.

Posted: Fri Apr 19, 2019 3:16 pm
by Martha
It's a UK law but I don't actually find it unreasonable, I think it's still a good idea whichever country you're in.

Zebedee that's a good point and I will add it to my explainer in the T&Cs.
For what it's worth, I've been very severely burned twice on this one by people stalling, once with a three week peak time booking, so more fool me for letting it happen again! Now I'm very careful.

My standard email now says the balance is due by two months before at the latest. (I switched to two calendar months after a suggestion on here, it saves all that tedious counting back on weeks)

I send a pleasant email about two weeks before the balance is due, with some details, sometimes a recent picture, and a reminder that the balance is due by such and such a date at the latest, please do remember that international transfers can take up to five working days. Once the balance is received we will send you our welcome pack with directions, local recommendations etc etc looking forward to seeing you etc.

A lot of the time I get it a few days after this email. If I still don't have it five days before, I send another email along the lines of "Your welcome pack is prepared and ready, can you let me know when the transfer is done - if I know when to expect it, I can send all the info as soon as possible, I am sure you'll find it very useful for planning :) "

It hasn't happened since I started doing this.

However, what has often happened is that someone is on holiday or busy or away, whatever ....and the extra notice gives them time to sort it out. There's regularly a week or so delay, as there has always been, but you've started the 'notice period' much sooner, so you still get the balance on time.

If there were to be a flake-out on the part of the guests and still no balance on the due date, you can reasonably say they have five days (or whatever you would want to do) before the dates are re-opened for booking. At that point hey lose their deposit unless you can re-book. Because they've actually had three weeks to sort it out. So that seems 'reasonable' to me, but I also think it's good that people are aware of it.

If I can rebook I would refund the original deposit minus a small admin charge for time and also minus any reduction I would give as needed to book.

I think this is fair, but I also think it should be explained in my T& Cs. So thanks :)

Don't forget also to say what happens if they want someone else to take the booking. For me, the new person would have to send their money, and agree to the T&Cs, and after than, I would refund the original booker. IE whether it's a friend of the original booker or not, the process is unchanged.

You may remember my nightmare here with the guests who raffled it, a cautionary tale though honestly I think this specific set of circumstances is thankfully rare:
viewtopic.php?t=17749

Posted: Sat Apr 20, 2019 3:14 pm
by zebedee
Thanks Martha. A lot of food for thought.

I remember reading the story in your link as well, a very lucky escape!