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Travel Agency Went Bankrupt!


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This is a new one for me! I won a bid on eBay for a cruise to Alaska in June 05. I had called the owner of the travel agency (All Of Us Travel based in Salt Lake City, Utah) and had done research prior to bidding - they had a great reputation. I won the bid and contacted the agency regarding payment - made payment and received an itinerary with confirmation of the booking with NCL as well as my travel insurance documents.

 

I then got an e-mail a week later from a fellow eBayer that the travel agency had filed bankruptcy. Sure enough - they posted a note on their website and on their voice mail and referred all questions to their lawyer.

 

I then contacted NCL and found that partial payment had been made on the cruise. Since then things have turned into a nightmare. NCL is investigating, Salt Lake City police are investigating and right now my cruise and $$$$ are in limbo as well as many other folks that also booked through them. I can't move forward with plans for the cruise or book airfare as I have no idea what is going to happen.

 

If anyone else is also embroiled in this nightmare situation, feel free to e-mail.

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Actually, your credit card (if you wisely used one for this) should have been run through NCL, not your TA, so they would have your money. If not, your CC company should go to bat for you for a credit to your account. Commissions to the TA are paid by the cruise line, not the client.

 

This is what normally happens when you use a TA for a cruise. However, I've had no experience with Ebay, hopefully they are no different from all the other TAs out there. Worst case scenario then would be your cruise may cost more than what you originally contracted for. I've seen some of the winning bids, they are usually more than a TA.

 

Good luck, I hope you get this rectified quickly and I hope you get to go on your cruise.

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Ebay's buyer protection should cover up to $200 I believe it is, if they don't deliver on the cruise. Paypal, I covers up to $1,000 as described below... I don't know that a cruise is considered "tangible" though... maybe the documents would count? If you paid directly to the cruiseline with your cc, file a claim with them now.

 

PayPal provides several protection policies to make shopping with PayPal safe for both buyers and sellers.PayPal Buyer Protection

 

icon_buyerProtection_30x30.gifIf you buy your item on eBay and your purchase meets certain criteria, PayPal will provide up to $1,000.00 USD coverage at no additional cost. PayPal Buyer Protection covers:

  1. eBay items purchased with PayPal where payment is made to the seller's email address associated with the listing (make sure to pay with the grey Pay Now button found when the listing closes on eBay)
  2. Items that are never received or are significantly different than what was described in the listing
  3. Tangible items (physical goods that are shipped to you) only. Services and intangible items are not covered.

Other Limitations:

  1. You may only file one claim per PayPal payment
  2. Claims must be filed within 45 days of the PayPal payment
  3. Buyer Protection does not cover cases where you are simply disappointed with the item you have received
  4. You are limited to three PayPal Buyer Protection refunds per calendar year
  5. You must be willing to provide information during the investigation process, if requested

 

you only have 45 days from the date of payment to file with them... so file now if you used Paypal and let them figure out if it's covered. But, before you panic, if NCL has recieved a partial payment, is the partial payment the same amount you paid the travel agent? All the investigating might just be because it was an online sale... are you certain that there's anything wrong with your standing reservation (and partial payment) to NCL? If you paid the full amount to the travel agent, and they only made a deposit to NCL, that's where the nightmare is... and I understand the panic. I should think that as they were legally supposed to pay NCL in full when You paid Them, that you could sue for fraud, but as they've filed for bankruptcy, I don't know...

 

Have you tried contacting the lawyer that they reffered you to? Perhaps they might actually have an answer?

 

I'm really sorry... that sux that you have to deal with this instead of looking forward to your cruise.:(

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I did pay with my credit card - and noted on my statement this week that $1000 went to NCL and the rest to the travel agency.

 

I called the credit card company as I think you only have 60 days to dispute charges and they were very nice but told me that I have paid for a service that is to take place June 4th. If the cruise doesn't happen because the travel agency fails to finalize the booking by sending NCL the rest of the payment, only then can I dispute the charges and I will have 60 days from that time to do so.

 

They did take note of my concern though and suggested I try to cancel the cruise and re-book through another agency. Oh how I would LOVE to be able to do that but the agency does not answer its phone - voice mail is full and the bankruptcy lawyer cannot answer travel related questions.

 

All I want is my cruise... I was SOOOOOooooo looking forward to finally getting to go to Alaska this time. And I bought it as a surprise for my hubby's birthday in May.

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A positive note on my situation...

 

There are several (probably dozens) of people in the same situation. I have confidence that NCL will not rip us off (I love Norwegian!)

 

Several of the people that purchased cruises have been in contact with the Better Business Bureau and a cyber task force based in Salt Lake City, Utah with their local police department.

 

We have high hopes that there will be some resolution before too long. I know of one person that is booked for Feb 9th who has not yet received her travel documents, but NCL assured her that all is fine with the booking. I just hope this is true. She is supposed to let me know what happens.

 

Sandy

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You can try calling NCL and removing the ebay TA as your agent on record and place yourself as the new agent. Then send a certified letter to the TA and ebay cancelling the cruise with them since you are still within your legal rights to cancel .

 

I had an agent that stole my credit card number and never made appropriate payments to the cruise line. I now book everything on my own.

 

I hope this all works out for you.

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That really is a shame. Have you contacted the consumer affairs office of the Utah Attorney General? It would seem to me that the TA was acting in a fiduciary capacity and that if they took your money and did not apply all of it, to the purchase of the cruise, then their actions could be fraudulent.

 

I, too, would also contact NCL I'm sure they would want to assist you.

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Norwegian is not honoring the bid prices for the cruise but will refund downpayments - at least that is the latest we heard last week.

 

The Utah States Attorneys office is working on the case in conjunction with the Salt Lake City PD as a case of possible cyber fraud.

 

I'll likely know by the end of March what the outcome will be for me. I hate to wait that long to re-book for a June cruise - but have few options as I don't want additional charges on my credit card until I know for sure that these are resolved.

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I'm not faulting you, but I rank the ebay auctions for cruises right up there with the faxes I receive DAILY stating I can have a cruise for only $99!! I think ebay has its stong points, but you (and everyone else) would be wise to deal with reputable, established TA's or book through the cruise line itself. Again, I'm not blaming you as you didn't know. But now that you do, you can help to educate others.

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