TA offering early payment discount - should I take it?

[snh01]

My UK based cruise TA has offered a discount on my already booked cruise if I pay in full this week - 6 months ahead of final payment due date.   The discount is significantly more that I can earn in interest in that period.

They advise that the amount is still covered by their ABTA/ATOL cover - the TA will be holding it and not passing to the cruise line until the payment date. Of course, it paid by credit card then there is also S75 cover also.

 

I wondered if any others have recently been offered and accepted/declined such an offer and and pros/cons, thoughts or concerns I should have or consider.

[Harry Peterson]

I've not seen an offer like this, but my first thought would be to question whether the TA is in financial difficulties and looking for finance to prop it up.

 

That said, if all the following conditions are met, it might be worth considering:

 

1 Payment or part-payment of more than £100 by credit card for the S75 protection.

 

2 That payment directly from the card to the TA, and not through a third party intermediary which might invalidate the S75 protection.

 

3 You're happy to lose the use of the money for an indefinite period of time if problems do arise and the TA does what so many have done - just delay indefinitely.  S75 is useful of course, but that too can take quite some time.

Edited October 4, 2021 by Harry Peterson
Added 'use of the'

[Reina del Mar]

Have never made a S75 claim but sure I have read somewhere on these boards that claim must be made within a certain time frame !

 

I would think TA is struggling and needs support after such a difficult 18 months.

 

Obviously your decision, but personally, I would wait till final payment.

[Billish]

Seems highly suspect to me. I wouldn't pay it.

[dog]

2 hours ago, Billish said:

Seems highly suspect to me. I wouldn't pay it.

Same 

[Bloodgem]

I have to agree with @Reina del Mar, @Billish and @dog. I would not feel comfortable with the TA having my money for that long. 

[snh01]

Thanks all.    
Several comments echo my thoughts but I was wondering whether this was becoming a more common practice (I have seen it on a couple of different company’s adverts recently).

The offer is from a large well known cruise TA so I hope all is well but probably makes sense to be (over)cautious.

[flossie009]

On 10/4/2021 at 7:26 PM, Harry Peterson said:

2 That payment directly from the card to the TA, and not through a third party intermediary which might invalidate the S75 protection.

Since the ultimate vendor is the cruise company, could the credit card company argue that the TA is a "third party intermediary"?

Need to check with whom you are contracting; the TA or the cruise company?

 

Personally I worry about TAs who hold onto money before passing it on to the cruise line.

In the past two years some of them have been very very slow in returning money to their clients even though the TA has been refunded by the cruise line following cancellations.

[Harry Peterson]

33 minutes ago, flossie009 said:

Since the ultimate vendor is the cruise company, could the credit card company argue that the TA is a "third party intermediary"?

Need to check with whom you are contracting; the TA or the cruise company?

 

Personally I worry about TAs who hold onto money before passing it on to the cruise line.

In the past two years some of them have been very very slow in returning money to their clients even though the TA has been refunded by the cruise line following cancellations.

You may well be right about the agency point:

 

https://www.which.co.uk/consumer-rights/regulation/section-75-of-the-consumer-credit-act-aZCUb9i8Kwfa#payments-through-an-agent-or-third-party

[MBP&O2/O]

“Since the ultimate vendor is the cruise company, could the credit card company argue that the TA is a "third party intermediary"?

Need to check with whom you are contracting; the TA or the cruise company?”

 

Under UK law, the TA is the vendor. I had a run in with a TA when claiming a refund. The TA claimed otherwise so I sent a polite email and asked for the company secretary's name so I could serve a small claims on them. The refund arrived within five days.

 

Good job really as the S75 only covers six months. 

[Kristal Blade]

We have had this offer from a non high street cruise agency and we did it! 
We had a cruise booked with this company which was cancelled due to Covid. They fully refunded the money we had spent so we felt confident in letting them hang onto our money.

 

As snh01 said there is no way we could make up that money in interest in our bank. 
 

We are looking forward to getting on our future cruise, knowing we have nothing left to pay. But each to their own.

[babs135]

Obviously you can't name the company but I would suggest that you check out their name on the other major social media website.  Several groups there have set up forums advising people how to get their money back.  There are 2 travel agencies in particular that are giving their customers a great deal of grief.

 

[Kristal Blade]

With a bit of Imagination you might be able to workout who we booked with.

As I said, we previously had a 100% refund from them last year so confident that our money is safe.

[babs135]

On 10/21/2021 at 4:49 PM, Kristal Blade said:

With a bit of Imagination you might be able to workout who we booked with.

As I said, we previously had a 100% refund from them last year so confident that our money is safe.

You were lucky. If I've worked it out correctly they were busy 'bumping' people off a cruise currently at sea. 

[2BACRUISER]

35 minutes ago, babs135 said:

You were lucky. If I've worked it out correctly they were busy 'bumping' people off a cruise currently at sea. 

I saw that too but I wouldn't worry about them going pop had a delve into their background and they're Arab funded so with oil at $85 a barrel at mo kerching  they also own arsenal stadium lol. 

[Kristal Blade]

Yes, Arab funded is right. My money is safe and my trip has various elements as well as a cruise. It’s not one of the cruise only trips they offer.

Happy holidays!

[bbtablet]

On 10/22/2021 at 8:57 PM, 2BACRUISER said:

I saw that too but I wouldn't worry about them going pop had a delve into their background and they're Arab funded so with oil at $85 a barrel at mo kerching  they also own arsenal stadium lol. 

Yes, the Stadium alone is worth multi millions - add on the value of the team and you get a whole load of trouble - some won't even take a jab!