We want to ensure that every affected ATOL protected consumer is refunded as quickly as possible.
To do this we have asked the ATT to waive some of their usual requirements, and have come up with a streamlined claims process. This involves the CAA refunding all bookings made through travel agents without the need for agents to provide proof of their payment to the failed ATOL holder or its administrator.
The CAA can then fully reconcile funds processed by travel agents independently of consumers’ claims, avoiding any delays while this exercise is completed.
The following letters have been sent to every travel agent:
As Monarch has entered administration, all pipeline monies belong to the Air Travel Trust and you have to follow the CAA's instructions on where to pay pipeline monies. In this case we have instructed you to pay pipeline monies to Monarch's administrator, KPMG, which is collecting these monies on the Air Travel Trust's behalf.
In order to support the streamlined customer claims process for Monarch claims, the CAA is dealing with all customer claims. Travel Agents must not refund their customers directly. Claim forms have already been dispatched to allow customers to make a claim under the ATOL Scheme. Thousands of claims have already been received and are being processed and paid.
Commission was payable by the ATOL holders which has now entered administration. All pipeline monies, including the amounts you may have routinely deducted from payments to Monarch before it entered administration, are now payable to the ATT. You are no longer able to apply any deductions or set off.
The ATT is unable to pay the commission that was due to you from Monarch. You must claim this from the administrators, KPMG. If you pay across the pipeline monies as instructed, you may charge the ATT a one-off handling fee of £50 per booking included in that payment. To receive this fee you must raise an invoice to the ATT as set out in the letter sent to you by KPMG.
The impact of Monarch entering administration (set out above) applies equally to commission in respect of holidays that had been completed prior to the date of administration. As set out in our letter, you must pay to the ATT all pipeline monies you are holding and make a claim to the administrators (KPMG) for commission owed by Monarch to you.
You will need to ask your customer to resubmit their claim to Protect Claims, CAA Claims Agency, so that they reclaim the entire amount they paid for their booking under the ATOL Scheme. They need to provide evidence of their additional payment and complete Section 5 for the correct (i.e. full) amount. Please then send the new Section 5 and the additional evidence of payment to Protect Claims quoting the claim number previously allocated to the consumer's claim.
If you have any queries on the received spreadsheet of your bookings you should contact KPMG at the email address within their original email, which is Section.CreditControl@Monarch.co.uk
You were not permitted to do either of these things. On the date Monarch ceased trading and went into Administration CAA published confirmation on its website that all “pipeline monies” should be held until further instructions had been issued. A few days later the CAA e-mailed Stop Notices to all travel agents instructing them once again to hold ATT monies until further instructions were issued.
If you have utilised ATT pipeline monies for a replacement booking you must pay the amount of pipeline money you were holding on 2 October into the ATT Trust account, as instructed. You can then ask the consumer to assign their claim under the ATOL scheme to you.
If you have refunded consumers contrary to the instructions above you must urgently contact KPMG on Section.CreditControl@Monarch.co.uk.
We do not expect agents to pay the outstanding balance due from the consumer to the Monarch ATOL holders but only any monies that you are holding in respect of these bookings as at 2 October 2017 (the date of failure).
If you do not hold any monies in respect of bookings please just enter a zero in the spreadsheet.
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