Bed bank youtravel.com has denied allegations it made threats to a couple who had booked a holiday in Egypt through failed Scottish agency Cambuslang Travel.
David and Margaret Bulloch were on holiday at the five-star St George Three Corners resort in Sharm el-Sheikh when Cambuslang Travel collapsed and were contacted by phone in resort by a youtravel.com representative.
Allegations, made in the Scottish Sunday Mail, claim the couple were told they could go to prison if they did not pay immediately for their accommodation – money that had not been passed on from Cambuslang Travel to the bed bank.
A youtravel.com spokesman said: “At no time were any threats made to Mr and Mrs Bulloch. The staff member based in our UK office called and explained the situation to them, regarding the need to pay for the accommodation before checking out, due to Cambuslang Travel going into administration while they were away.
“Moreover, we have contacted the hotel management team and our company representative, who dealt with the party while in Sharm el-Sheikh, and they also categorically deny having issued threats.”
The couple told the newspaper they had paid in full for the two-week all-inclusive holiday, costing £1,714, in April, but had to pay a further £765 by debit card over the phone. They have lodged a claim with ABTA, who has said the couple will be reimbursed.
Youtravel.com, who said the couple’s hotel cost came to £745.86, is working with ABTA to resolve any issues caused by the failure of the agency. It advised the couple to make a claim through ABTA or their credit card company.
The issue highlights problems around bed bank liability caused by recent agency failures such as Freedom Direct.
This week ABTA has sought to clarify the situation by changing its rules to force ABTA bed banks members to pay back consumers who lose money as a result of an agency failure, even if the money has not been passed on to the bed bank.