You are here: Home - Insurance - News -

Thomas Cook customers paid over £500m for worthless holidays

Written by: Paloma Kubiak
Holidaymakers had shelled out more than a half a billion pounds when Thomas Cook went bust, latest documents reveal.

The Insolvency Service revealed that at the time of Thomas Cook Group’s failure in September, customers had shelled out £585m for package holidays, flights and other services.

Overall, the group’s total liabilities come to £9bn, including £5.7bn in debts to other companies, £1.7bn to banks and other lenders, £885m for trade creditors such as airline businesses and tour operations, and £45m to employees.

However, asset realisations are estimated at between £176m and £244m, so it is not known how much money will be paid back to creditors.

When the renowned travel business went bust in September, 150,000 holidaymakers were stranded abroad and 300,000 future holidays were cancelled.

These customers were protected by the ATOL financial scheme and to date, 250,000 claims have been settled (around 75% of all claims), with more than £200m being paid out.

Earlier this month, the Civil Aviation Authority (CAA) admitted thousands of refund claims had been delayed beyond a 60-day deadline it had set.

It said a third of the 67,000 claims submitted on 7 October – when the refund scheme opened – were still outstanding, though it had already paid out £160m.

Richard Moriarty, chief executive of the CAA, said: “We understand that those consumers that have not been paid yet have had to wait longer than we had hoped and we are doing all we can to process these claims as soon as possible. Unfortunately, our operation has had to include extra checks and processes owing to the quality of the information we received from Thomas Cook’s systems and the potential threats of scams and fraud.

“We will continue to make as many payments as possible each day and contact consumers that need to provide us with further information in order to validate their claims.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week