ao link

 

Abta: 'Scams have cost industry millions'

Abta: 'Scams have cost industry millions'

Until now, legal costs associated with overseas package travel sickness claims have not been controlled, with many operators opting to settle out of court rather than challenge them.

 

The MoJ said this had not only forced tour operators to retreat, it had emboldened claims management companies to target tourists and urge them to pursue claims.

 

Last year, it asked the Civil Procedure Rule Committee, the body responsible for setting rules on legal costs, to bring package holiday claims within a fixed costs regime.

 

This, in effect, would mean tour operators pay prescribed costs based on the value of the claim and the length of the proceedings, making defence costs more predictable and putting power back in the hands of tour operators to challenge claims. The committee has agreed changes with the rules to be updated on Monday (April 16) before being enforced shortly after.

 

Abta has welcomed the announcement after launching its own Stop Sickness Scams campaign last year.

 

Mark Tanzer, Abta chief executive, said: “False sickness scams have been costing the travel industry tens of millions of pounds and damaging British tourists’ reputation abroad.

 

“Since 2013, legal fees for personal injury claims which occurred in the UK have been capped, which is why in partnership with claims management companies, firms of solicitors have been targeting customers who have taken an overseas all-inclusive package holiday.

 

“This has contributed to a 500% increase in sickness claims at a time when actual incidents reported by customers in resort have either remained stable or declined.

 

“We are pleased the Ministry of Justice has responded to the concerns and evidence raised by Abta and our members by taking firm action on this issue. Closing the legal loophole before the summer should lead to a reduction in the number of false claims.

 

“We encourage the government to keep this matter under review and continue to pursue a ban on cold calling by claims management companies in relation to sickness claims.”

 

Steve Heapy, chief executive of Jet2holidays and Jet2.com - which have also campaigned on the issue - added: "In some quarters Britain has been referred to as the ‘fake sick man of Europe’, and a cure for this sickness has now been found.

"We urge the government to follow up this welcome news by banning the practice of cold calling in relation to sickness claims, as we know that some unscrupulous claims management companies are attempting to mislead customers through this dishonest activity.

"We have fought hard to ensure that European resorts continue to offer the best value all-inclusive packages for British travellers, and we are delighted to hear that the government is on the side of holidaymakers too."

Sign up for weekday travel news and analysis straight to your inbox

Latest travel jobs

Assistant Manager - Birkenhead

Assistant Manager - Birkenhead

Travel Consultant - Wallasey

Travel Consultant - Wallasey

Store Manager - Cameron Toll

Store Manager - Cameron Toll

Competitions

Our Next Events

Luxpo 2024

Luxpo 2024

TTG Top 50 Travel Agencies 2024

TTG Top 50 Travel Agencies 2024

TTG - Travel Trade Gazette
For Smarter, Better, Fairer Travel
B Corp-certified
TTG Media Limited.
Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU