Welcome to our August Newsletter
The 90s were the birth of the internet, the noughties saw every business go online, and in the last five years rogues, cowboys and scammers have made it their own. That’s why you need Checkaco to be sure the business you are about to spend your hard-earned cash with isn’t about to go bust.
Hundreds of consumers every month use Checkaco to ensure they don’t lose out to firms that take their cash and then shut up shop – just like Carpetright have done this summer. Their customers thought their deposits were safe while contractors and sole traders who took the work of fitting flooring find they won’t be paid. A Checkaco company search would have revealed the business was millions in debt and unable to pay their bills.
Our regular news published on our website highlights sharp practices, scandals, scams and Ponzie schemes – bringing home the need to be cautious and to always be aware there are conmen out there along with scammers keen to rip you off.
In this issue we listen to travel journalist Simon Calder’s tips on how to spot a holiday scam and reveal the sad story of German based tour operator FTI Group and holiday giant has gone bust leaving hundreds of customers out of pocket and without a holiday.
Lots of stories and we hope you are both entertained and reminded that when spending a lot of money to always check the company first in case the worst happens.
Kind regards
Pervis Chapel
Operations Manager of Checkaco
For more details visit https://checkaco.com/
Or email me at info@checkaco.com
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NEWS
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The Independent’s travel guru Simon Calder lists 7 ways to spot a holiday scam
By Rupert Bridgwater: With his lightweight travel suit, collar and tie and his schoolboy enthusiasm for the subject of travel and holidays The Independent newspaper’s Simon Calder is a regular contributor on TV news. Especially when things go wrong. Ahead of the school holiday season he lists the 7 ways to spot a scam and ensure you don’t pay fraudsters for holiday lets that don’t exist. Every year holiday makers lose millions of pounds to scammers with horror stories of families turning up at apartments in Spain and France only to find they’ve been conned, and their holiday accommodation is owned by someone else or doesn’t even exist.
Simon Calder is one of the nation’s most trusted travel writers and broadcasters having spent more than 30 years working for the Independent and also across TV and radio. He gained his reputation as someone who paid for his travel and didn’t take freebies and giving plugs to travel companies. As a result, his opinions carry considerable weight.
1 Low prices: we all like a bargain and when we see a really low price for a holiday it is tempting to immediately book it. Don’t! Do a Checkaco on the firm and if they have a track record of not paying their bills or don’t exist – do not use them.
2. Identity theft: never let a holiday firm insist they must have a scan of your passport or driving licence as they may well be scammers. Only legal reasons at passport control or at a hotel, or airline where they may ask to see your passport are excepted
3. Contact: Check to see if the address and phone number of a holiday property advertised are in the same country. If they are not then alarm bells should ring especially if there is no phone number. Simon Calder gives this piece of advice: “If a business says it is a member of Abta, the travel association, then use the very straightforward checking system to confirm its membership status – ring the landline shown on the Abta website to ensure that you are dealing with that company.”
4. Cloned sites: scammers will often use graphics and images from genuine airlines and holiday companies to trick you into using them to book. If in doubt phone the number on the website to check if it is authentic.
5. Fake owners: to check the property you plan to rent on holiday ask for a land line number to check the dialling code is right for the address. Ask some basic questions like where is the nearest shop or café, so you can cross check the details to see if they are genuine.
6. Payment: do not pay by bank transfer as this is a con. Pay by credit card.
7. Hassle: if the holiday company or owner of a holiday property tries to pressure you into a quick decision or even offers a discount if you decide immediately – beware. It is a classic ploy of fraudsters wanting to force you into a decision and to defraud you.
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Confusion for tourists who have booked vacations as one of Europe’s largest tour firms goes bust
By Rupert Bridgwater: A classic case of fingers being burnt as a holiday firm has gone bust has been revealed this summer German based tour operator FTI Group has collapsed owing hundreds of thousands of pounds of customers’ cash. The group’s British accommodation specialist subsidiary called Youtravel.com known as its ‘bed bank’ cancelled bookings up to 11th June, 2024, with any bookings up 26th July, 2024, also cancelled.
Pervis Chapel of Checkaco said customers of the travel firm will have little likelihood of getting their deposits back if they booked directly through FTI. He said: “A Checkaco credit check last month would have shown FTI were in trouble as on Monday, 3 June 2024, FTI Touristik GmbH, the parent company of the FTI GROUP, filed for the opening of insolvency proceedings. Since the group use the so-called bed bank and Loveholidays then British holidays are in jeopardy over their deposits.”
The Daily Mail has reported that one customer called Annie Cox from Birmingham has paid a further £900 to ensure her holiday in Morocco remained booked leaving her out of pocket. Other holiday makers are also having to rebook their holidays with their original bookings and deposits in doubt. Loveholidays are Atl-protected so refunds are guaranteed but having to rebook and pay more cash is the last thing people want before a vacation.
In a statement, Youtravel.com said: ‘The insolvency of FTI Touristik GmbH has had a significant impact on Youtravel.com. Over the past three weeks, our management has been actively engaging with the appointed administrator of the FTI group and undergoing the M&A process to secure our future.
‘Whilst we are hopeful for a positive conclusion to these talks soon, we have made the difficult decision to cancel all bookings until and including the 26th July, 2024. We understand the inconvenience this may cause and sincerely apologise for any disruption. Any active bookings in the Youtravel system for arrivals up to and including July 26th will be automatically cancelled without any charges by Monday, 1st July 2024.’
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Hundreds of Everest customers lose their deposits after window company went bust again (and the signs were evident in April)
By Rupert Bridgwater: Ordering new windows, or door or a conservatory for your home entails an outlay of thousands of pounds which is fine when the work is complete. If however, the firm goes bust you have paid a small fortune with little chance of being fully re-imbursed. That is what happened to customers of Everest, the double-glazing firm whose slogan used to be ‘fit the best fit Everest.’
In April this year the company went bust for the second time have collapsed five years ago and rescued to continue trading under new owner Jon Moulton of Better Capital in what is known as a pre-pack which basically meant they could dump their debts and leave customers out of pocket but retain jobs at the company. Now it has happened again and it is consumers who are paying the price with insolvency specialist Re-Solve trying to find a buy for part of the business and settle some of the debts.
Around 1,500 customers have been left with unfulfilled orders, most having paid out thousands of pounds for windows, doors and conservatories that may or may not be fitted. The reason they may be fitted is that Resolve have contracted Anglian Windows to take over those orders – but there are strings attached. Firstly there’s no guarantee deposits will be repaid as Everest owes over £30 million pounds – something that a Checkaco credit check would have shown back in April before the firm collapsed.
Pervis Chapel of Checkaco said that it is highly unsatisfactory as people often spend their life savings on updating their property to maximise its value. He said: “Then they find they may not see any of the thousands they have forked out and have phone a helpline at Anglia in the hope they can complete the work. It has been made clear that Anglia may not be able to do the work and those properties where work was started could even see customers without windows in place after work suddenly stopped.”
Writing for Money Saving Expert website, Molly Greeves noted: “It’s unclear if Anglian will fulfil ALL outstanding Everest orders – including those for doors and conservatories, alongside windows – we only know that orders will be fulfilled “where possible”. If you don’t hear anything within a few weeks or you have an urgent query, contact Anglian via email or phone 0800 876 6810. If your installation can’t be completed as planned and you’ve been left out of pocket because you’d already paid Everest for some or all of the work, you can try to get your money back by registering with ReSolve as an unsecured creditor or filing a Section 75 or chargeback claim.”
Pervis Chapel of Checkaco said that a credit check for just a few pounds would have saved customers thousands. He said: “In April and before that in the weeks running up to the insolvency it was clear there were financial problems. They owed money left right and centre and a Checkaco report would – and indeed did – set off the warning lights.”
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Customers have the rug pulled from under them as Carpetright collapses leaving them without a penny (but were there tell tale signs of trouble brewing)
By Rupert Bridgwater: You’ve paid out hundreds of pounds for that new carpet and await for it to be delivered and then find out the company has collapsed and you’ve lost every penny. That’s the unhappy experience of customers of retailing chain Carpetright the collapsed this month owing hundreds of thousands of pounds for deposits and down payments that will never be repaid.
Reporting for the Retail Gazette Aoife Morgan noted: “Carpetright suppliers, customers and landlords have been left £80m out of pocket following the chain’s collapse at the start of the week. According to documents seen by The Times, the flooring specialist’s trade creditors including Condor and AW Weavers were owed around £24m at the time of its collapse. Carpetright also owes £30.9m to “other creditors”, including customers, as well as £15.6m to “other accruals”. The documents showed the retailer had built up £81.7m worth of liabilities on its balance sheet by the end of April, which is understood to have “not changed materially” since then.”
Founded back in 1988 in London I grew to open 273 shops across the country and employ close to 2,000 staff and was supplied by hundreds of companies who now face losing their trade and unpaid invoices. The BBC reported earlier this week that Tapi Carpets & Floors has bought the Carpetright brand name, the company’s intellectual property, two warehouses and 54 stores, saving 308 jobs. But that leaves suppliers unpaid and over 1,200 staff without a job.
Pervis Chapel of Checkaco said there were numerous signs that the firm was in trouble. He said: “It is no secret that the carpetright didn’t have the highest of reputations for customer service as online there have been lots of complaints suggesting the company ‘ripped off customers’. In the spring of this year there were a string of resignations from the company including the company secretary. Checkaco also heard of a number of anecdotal stories of customers paying for carpets to be fitted but waiting ages for delivery. Also suppliers like Condor and AW Weavers were known to be owed huge amounts of cash by Carpetright. All the signs were there – which is why Checkaco allows customers of retailers who are going to spend hundreds or even thousands of pounds to check the firm they are buying from is financially secure.”
The media have been full of sad stories of customers who have lost out including this one from the BBC: “Sian Bowers, 40, from Dagenham spent £681 on new carpet for her home earlier in July and fears she has lost her money. The mother-of-two told the BBC she has already called the company and been told her order won’t be sent.”
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