PROTECTING YOUR MONEY

The Package Travel Regulations (PTRs) stipulate that monies received by a travel company for travel which is deemed to be a package (includes accommodation, transport and guides) must be protected in some way against the travel companies insolvency. There are many ways of doing this and we have chosen a method called a Trust Account

What is a Trust Account and how does the Trust Account work?

In the travel world, a Trust Account is where money that a travel company has received from clients is held to keep it intact and safe until the contract between the 2 parties has been completed.

All payments received by a travel company go into a Trust Account so that, should the worst happen and the travel company become insolvent, the client’s funds have been held safely and intact for the client.

The funds within the account are managed by an appointed independent Trustee.

Once the contract between the travel company and the client has been completed, the funds can be released by the travel company for the company’s business use.

How does the Trust Account provide financial protection?

Your money remains in the Trust Account and is supervised by an appointed independent Trustee. Both the Travel Company and the Trustee are required to authorise the release of payments from the Trust Account.

Should the travel company become insolvent, client’s monies will be held in the Trust Account and be available to pay for the trip or be refunded to the client depending on circumstances.

What happens if something goes wrong?

If the Travel Company enters into administration, the Trustee will refund monies corresponding to issued invoices from the Trust Account to the client. Clients will be contacted by the Trustee to start the process.

 

If you would like to know more about how our Trust Account works please contact us on info@pieevents.co.uk or 01932 460 090.

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