Thousands of holidaymakers have had their summer get-away ruined after the collapse of tour operator Holidays 4 U.

The Sussex-based firm, which sold trips to Turkey, went into administration today, leaving 50,000 with future bookings without a holiday in the middle of the peak summer period.

On the positive side, those affected will have the cost of their package or flights refunded by the UK’s Civil Aviation Authority (CAA), under its Atol guarantee.

Meanwhile, anyone currently abroad can continue their holiday as normal as the CAA will ensure they are flown home at no extra cost, again under the Atol protection.

How many people are affected?

Holidays 4 U has 13,000 customers currently on holiday and 50,000 booked on future flights.

My holiday’s not yet started. What should I do?

All future Holidays 4 U packages and flights are now cancelled.

Anyone with a package or flight-only deal from Holidays 4 U is fully protected. They can claim a refund from the CAA (see its website for details).

There is a chance those with flight-only deals may be able to re-book the same seat.

Holidays 4 U only sold seats on airlines; it isn’t a carrier, so call the relevant carrier to check. In most cases, it will be Turkish budget airline Onur Air.

I’m currently overseas. What should I do?

The CAA says those on holiday now are unaffected and can continue in any accommodation as normal.

It will ensure all customers due to fly home in the coming weeks will be able to do so as planned.

Travellers should arrive at the airport for check-in as normal for their flight home, as it will pay the airline for the fare.

However, it adds that in some cases passengers may be placed on alternative flights home. If there are any flight changes, information will be placed on the Atol website.

Holidays 4 U customers currently abroad can call the CAA on +44 (0)161 444 5810 for help.

In some cases, hotels may ask guests to pay for their stay again they’d have already paid when booking the package even though the CAA will reimburse the accommodation provider.

The problem is some hoteliers overseas do not understand the Atol protection. The CAA says, if you’re forced to pay, keep all receipts and claim the cash back from it when you return.

What about unaffected accommodation/other holidays costs?

Any separate accommodation booked with a travel agent, or any other holiday booking such as car hire and excursions is not protected by the Atol scheme if you are unable to use it if you can’t reach your destination.

Try to get any elements refunded. If unsuccessful, try to claim on your travel insurance (see below).

If you booked accommodation or other holiday extras on plastic it is unlikely you’ll get compensation from your card firm.

Under section 75 of the Consumer Credit Act you can get a refund from your plastic provider if the retailer/travel firm breaks its contract, if you paid over 100.

In this case, only your flight or package has been cancelled, not anything outside that booking. So accommodation/car hire/other providers will still offer that service.

Visa and Mastercard run voluntary schemes offering a similar guarantee, which again is unlikely to pay out.

Will travel insurance pay out?

If you’ve booked non-refundable accommodation or other extras, call your insurer.

Whether you get a payout depends on the policy. Many insurers cover cancellation but not all do so there is no one-size-fits-all answer.

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Thousands of holidaymakers have had their summer get-away ruined after the collapse of tour operator Holidays 4 U.

The Sussex-based firm, which sold trips to Turkey, went into administration today, leaving 50,000 with future bookings without a holiday in the middle of the peak summer period.

On the positive side, those affected will have the cost of their package or flights refunded by the UK’s Civil Aviation Authority (CAA), under its Atol guarantee.

Meanwhile, anyone currently abroad can continue their holiday as normal as the CAA will ensure they are flown home at no extra cost, again under the Atol protection.

How many people are affected?

Holidays 4 U has 13,000 customers currently on holiday and 50,000 booked on future flights.

My holiday’s not yet started. What should I do?

All future Holidays 4 U packages and flights are now cancelled.

Anyone with a package or flight-only deal from Holidays 4 U is fully protected. They can claim a refund from the CAA (see its website for details).

There is a chance those with flight-only deals may be able to re-book the same seat.

Holidays 4 U only sold seats on airlines; it isn’t a carrier, so call the relevant carrier to check. In most cases, it will be Turkish budget airline Onur Air.

I’m currently overseas. What should I do?

The CAA says those on holiday now are unaffected and can continue in any accommodation as normal.

It will ensure all customers due to fly home in the coming weeks will be able to do so as planned.

Travellers should arrive at the airport for check-in as normal for their flight home, as it will pay the airline for the fare.

However, it adds that in some cases passengers may be placed on alternative flights home. If there are any flight changes, information will be placed on the Atol website.

Holidays 4 U customers currently abroad can call the CAA on +44 (0)161 444 5810 for help.

In some cases, hotels may ask guests to pay for their stay again they’d have already paid when booking the package even though the CAA will reimburse the accommodation provider.

The problem is some hoteliers overseas do not understand the Atol protection. The CAA says, if you’re forced to pay, keep all receipts and claim the cash back from it when you return.

What about unaffected accommodation/other holidays costs?

Any separate accommodation booked with a travel agent, or any other holiday booking such as car hire and excursions is not protected by the Atol scheme if you are unable to use it if you can’t reach your destination.

Try to get any elements refunded. If unsuccessful, try to claim on your travel insurance (see below).

If you booked accommodation or other holiday extras on plastic it is unlikely you’ll get compensation from your card firm.

Under section 75 of the Consumer Credit Act you can get a refund from your plastic provider if the retailer/travel firm breaks its contract, if you paid over 100.

In this case, only your flight or package has been cancelled, not anything outside that booking. So accommodation/car hire/other providers will still offer that service.

Visa and Mastercard run voluntary schemes offering a similar guarantee, which again is unlikely to pay out.

Will travel insurance pay out?

If you’ve booked non-refundable accommodation or other extras, call your insurer.

Whether you get a payout depends on the policy. Many insurers cover cancellation but not all do so there is no one-size-fits-all answer.

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Discuss this MSE news story: Holidays 4 U collapses

Millions of households face a sharp rise in the cost of gas and electricity as the first of the summer price hikes comes into force.

Scottish Power is today raising electricity prices by a typical 10% and gas prices by a whopping 19% on average, in a bitter blow to 2.4 million households.

The rise affects all Scottish Power customers other than the 700,000 on a fixed or capped deal and will see typical dual fuel bills (where both gas and electricity is supplied) soar by a mammoth 175 a year.

British Gas is raising prices by up to 18% on 18 August, while Scottish and Southern Energy (SSE) will increase rates by up to 18% on 14 September.

The trio blame a rise in the cost of wholesale energy (the power they buy to then sell to us).

EDF, Eon and Npower are all expected to increase the cost of power but have yet to announce their plans.

Escape lock-ins

British Gas and SSE customers can escape from variable tariffs that appear to lock them in, if they’d benefit from switching.

Many gas and electricity deals come with an exit fee of up to 100 (though typically around 60) for those who leave before the term of the deal ends.

But where a supplier puts prices up, because that results in a contract change that’s detrimental, rules from regulator Ofgem mean many consumers don’t need to pay that penalty as long as they inform their power firm they wish to switch before the increase.

Therefore, it is now too late for Scottish Power customers.

The amnesty does not apply to those on a fixed rate deal because the price of their tariff will not rise, due to the nature of the product.

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Your energy bills are caught on the horns of a ‘trilemma’ as huge demand, a creaking network and ‘green’ energy targets take their toll, says Andrew Horstead (right), risk analyst at energy and carbon management specialist Utilyx.

The ‘Big Six’ energy suppliers have recently been in the media spotlight following two of their number’s decision to raise energy prices by as much as 19% as we head into the summer months.

We’re almost used to the fact that prices will go up towards winter when the thermometer goes down and the thermostat is cranked up, but this warm-weather price rise set alarm bells ringing for many.

So why are energy bills rising? The answer is simple. Britain is currently facing an energy ‘trilemma’ that stems from three major problems and ultimately consumers stand to pay the price.

Before examining the issues, though, it’s worth a reminder of exactly how your energy bill is costed.

Your bill

The final bill sent to you is much more than the ‘wholesale’ price of the energy itself, whether it’s gas or electricity – in fact, energy usually equates to just over 50% of its total. In addition are ‘non-commodity’ charges which cover the cost of actually getting the energy into your home or business.

This includes the maintenance of the vast pipe and cable network that carries energy to you, as well as VAT and the cost of various obligations set by the government to move the UK towards renewable energy.

Unfortunately, whichever of these costs you look at, it’s set to rise.

So the first problem in the energy trilemma is the raw commodity itself. While Britain has always enjoyed some ability to harness the natural gas in the North Sea, in recent years these reserves have declined and Britain has become more and more reliant on importing its energy needs.

Gas, gas, gas

Today, the UK is Europe’s largest user of gas and is the world’s fastest growing major gas importer. While this might seem to be a simple supply and demand exchange, it means that Britain is at the mercy of events happening around the world all of which can have an impact on the price we pay and the security of our energy supply.

For example, the tragic events in Japan in the wake of the tsunami and the unrest in Libya led to oil prices rising by 32% so far in 2011 alone. These type of events usually lead to an immediate short-term hike in energy prices as supply is called into threat, but the effects can be felt for many months.

While the big six suppliers will argue that price hikes are largely in response to changes in the wholesale market, there are also a number of other pressures bumping up your energy bills.

Urgent upgrade

The second horn of the trilemma is our energy network’s desperate need of an upgrade. It has been estimated that the cost of upgrading the UK’s electricity connections to meet key climate change targets could cost as much as 5billion.

This upgrade will be the largest investment in the grid for over fifty years and is likely to require over 600 miles of cabling to connect new energy sources such as wind-farms and new nuclear builds to the network all of which comes at a cost.

It’s vital though that we make this move to renewable energy in order to reduce carbon emissions and safeguard the UKs future energy supply.

Green energy

However, this brings us to the trilemma’s final part – green energy targets that suppliers and businesses must meet in order to meet government obligations. Investment in nuclear energy, wind and wave power are central to this all are necessary but come at an additional cost to consumers in higher bills.

The UK’s energy trilemma is largely one of its own making but it’s vital that we use this opportunity to make a lasting change to the way we generate and ultimately use energy. Here’s how you can take steps to reduce both your energy consumption and spend:

• Measure, manage and reduce the energy you use small changes really do add up to a big difference to the environment and your pocket
• Get the best deal while we all need to reduce the amount of energy we use in the long-term, it’s worth shopping around for the best deal for you in the short-term
• Think about generating your own energy producing your own energy through solar panels or wind turbines will cut help cut out the transition costs that are currently included in your bill

Views expressed are not necessarily those of MoneySavingExpert.com.

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Consumer victory as mobile operators could be forced to slash data roaming costs, but using the web on your smartphone abroad could still land you a mammoth bill.

The European Commision (EC) today outlined new proposals to cut the cost of using mobile internet devices when travelling in the EU, by capping the amount operators can charge for data (the cost of being connected to the internet via a 3G network).

If the EC’s proposals are accepted, networks will only be able to charge:

• Max 0.50/MB for data




• Max 0.24 for making a call




• Max 0.10 for receiving a call






• Max 0.10 for sending a text will remain.

Operators will continue to cap data usage at 50 per month unless a different limit is agreed by the user.



These proposals will replace the current regulations which end 30 June 2012.

Speaking at a conference in Brussels, Neelie Kroes, the EC vice president of the Digital Agenda, says: “A mobile should be mobile.

“But many people currently switch off their phones, smart phones and other mobile devices when travelling to another EU country because the current prices for roaming calls, texts and data access are so high.

“Competition is still very weak. Customers still get a raw deal when they cross borders. Operators still enjoy outrageous margins, particularly on data downloads.”

Mobile operators have until June 2012 to dispute the proposals, otherwise the new prices will come into effect by 1 July 2014 and will be in place until at least 1 July 2016, when the EC will review the market again.

Big bills for roaming abroad

But even though prices will be capped, you could still arrive back from your jollies to a huge mobile bill, experts warn.

With over 33 million Brits planning to take their smartphones abroad with them this summer, price comparison website uSwitch.com has advised holidaymakers to take care when turning their mobiles on overseas.

Uploading a photo to Facebook or Twitter will use around 2MB per photo it calculates. Even with the new price caps in force, it will cost you an extra 1 on your bill per picture.

2MB of data is also roughly equivalent to surfing the net for just under two hours, or sending around 200 emails without attachments.

Kroes says she believes the EC’s proposals will open up the mobile data market however, and could mean alternative operators may begin to offer more competitive data bundles.

Beat roaming charges

Until then however, here are some tips to help you cut the cost of data roaming abroad:

• Use free wi-fi: Find free wi-fi hotspots abroad so you can roam for free without using 3G. Sites like Free Hotspot and Hotspot Locations find free hotspots near you.

  
  




• Check add on bundles: As with traditional roaming, providers offer data add-on bundles. While pricey, they can help cut costs if you’re planning to surf the net a lot.

  
  




• Turn off 3G: By turning data roaming off, you should protect yourself from hefty charges, however beware of apps and games that need web access to run – they may turn your 3G back on automatically.

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Sky is to up its call costs tomorrow and Virgin Media users will also face telephone price rises from August.

Sky customers will see price increases tomorrow, while Virgin Media customers will also see telephone hikes from 1 August.

Both the price changes include huge line rental increases with Sky increasing its line rental cost by 1 and Virgin upping its by 91p.

These price rises follow on from BT and Talk Talk’s phone increases introduced in April (see the BT and TalkTalk hike phone prices again news story).

Sky price increases from tomorrow

• Line rental: The monthly price of line rental will be increasing to 12.25 from 11.25.
• Connection fee: The connection fee for non-inclusive calls will go up to 12.5p from 10.11p.
• UK landline rates: Sky Talk Freetime customers will face increases on their daytime weekday calls, as prices go up to 7.6p per minute (plus a 12.5p connection fee) from 6.03p, when calling numbers starting with 01,02,03 and 0870.

However, Sky Talk says its monthly call subscription costs will not change tomorrow. These will remain free for Sky Talk Freetime customers and cost 5 per month for Sky Talk Unlimited customers.

A Sky spokesman says: “Like any company, from time to time we review our pricing. When we do so, we focus on delivering the best combination of quality, innovation and value.”

Virgin price increases from 1 August

• Line rental: The monthly price of line rental will jump to 13.90 from 12.99.




• Connection fee: The connection fee for non-inclusive calls will also be rising to 13.24p, up from 12.24p.

Virgin last upped its line rental costs by 75p only three months ago on 1 April. However, as part of the 1 August price changes it is making calls to numbers beginning with 0870 free, when made during the inclusive period of your call package.

A Virgin Media spokesperson says: “For customers with our home phone service, we’re making a small increase to our line rental and call connection charges for both our cable and national customers.

“From August 1st 2011 line rental will increase to 13.90 per month. The good news is unlike some of our competitors our off-peak call times will remain from 6pm-6am so our customers can talk to friends and family for longer during the evenings for less.”

How to beat price hikes

You can halve the cost of line rental, unless you’ve a cable or Kingston communications line, by getting Primus’s Line Rental Saver, which is currently 6.79 per month for a year without calls.

Alternatively, Primus’s Home Phone Saver is 7.99 including landline, evening and weekend calls.

Also, check whether you can sign up to a no-frills ‘override’ calls provider, such as 18185, which, when dialled as a prefix, will allow you to cut the cost of daytime calls to landlines to 5p per call or 1p/min from a Sky or Virgin landline.

Override providers will also enable you to cut the cost of calling mobiles by charging a 5p connection fee and then 6p per minute, although the price is less competitive at weekends.

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An MP leading the charge to cap the cost of payday loans and other short-term lending says she will press for legislation in upcoming talks with the Treasury.

Labour MP Stella Creasy says the practice of many firms is exploitative given expensive loans are often aimed at some of society’s poorest.

She is due to meet Financial Secretary to the Treasury Minister Mark Hoban soon to discuss the subject.

This includes the fact lenders sometimes charge over 4,000% interest, which results in charges that can add up to a large proportion, or even exceed, the amount borrowed.

Creasy says: “We now have a wealth of evidence that more and more people are experiencing severe financial hardship as a result of the loans they have taken out with payday and doorstep lenders, a fact that Treasury ministers have now acknowledged.

“It is not enough merely to recognise the problem and then do nothing. I will therefore be pushing for legislation introducing a range of caps on the cost of credit when I meet the Treasury minister next week.

“There is strong cross party support for action.Britain’s consumers deservethe same protection from these exploitative practices as other consumers across the world.”

In some cases, someone who borrows 207 over 20 days pays 47.42 in charges, which is almost a quarter of the initial amount. Figures show one in ten payday loan borrowers earns 11,000 or less.

Creasy says one of her constituents was being chased by one firm, Wonga, for 1,600 as she was 40 days late paying when she only borrowed 800 in the first place.

She previously proposed a limit on the amount payday, doorstep and hire purchase lenders can charge in parliament in February, to take immediate effect.

This was partially defeated in a vote, though the amendment instead called for ministers to be given more time to consider new measures, to which consumer affairs minister Ed Davey said he will consider.

Creasy criticises Davey for refusing to meet with her on the subject, though his department, the Department for Business, Innovation & Skills (Bis), says he has met her twice over the past few months.

A Bis spokesman says: “The Minister takes his responsibilities very seriously his key priority is protecting the rights of consumers.

“The problems around personal debt are important which is why we launched a call for evidence in the last year and we are currently considering our response and will bring forward proposals in due course.”

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Homeowners considering remortgaging were today told to sit tight as commentators predict fixed-rate deals have further to fall.

A number of lenders have cut the cost of fixes in recent days, after a run of economic data has made an imminent rise in interest rates appear less likely than previously thought.

Earlier this year, the Bank of England’s Monetary Policy Committee had been widely expected to increase the cost of borrowing from its record low of 0.5% this month, to rein in soaring inflation.

But figures showing gross domestic product rose by just 0.5% during the first quarter, combined with a surprise fall in inflation during March, have caused economists to push back forecasts for future rate hikes until August at the earliest.

This change in opinion has had a knock-on affect on swap rates, upon which fixed rate mortgages are partially based.

Two-year swaps have fallen from 1.91% in early April to 1.58% now, while five-year ones are 0.41% lower at 5.68%.

Figures from financial information group Moneyfacts show the average cost of a two-year fixed rate mortgage has dropped to 4.5%, down from 4.58% in March, while five-year fixed rate loans now average 5.62%, compared with 5.66% two months earlier.

Barclays’ lending arm, the Woolwich, and nationalised bank Northern Rock both announced they were slashing the cost of their fixed rate mortgages today, with Barclays cutting some of its rates by up to 0.1% and reducing arrangement fees, while Northern Rock has cut its deals by up to 0.57%.

A number of smaller lenders have also trimmed their rates, and other major players are expected to follow suit during the coming week.

Ray Boulger, senior technical manager at broker John Charcol, says: “People looking for a fixed rate mortgage should sit tight because I think we are going to see rates get a bit lower.

“There has been quite a marked change in outlook among economists, with most putting back forecasts for rate rises until at least August, or even November.

“I think we will see swap rates fall further, with five-year fixed rates becoming available at below 4%. There is no rush to switch in my view.”

The latest advice is a far cry from what mortgage brokers were suggesting in January and February, when they urged those who wanted to move on to a new deal to act fast before it was too late.

Boulger says: “That advice was absolutely right at the time. Five-year fixed rate mortgages of 3.69% were available. The cheapest rate now is 4.39%. If you got in at below 4%, you got in at a good rate.”

Further reading/Key links

Top MSE Guides:
The Remortgage Guide, Free Mortgage Guide, Cheap Mortgage Finding, Mortgage Protection, Mortgage Arrears Help

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