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22nd July 2020UK travellers warned of surge in compensation scams for flight refunds
A claims management firm that targets airline passengers is facing criminal prosecution – just as this year’s holidaymakers are being warned of a surge in compensation scams during the coronavirus pandemic.
Flight Delay Claims Team (FDCT) and its officers, Martin, Naomi and Joseph Ryan, are to stand trial in January charged with fraudulent trading following a three-year investigation by Northamptonshire trading standards.
The company, run by the Ryan family from a house in Northampton, is one of many claims firms to cash in on an EU directive that entitles passengers to compensation of up to €600 if their flight is delayed or cancelled.
FDCT promises a “no-win, no-fee” service and invites passengers to fill out a web form to check if they are eligible for a payout. Those who submit their details report being pursued for bills of up to four figures, despite not receiving the promised payout.
Travellers are now being warned of a proliferation of companies offering to obtain refunds and/or compensation for cancelled trips this year.
“Fraudsters have been quick to take advantage of the fact that so many people have had to cancel or postpone their holidays as a result of the pandemic,” said Nick Downing, chief intelligence officer for the fraud prevention service Cifas.
He added: “Over the last couple of months we’ve seen a sharp rise in holidaymakers being contacted by criminals purporting to be from travel companies, tour operators and insurers offering to refund or rebook cancelled holidays, as well as setting up fake websites offering refunds and compensation to holidaymakers.”
Information source: The Guardian