March 21, 2012

Direct Air update

Like predicted people are not getting reimbursements for tickets.  Why?   The escrow account must me tapped out by now.   

This Chapter 11 bankruptcy should turn into a Chapter 7 shortly.

11 comments:

Steve Foley said...

It's interesting that the legislators are calling for Direct Air to violate bankruptcy laws and provide refunds, circumventing the bankruptcy trustee.

I also haven't seen any reported instances where an individual was unable to obtain a refund from the credit card company.

Bill Randell said...

Steve


Good point on the bankruptcy laws.

I have heard of people getting refunds from their credit cards but that technically is not correct. The credit card company is just a conduit. They ask Hudson Valley, the escrow company, for the monies back. Once the credit card company gets the money back then they credit the card. The credit is coming from the escrow compnay not the credit card. Once the escrow account is bone dry, which it is by now--there will be no more credits on any credit cards.

Bill

Steve Foley said...

Bill Wrote: "Once the escrow account is bone dry, which it is by now--there will be no more credits on any credit cards."

I don't think that's correct. The Fair Credit Billing Act protects consumers against "Charges for goods and services you didn’t accept or weren’t delivered as agreed upon". This would certainly qualify for services that weren't delivered.

It will be the credit card companies left holding the bag on this one, not the consumers. That is part of the risk they accept when they take on a merchant account, and the loss will easily be offset by the fees they have charged DA in the past. The last credit card machine I had took 3.5%.

People using debit cards may not have the same protection.

One of the links above also discusses a school system that paid for tickets, but there's no mention of a credit card. I think they may end up at the 341 (creditor's) meeting when the 11 converts to a 7.

Bill Randell said...

Steve

You dont know what you are talking about..

If I were to order speakers from Bose and I never got them. I could call my crecit card company and most likely get it credited back. Since the credit card company will get the money back from Bose.

Direct Air is out of business. The credit card company is not going to give back monies based once the escrow is tapped out. Do you have any idea how much this would cost the credit card companies..

We could go on and on, but the bottom line is people are not getting their monies back anymore so what does that tell you.

Bill

Bill Randell said...

Steve

You dont know what you are talking about..

If I were to order speakers from Bose and I never got them. I could call my crecit card company and most likely get it credited back. Since the credit card company will get the money back from Bose.

Direct Air is out of business. The credit card company is not going to give back monies based once the escrow is tapped out. Do you have any idea how much this would cost the credit card companies..

We could go on and on, but the bottom line is people are not getting their monies back anymore so what does that tell you.

Bill

Steve Foley said...

See This Article

"When a processor agrees to clear a company's credit-card transactions, the processor then becomes responsible for providing customer refunds. When an unhappy consumer asks their credit-card company for a refund, the credit-card issuer gets that money from the processor. The processor, in turn, pulls the money from the merchant's account. If the merchant has gone under, the processor has to eat the loss. With business bankruptcies on the rise, processors fear dishonest merchants might close up shop and skip town, leaving the processor on the hook for any refunds. "Before bankruptcy, some [unscrupulous] merchants will create lots of transactions," says Richard Speer, CEO of financial consultancy Speer & Associates, based in Alpharetta, Ga. Common triggers for the establishment of a reserve include a sudden surge in activity and individual transactions that have large dollar amounts. "

Bill Randell said...

Steve

You can send me links to whatever you want. Processors are not going to give refunds when they are not going to get monies back from 1)escrow account, 2) the bond or 3) the company.

It is just that simply. if you look on line it is already happening. People are not getting their monies back.

Bill

Steve Foley said...

Then the credit card processors are violating federal law.

Funny how you leave up your accusation that I don't know what I'm talking about, but fail to 'approve' my response.

You go ahead and keep spewing your misinformation.

Anonymous said...

Steve and Bill:
I contacted both my VISA Credit Card company and also my debit card company as I had charged 2 sets of tickets on the CC and 2 on the debit. The CC company recorded my claim and said that I would be resolved either way within 30 days. I was quite surprised when the debit card company told me that my money would be "temporarily" refunded within 10 days (it was refunded in 5). They will continue to investigate and depending upon the outcome, they could reverse the credit, but the person I spoke with said that that was unlikely due to the Fair Credit Billing Act. I didn't/won't be receiving the "goods", so therefore, my money should be refunded. I am leaning on the positive side and will update you if I hear anything positive.

Jahn said...

Bill, I "think" Steve is correct. CC eats it. Used to be CC co's could walk away b/c they were deeemed to be holders in due course. That all changed a long time ago and although they are still holders in due course the laws were changed and they are on the hook, esp. when many CC cos issue this form of insurance to draw in customers to use thier CCs.

Anonymous said...

I have not been able to obtain a refund from my credit card company. I have tickets for use in June, therefore my credit car company says I have to wait, until Direct Air announces more information as to the Chapter 11 restructuring