Originally Posted by
clivegore
Nobody on here has mentioned that the credit card companies were holding back £50 million from tcx . This is outrageous that they can just refuse to hand over the cash and cause the business to become insolvent.
This is standard practice as agreed between the CC company and the merchant as part of their initial contract. The CC company keeps a proportion of advance payments (holidays and air tickets being a classic example) until the service is delivered, in case it has not been and the CC company is then on the hook for the refund. Thomas Cook would have known exactly what the Holdback percentages were and how they are varied.