What happens when a company goes bust


What happened with Monarch and those that used their debit card to make payment for their holiday having to go through a lengthy process of getting their monies back.

My question is what protection or charge back facility does Starling offer if something goes wrong with a merchant.


I suspect nothing as that’s a credit card thing.

I would think that Starling may push a notification such as “I see you’re traveling with Virgin. Have you got your travel insurance sorted?”

Then links you to the market place.


If Starling says it’s on the side of the little guy (its Customers).

We need to know that they will not wash their hands of relative issues like a monarch when it arises.


I think you need a member of Starling to address this but I don’t think you’ll get payment protection in the instance of this monarch thing. No banks offer this. It’s a credit card thing.


This may provide some guidance for those interested:


Monzo’s approach was to contact all customers who had used their debit card to pay. They detailed the different processes if you bought direct from Monarch or via a Travel Agency, how ATOL and travel insurance firms can help, and if all else fails Monzo would attempt a chargeback on the debit card transaction

On the Monzo community a user posted screen prints of the lengthy message Monzo sent them (https://community.monzo.com/t/superior-customer-service-should-be-expected-from-all-banks/24429)


The protection isn’t down to the bank, its down to Mastercard or Visa.

I had the same issue with lowcostholidsays, my bank tried to deny they had to refund, they soon backed down when I presented them mastercards own rules, they had agreed to.

They only refund if there isn’t other protection in place, for example ABTA, ATOL and so on.


Another handy link on the subject:


Nice to see people’s take on this issue.

I would be interested to see Starling position and how it helps those that are affected by the points raised in this thread.


Give credit to my credit card company who text holders who had a monarch booking.
Section 75 is great for credit cards but there are a few loop holes to pass through - 3rd party payments restrictions on additional card holders.
As far as I was aware debit cards are charge back and reliant on the bank to refund you.
I think it’s a case of you win some you lose some.
I only had a hotel booking with a credit card but even I don’t know whether I will get my money back.


I really hope they don’t do that, I never EVER want my personal finances tracked and linked in with advertising. Scanning emails and linking relevant ads as Google do is one thing, scanning my bank account and presenting me with relevant ads (which is effectively what you have just described) is a completely different thing. For me, it’s a red line.


mmmmm :thinking:


I believe if you pay for a service or item which hasnt been delivered you can ask for a Chargeback via Mastercard.

However, if there is alternative protection offered - such as an ATOL in the case of Monarch (depending on how it was booked), then that is the first port of call.


Haliifax did the same, not as detailed a message but still a nice touch


Yes I was impressed with Monzo’s proactive approach. Within hours of the Monarch announcement they had contacted those customers who they could see had made relevant purchases on their debit card, and clearly laid out the various options and routes for recourse. Popping logos into transactions is all very well and good, but THAT’S how challenger banking will succeed in making their customers better off. Other banks could learn from this approach.


A pro active you have made a purchase with ‘x comoany’ who have recently ceased trading, please speak to us about your options is one thing, and a great idea but simply ooooo you have just bought a holiday, get a great deal on travel insurance with our good friends at ‘y insurance’ is a baaaad thing IMHO.

The issue there is it would have had to be manual searches and the problem is you do it once and I will expect it every time. It’s easy to know when a company the size of Monarch go under, it’s on the news, it’s a big thing, but would be much harder to offer the same service if a small or micro business went under and I wanted the same sort of service.


Why would it be manual? Monzo have the tagging of their transactions down to a fine art. Set up an automated search to return all transactions with monarch (Company X) and send out a message in-app. That’s not going to be difficult at all.

You seem to take the view best not aim too high or you’ll have to always try to exceed expectations. Nothing wrong with that. But I can see why you’d want to lower your expectations for other banks.


Sorry what I meant by manual was instigating the search. It’s more it’s easy to know when monarch go under, it’s not so easy to find out when “bobs awesome village quad biking” goes under which would be a situation just the same where I would want a chargeback initiated.