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Flyglobespan customers may receive just 5% of fare paybacks

PricewaterhouseCoopers, the administrators to the fallen Flyglobespan operation, has today revealed that unsecured creditors may receive just 5% of money owed. Unsecured creditors include paying passengers who were unable to use the service and who did not pay by credit card or debit card. Despite the fact that £34 million has allegedly been held back by credit card clearing group E-Clear there is grave uncertainty as to whether this money, which was allegedly due to Flyglobespan, will ever be received.

Flyglobespan was one of the more high-profile airline failures of the last two years leaving around 40,000 individuals out of pocket. Even though 80% of customers appear to have reclaimed their fares via the consumer protection scheme, having used credit cards or debit cards for payment, there are many customers, suppliers and employees who still remain out of pocket months after the collapse.

PricewaterhouseCoopers believes it will take up to 2 years to process all claims with regards to Flyglobespan and the administrator has called for a strengthening of consumer protection laws with regards to future business failures. There is no doubt that this particular collapse caught many by surprise and in many ways the financial squeeze was very much out of the company's hands with E-Clear playing a prominent yet unclear role in the situation.

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