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What If NCL files for bankruptcy? And we have cruises book ?

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Posted (edited)

I’ve tried reading up on if there’s any protection offered to us who will be requesting refunds, who have paid for future cruises in full. Does anyone know if there’s any sort of recourse, such as protection through the credit card companies etc? I have to say, the thought of losing my hard earned money that I paid for the cruise in the event of a bankruptcy is extremely stressful. 
 

*Edit to add that I tried researching this online, but the results were vague, at best. I plan on calling my credit card company soon to see if they have any information on what happens in these types of situations.

Edited by Murph269

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On 4/4/2020 at 11:36 AM, SeaShark said:

To further the post above, the FMC handles this through the Bureau of Certification and Licensing's Office of Passenger Vessels and Information Processing (OPVIP).

 

OPVIP issues certificates to operators of passenger vessels with 50 or more berths and that embark passengers from U.S. ports (PVOs). The Certificate (Performance) evidences that the PVO has on file with the Commission acceptable coverage to satisfy any liability incurred for nonperformance of transportation, such as when a PVO declares bankruptcy and fails to complete the cruises booked. The coverage is used to reimburse passengers when the PVO fails to perform cruises as contracted and has taken no further actions to refund passengers. The Certificate (Casualty) evidences that the PVO has acceptable coverage to satisfy any liability incurred for death or injury on file with the Commission.

Do we get full refund? Or partial?

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On 4/4/2020 at 9:31 AM, SeaShark said:

Sigh...

 

The problem with the whole Cruise Critic Chicken Little discussions of deposits, bankruptcies, and other fictional situations is that not all of the facts are being considered. For example, deposits are not revenue to a cruise line until the sailing takes place..it isn't their money to use. This is all governed by the Federal Maritime Commission's rules on financial responsibility.

 

The FMC requires cruise lines to have a bond or other financial surety available to refund passenger deposits if the cruise line fails to provide a scheduled cruise (performance) or for death or injury on a voyage (casualty). This requirement applies to cruise lines that embark from a U.S. port and have at least 50 berth accommodations.

 

The company (typically an insurance company) that issues the bond or other financial surety processes claims made for cruise cancellation or death or injury.

 

IF a cruise line were to go out of business, unearned revenue (deposits) are protected and would be refunded.

 

If that is true, then why would NCL want to hold refunds for 90 days?

 

Answer that!

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12 minutes ago, The Wanderer_112358 said:

If that is true, then why would NCL want to hold refunds for 90 days?

 

Answer that!

 

To alleviate a heavy drain on cash flow. With this crisis, most businesses are postponing payments to maintain cashflow to pay their employees. Mine is, and I know we're not alone.

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1 minute ago, anyman said:

 

To alleviate a heavy drain on cash flow. With this crisis, most businesses are postponing payments to maintain cashflow to pay their employees. Mine is, and I know we're not alone.

 

What you mean is that they don't have enough cash to pay everyone off right now.

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5 minutes ago, The Wanderer_112358 said:

 

What you mean is that they don't have enough cash to pay everyone off right now.

 

Not necessarily. If I knew how long this is going to be, I'd take a long look at my cashflow and possible make a decision to pay some payments, generally first in, first out. If I had to pay employees for 6 or more weeks, I'd make the choice to defer payments in order to keep my employees paid.

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Posted (edited)

As njhorseman already posted, the FMC bond is capped at $32 million and will cover just a tiny percentage of cruise fare liabilities.  That's not a real insurance policy.  It wasn't meant to cover refunding everyone in the case of an abrupt, entire line shutdown like this.

 

It is unlikely cruising will return in the US until a vaccine is approved and distributed.  I cannot picture any other scenario where cruising allowed, given the intense ability of viruses to spread on ships (long known before this situation), and the lack of access to good emergency medical care onboard.

 

This won't happen until 2021.

 

This is why I have told people they are FOOLISH to take any FCC instead of a cash refund.

 

Laughably, some people thought they were being smart consumers by taking 125% FCC and then booking a highly-marked-up "20% discount" cruise.

 

When this is all over, there's a good chance NCL will go under, and they'll never see that money again.

 

There is some chance that there will be some consolidation in the industry, and NCL is bought up by another company.  I assume FCCs will remain in place if that happens.  The brand would take too much of a hit if it didn't.

 

There is also a possibility that the entire existing cruise industry will go belly up, and then when this is all done, a new company will emerge, buy the ships, and will start everything up again fresh, with a changed business model.

 

It is sad watching some delusional people assume that cruising is just going to snap back to normal and start running again in May or June.

Edited by pokerpro5

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Posted (edited)

Agree on this - Until a vaccine (or other treatment) is ready how does a cruise line open up again?

 

If a cruise sailed May 1st to Alaska and you knew there was a good chance that even 1% of the people on the ship had no visible symptoms but were carrying the virus would you go? Would your mum go? Her mum? Would you take your kids? I'd be tempted for sure - its a very real dice roll - how lucky do you feel? I think people are seeing there is little rhyme or reason as to who this virus can kill - young/old as well as just old/underlying conditions. Not sure who would risk it.

 

If they can't run for, lets be optimistic even, 8-12 months can any of them survive in their current state?

Edited by pmd98052

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