STA Travel closure: Consumers paid last when company becomes insolvent, says NCC
The National Consumer Commission's Joseph Selolo said there is little legal recourse for consumers when a company goes into liquidation.
JOHANNESBURG – The sudden closure of STA Travel South Africa left customers wanting refunds for their cancelled holiday bookings.
The travel agency announced that it would cease trading on Monday.
Many consumers have been left wondering if they would be reimbursed.
The National Consumer Commission (NCC)'s Joseph Selolo said consumers were usually the last to be paid on a hierarchy of creditors when a company is liquidated.
He added that there is little legal recourse for consumers when a company goes into liquidation.
“This is one of the most complicated cases one would have to deal with. I really sympathise with the consumers.” Selolo said.
For more, listen to the audio below:
(Edited by Refilwe Pitjeng)
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