Menu Toggle

Escrow Accounts

Are you are looking for an escrow arrangement to give financial security to your travel supply chain; or just to comply with the terms of your ATOL?

We offer travel escrow accounts  specifically tailored to the travel industry. Because we understand travel, we can set up arrangements in different ways, to suit different requirements.

Our escrow services can:-

  • Cover multiple suppliers;
  • Cover single arrangements involving just one supplier;
  • Pay overseas suppliers directly from the escrow account;
  • Release funds in a wide range of tailored, specified circumstances. For example, where the supplier or travel agent is insolvent; where customers have travelled or a booking has been cancelled;
  • Make payments in any currency.

Our travel escrow services cover both the drafting of the travel escrow trust deed as well as the set up of the banking arrangements to facilitate the transactions.

 

We are also experienced in setting up and running the escrow-style trust accounts that may be offered by the Civil Aviation Authority as a means of providing financial security as part of an ATOL renewal.

The CAA’s standard ATOL Escrow trust deed envisages the following structure:-

  • Separate designated trust bank account to be opened with a CAA approved bank supported by bank undertaking;
  • All consumer payments made for licenced sales to settle into an ‘interim’ bank account and a proportion of those funds – the ‘Agreed Protected Funds’ (usually something between 30% and 70%) will be deposited into the trust account in line with a weekly compliance certification process;
  • Any surplus funds in the trust account following application of the above will be released by the trustees from the trust account on the ATOL holder making a written ‘payment request’.

We can offer different support packages to assist you in implementing a CAA escrow-style trust account. These range from a ‘basic’ account operation package to a more involved look at the data you use to find the appropriate level of ‘agreed protected funds’.