Direct Air’s Parent Co. Files for Bankruptcy - Refund Information

Saturday, March 17, 2012

GoLocalWorcester News Team

As GoLocalWorcester first reported on Monday night, Direct Air had cancelled all flights. Now, Direct Air's parent company has now files Chapter 11 bankruptcy protect in federal court.

Obtaining a Refund

Consumers affected by Direct Air’s cessation of service who are due a refund need to be able to prove to the escrow bank and surety bond company that they purchased charter air transportation or an air charter tour package from Direct Air. Acceptable proof might include a Direct Air receipt or invoice, or possibly the consumer’s credit card purchase record.

Under Department rules, consumers may request a refund from Direct Air by writing to the company at 1600 Oak Street, Suite B, Myrtle Beach, SC 29577, with a copy sent to the company’s escrow depository bank, Valley National Bank, at 1455 Valley Road, Wayne, NJ 07470. When we receive directions on how and where to file bankruptcy claims, we will revise this fact sheet.
Consumers may also be able to recover funds by making a claim under Direct Air’s surety bond.

The bond number is 41060098. The holder of Direct Air’s surety bond is Platte Insurance
Company. Platte River Insurance Company may be contacted via U.S. mail at P.O. Box 5900,
Madison, WI 53705; via fax at 608-829-7451; or via email at [email protected]. In
addition, Platte River Insurance Company has established a toll-free phone number to provide
information regarding procedures for filing claims, 1-800-475-4450 ext. 4284. Claims made
under the surety bond must be made within 60 days of the date of the originally-scheduled return
air transportation. Claims are limited to the amount paid by the consumer for the charter air
transportation or air charter tour package.

Credit and Debit Card Refunds

Customers who paid Direct Air by credit card may be entitled to a credit from their credit card
company under the Fair Credit Billing Act. Write to your credit card issuer, being sure to state
your account number. Enclose a photocopy of your credit card statement, if you have received
one, and a photocopy of your ticket, itinerary or receipt if possible, or indicate the price of the
transportation and the date it was purchased. State that Direct Air has ceased operations, that
you will not receive the product that you charged to your account (i.e., the comprehensive tour),
and that you are requesting a credit pursuant to the Fair Credit Billing Act.

The credit card issuer must receive this notice no later than 60 days after the date that you
received the first monthly statement that listed the Direct Air charge, although credit card
companies sometimes waive this deadline for future transportation. If you have a paper ticket or
other evidence of your transportation, some credit card issuers may ask for the original unused
ticket or other documentation. If this is requested, keep a photocopy and send the original by
certified mail. Do not send the original documentation unless it is requested. However, it would
be a good idea to enclose a copy of any confirmation or itinerary sheet that you may have
received.

There are no federal protections for debit card purchases of the type described above for credit
cards. However, some debit card issuers voluntarily provide some or all of those protections. If
you paid by debit card, consult your debit card issuer regarding your refund right