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ARTA Canada Says ACTA "Doesn't Get It" About New IATA Debit Process
Toronto, 10 September 2009: Once again, ACTA chimes in on the coattails of ARTA Canada's vigilance over industry procedures which ACTA seems neither to understand nor to provide adequate advice to Canadian travel agencies. ARTA Canada raised concerns about the removal of the 30-day latency period for BSP Canada's new "SPDRs" (Settlement Plan Debit Records) because these IATA adjustments might be flawed and agents would have no dispute mechanism to resolve them before they hit the agents' bank account.
There has been a long history of improper debits to agency bank accounts due to incorrect ADM claims by carriers, often resulting in thousands of dollars being inappropriately debited from agents' bank accounts. Now that a system has finally been put in place with proper controls under IATA Resolution 850m, a new debit system (SPDR) is being introduced which seeks to provide an adjustment mechanism, in part, for existing ADMs already under review and where the SPDR has no controls in place for its own errors.
ACTA completely misses the point that SPDRs can be used to make adjustments for various transactions, including previously raised ADMs. Thus, if an airline were to inform IATA to make an adjustment to an agent's bank account for an ADM which had been previously contested, and where the agent would not be in agreement with the carrier's determination, IATA could use the SPDR to debit the agent's bank account in the next billing without giving the agency the right to dispute same.
ARTA Canada has no objection for SPDRs issued to collect legitimate IATA charges authorized to be transacted via BSPlink. What ARTA Canada does object to is the potential use of the SPDR to adjust a previously reviewed and contested ADM where the agent would be debited without due and proper recourse.
ACTA's press statement does not provide any information not already known and categorically fails to address the underlying concern that the SPDR may be incorrect or not agreed to by the agent.
ARTA Canada has progressed its concerns to UFTAA (United Federation of Travel Agents’ Associations), which not only agrees with ARTA Canada's position, but will also place the matter on the agenda for the upcoming Passenger Agency Programme Joint Consultative Council meeting in Geneva.
About ARTA Canada
ARTA Canada is the largest non-profit federally incorporated professional association of travel retailers in Canada, the members of which consist exclusively of travel agencies and travel agents. In addition to advocating fair and equitable treatment of travel consumers, ARTA Canada represents the commercial and strategic interests of its member travel agencies and travel agents in a variety of national and provincial domains including regulatory and legislative matters, automation, technology, sales and marketing, and distribution.
ARTA Canada is the strategic partner in Canada of the U.S.-based Association of Retail Travel Agents (ARTA). ARTA Canada is the Canadian member of UFTAA, the United Federation of Travel Agents' Associations. To join ARTA Canada, complete details and online membership application and secure payment are available on the ARTA Canada web site at www.artacanada.ca/join. |