FAIRFAX, Va. -- Travel agent arbiter William McGee dismissed a
complaint filed by a Florida firm that wanted the arbiter to
investigate how ARC was handling its letter of credit after it lost
accreditation in December.
The dispute began when the firm, All Star Travel of Lehigh
Acres, went into default for $4,097 last November but paid ARC the
same month and filed for a voluntary cancellation.
ARC then discovered $10,000 in unpaid debit memos and submitted
the claim to the bank holding the firm's letter of credit so that
ARC could draw down on it.
ARC is allowed to hold the remaining funds in the letter of
credit until July 18.
All Star's voluntary cancellation request and the complaint
filed with the arbiter were signed by a woman who purchased the
firm.
The woman said she was left "holding the bag" for debts incurred
by the old owners.
However, ARC said it never got an ownership change
application.
As a result, McGee said it was doubtful the new owner had
standing to bring a complaint before him. Because ARC was complying
with the contract in its handling of the firm's letter of credit,
McGee said he was "hard-pressed to understand the nature or
existence of any 'dispute.'"