The insurance contract, providing financial guarantees for the refund or repatriation of the consumer in the event of insolvency, of L.T., a travel agency, is terminated on 06/10/2001, because L.T. did not pay its insurance fees. The insurance company informs the economic inspection about the termination of the insurance contract.
On 8/11/2001, L.T. declares to the economic inspection that the travel agency will remain open, but only for handling already concluded contracts. L.T. claims he will not conclude any new contracts until he has subscribed a new insolvency insurance policy.
The Belgian government finds L.T. in violation of the TOA and starts an action for injunction against L.T.