Irregularity (IATA)

A Notice of Irregularity is served on an agent that has not followed the reporting and remitting procedures. It is always in writing and sets out the specific circumstances behind it 2. The circumstances covered include an overdue or dishonoured remittance or cheque, failure to remit in the billing currency, and an accumulation of these irregularities 2. Agents may also be liable for charges arising from them 2.

What it leads to depends on how quickly the agent pays:

• The notice comes with a demand for payment. Where a demand is issued, the deadline is generally close of business on the first day the receiving office is open after the day of the demand 2.
• If payment is not received on demand, Default Action is taken against all Locations of the agent, not only the one concerned 37.
• In a default, airlines withdraw Traffic Documents and ticketing authorities, and demand immediate settlement of everything owed, even if the remittance date has not yet arrived 5.
• The agent can also be debited for the costs of the late or dishonoured payment 3.

In some cases a notice can be rescinded, or a default withdrawn. This applies where the non-payment was due to a bona fide bank error or extraneous factors and settlement is received 13. A registered dispute with written evidence can also prevent irregularity or default action 4. Where a default is withdrawn, the related notice is removed from the list 4.

In practice, treat any notice as urgent, pay the full amount on demand, and keep evidence of your remittance arrangements in case a bank error has to be shown. Sanctions can vary between BSPs, so check the local BSP Manual for Agents 2.