Package holiday cancelled, no refund option

Westin

desklamp said:

Some really good posts. 
Solely offering vouchers without a refund is against the legislation, and, for many during these hard times, unacceptable. 

I am mulling over the various courses of action, be it a Section 75 claim against the credit card company or action in the small claims court. The latter is a pain. However it is mentioned in mse, that package holidays are not covered under section 75, but it does not further elaborate. 
Can anyone else expand on whether a section 75 claim is possible against a package holiday company who cancels? 

Please could you link to where you are reading this.

happyandcontented

This what Nationwide Insurance says about claiming off a credit card:

If you used a Visa debit card or a credit card

A Visa Chargeback allows you to dispute a transaction if the service you paid for has not been provided.

However, if your airline or hotel is still able to provide the service that you have booked, you are not able to claim a refund, even if you have been advised not to travel. This is because the provider has not broken their agreement with you.

If your agreement allows you to cancel the services for a full refund, but you haven’t received it, you can make a claim with us and we will investigate.

desklamp

Under Holiday Rights section in MSE and under the sub section “Section 75 doesn’t always work with travel...”

point 3:

”Package holidays aren’t covered under Section 75 as you should be covered under ATOL. If you don’t have ATOL then check for ABTA protection - otherwise it’s down to travel insurance.”

Westin

I think you will find that refers to the ATOL scheme for package holidays when a company becomes insolvent. The consumer is then protected and can claim from the CAA’s ATOL fund providing they have an ATOL protected holiday.  A section 75 therefore would not be necessary as a refund comes from the ATOL fund.

desklamp

This this has probably already been reported, but the government is planning on retrospectively changing the Package Travel Regulation to remove the requirement for holiday companies to issue a refund within 14 days of cancellation.

What is important to note in the article (The Independent -Simon Calder) is that it is not yet in force, so holiday companies are still obliged to refund.

Depressingly it seems that holiday companies are still ignoring the regulations and it seems with ABTA’s tacit backing. One questions the worth of any consumer protection legislation or code of conduct when it can be breached en-mass with out sanction or forfeit.

The financial hardship or cash flow issues of the individual consumer is of no relevance.

Nevertheless I wonder if action against a holiday in the small claims court is still possible, as even without the protection of the package holiday regulations, the holiday company remains in breach of contract with its terms and conditions?

Westin

Guess you could try it. Something to do to fill a void.

I suspect ultimately the small claims court system will see this as being an unforeseen and extraordinary situation and will rule inline with the relaxation of the Package Travel Regulations, something the EU has already done and which the UK is very likely to do by the end of the day.

It's not idea but sometimes stuff happens and we all need to adapt and help each other out - including to airlines and travel businesses who might otherwise fail and lay off British workers if full cash refunds given now to many at this time.

desklamp

Many holiday companies are laying off workers already. For the company it is a business decision. For the worker it is loss of livelihood.

I feel that the issuing of vouchers may merely be a "stay of execution" for holiday companies which will ultimately fail regardless, whether consumers give up their rights or not.

Sadly there are many 1000s of people being severely disadvantaged in the present climate by the inability to get a refund of money that is due to them.

I will continue to look into ways of recovering this money and pass the information on so I too can help others. 

philldutton

Who is to say that any voucher issued today will cover the cost of a holiday in the future?

If your holiday costs an extra £1000 to take when travel returns to normal can you get a refund then? Or will you be forced to shell out extra cash?

SevenOfNine

Thanks desklamp, not very happy about this 'plan'.  https://www.independent.co.uk/travel/news-and-advice/package-holiday-refund-rules-suspended-abta-coronavirus-a9417261.html