Emirates and now Lloyds messing me about

marshall_cockney_fox

I booked flights using my Lloyds credit card last summer. The Emirates flights have been cancelled for this weekends departure. We were going to Australia for my sister's wedding. The airline has cancelled the flight and is refusing to issue full refund. I approached Lloyds to lodge a s.75 or charge back claim for services not delivered. They flatly refused to allow me to lodge the claim stating the claim would be rejected as airline is offering vouchers. They were effectively stonewalling me, not even allowing me to get off the starting block. Can they do that? Seems entirely wrong and not in accordance with the consumer protection s.75 is meant to give. I don't consider vouchers a like for like remedy in this unpredictable climate. Emirates are not budging and it now appears other associated parties i.e. Lloyds are effectively colluding to offer no protection. What can I do?

Westin

Interesting development. 

I suspected that credit card companies would start to reject S75 claims based on airlines offering credit vouchers.  A can of worms just opened.

Browntoa

It's a grey area 

Section 75 fails as the company are not failing to refund , it's just not the cash refund you wanted. 

Nebulous2

This is going to be an almighty mess and will take months if not years to resolve. My travel insurer told me before they even look at a claim they will want evidence in writing that I have tried to reclaim from both the travel agent and my credit card. 

I read a report yesterday saying that Barclays are withholding card payments for a travel agent and demanding that they provide £10 million in security. 

Socajam

Nebulous2 said:

This is going to be an almighty mess and will take months if not years to resolve. My travel insurer told me before they even look at a claim they will want evidence in writing that I have tried to reclaim from both the travel agent and my credit card. 

I read a report yesterday saying that Barclays are withholding card payments for a travel agent and demanding that they provide £10 million in security. 

If this is true, it's going to be the new normal.

Nebulous2

Socajam said:

Nebulous2 said:

This is going to be an almighty mess and will take months if not years to resolve. My travel insurer told me before they even look at a claim they will want evidence in writing that I have tried to reclaim from both the travel agent and my credit card. 

I read a report yesterday saying that Barclays are withholding card payments for a travel agent and demanding that they provide £10 million in security. 

If this is true, it's going to be the new normal.

Link https://news.google.com/articles/CAIiEP4rTr3LmLgyvFOWftjeXjkqGQgEKhAIACoHCAow4uGPCzDQpKMDMMadsAY?hl=en-GB&gl=GB&ceid=GB%3Aen

Ziggyplus

EU and UK law has not been changed. For flights originating in EU and UK the entitlement is to a full cash refund.  The airlines, travel agents, ABTA and credit card companies cannot and should not anticipate a change in the law. Get Which on the case and consider submitting a claim in the Small Claims Court. The Government should get its act together. Any change in the law now is probably going to have to be retrospective to catch existing claims, and that will be difficult.

benjus

Did you do this over the phone? If so I think it's time to start getting something in writing - either via a secure messaging service if they have one, or a good old fashioned letter. Make it clear that you are claiming under S75 and therefore Lloyd's has a legal obligation to honour your claim - and that you will take it to the Financial Ombudsman if they fail to do so. It might also be worth pointing out that the EC261 regulation which obliges airlines to refund passengers whose flights are cancelled, stipulates it should be "paid in cash, by electronic bank transfer, bank orders or bank cheques or, with the signed agreement of the passenger, in travel vouchers and/or other services" (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32004R0261)

Obviously in the current circumstances you are unlikely to get a fast result, but it's the correct path under the law as it stands. If they start changing the law, who knows?

Next time, consider getting an Amex credit card to pay for potentially risky purchases - Amex seems to have the best customer service in the business and anecdotal evidence suggests that they are refunding customers quickly and without fuss.

bagand96

Ziggyplus said:

Get Which on the case and consider submitting a claim in the Small Claims Court. The Government should get its act together.

The government kind of has its hands full right now!  Whilst this issue is important to the millions affected, it won’t be anywhere near the top of government priorities. And even if it was, just like the rest of us, government departments are social distancing, self isolating, working from home etc. Same as the banks, and the court system. Nobody will get a speedy resolution here. @Nebulous2 was absolutely correct saying it will take months if not years to resolve. 

Nebulous2 said:

I read a report yesterday saying that Barclays are withholding card payments for a travel agent and demanding that they provide £10 million in security. 

That is a very interesting development. The banks have taken similar action in the past with airlines/tour operators... Globespan, XL, Monarch, Thomas Cook... was the final nail in the coffin for some of them. 

Like @Westin I fully expected the banks to push back on Section 75.  They don’t want to be on the hook for the hundreds of millions anymore than the travel companies.