Credit Notes Versus Refunds

savingmoneyforu

Martin Lewis recently mentioned on Radio 5 Live that in the current circumstance and if you can afford, it was in the best interests of everyone to accept a credit note when offered instead of a refund. However, there was no mention of where the consumer stands if they accept a credit note and the company later goes bust. 

ultimatefighter

If the company goes bust then all vouchers and credit notes are then made redundant void.
It is the same princple as primark giving you a voucher instead of refund for clothes. You can only use it if the store is in operation. Sadly, customers are the last people to get money back for things but your bank can help you further when that happens. 

[Deleted User]

I read a recent article in the Independent suggesting travel companies and airlines were delaying cash refunds on the basis there may be a change in legislation where voucher/credit note will be the primary offer. These to be used within 2 years when it would be possible to obtain a cash refund. Basically  the current concern that a massive influx in refund requests, believed to possibly equate to £1bn across the sector, would lead to a huge number of businesses collapsing.

Westin

ultimatefighter said:

If the company goes bust then all vouchers and credit notes are then made redundant void.
It is the same princple as primark giving you a voucher instead of refund for clothes. You can only use it if the store is in operation. Sadly, customers are the last people to get money back for things but your bank can help you further when that happens. 

Not quite.  The reason for some of the turmoil and delay is that ABTA are trying to ensure their is consumer protection in place for those customers who booked ATOL protected package holidays to have the "credit" protected in the same way as cash.   At the moment it seems this will be the case up to 31 July 2020.