Chargeback been refused due to government regulation

shelllp

Hello. Macdonald Hotels are refusing to refund my hotel trip although their resort is closed. I have tried to claim a chargeback from my bank but they are refusing my claim as they say the merchant will not participate as it’s cancelled due to a government regulation. Can anybody advise if this is a valid reason for the chargeback to fail? Thanks in advance for any help. 

Browntoa

Was it a room with free cancellation or non refundable. 

You can try and claim on your travel insurance you took out to cover the trip

Nebulous2

How did you pay? If it was a credit card you might be able to try a section 75 claim. Make sure you get a response in writing from your bank / card provider, then you can work through their complaints system and ultimately to the ombudsman.  

Were you you offered a voucher by the hotel? That seems to be a reason for chargebacks and section 75s to fail, as you are deemed to have been refunded. 

It might be worth holding on a bit however. The situation is very confused, with banks, insurers, travel agents and direct accommodation providers all trying to divert people to somewhere else. Eventually the fog will clear and a path through will be found. 

shelllp

Thanks for taking the time to reply it is much appreciated! In fact I’ve since found out that Visa have changed their rules so that no chargebacks will be payable in relation to Coronavirus where the government ordered a particular action (like closing hotels etc). Visa are saying these orders supersede their own chargeback terms and conditions. Therefore if anybody is trying to obtain a chargeback in relation to Coronavirus it is likely to fail! 

soolin

As at 7 days ago VISA were still suggesting a claim might be possible depending on your issuing bank. My own insurance requires me to try a chargeback before trying to claim on the insurance.

https://www.visa.co.uk/pay-with-visa/coronavirus.html

Monkeeboy

shelllp said:

Thanks for taking the time to reply it is much appreciated! In fact I’ve since found out that Visa have changed their rules so that no chargebacks will be payable in relation to Coronavirus where the government ordered a particular action (like closing hotels etc). Visa are saying these orders supersede their own chargeback terms and conditions. Therefore if anybody is trying to obtain a chargeback in relation to Coronavirus it is likely to fail! 

Could you please provide a link to where you have found the change in the visa rules? Ive had a quick look on https://www.visa.co.uk/dam/VCOM/download/about-visa/visa-rules-public.pdf and these don’t seem to have changed since October 2019. 

thanks in anticipation

soolin

Also, if VISA have changed their rules and backdated it so that previous payments made under the old rules aren’t covered this needs to be announced properly in Martin’s daily emails. 

If this has actually happened then we urgently need a link so that the advice pages and links on here can be updated. 

SevenOfNine

shelllp said:

Hello. Macdonald Hotels are refusing to refund my hotel trip although their resort is closed. I have tried to claim a chargeback from my bank but they are refusing my claim as they say the merchant will not participate as it’s cancelled due to a government regulation. Can anybody advise if this is a valid reason for the chargeback to fail? Thanks in advance for any help. 

Request clarification on the comment "government regulation".  The temporary amendment to the regulations to allow 'lock down' are here https://www.legislation.gov.uk/uksi/2020/350/made  Though it does say this type of property must close (with a few 'unless' exemptions for those who would need the facility to remain open, albeit temporarily). 

You did not cancel your booking (non-refundable or otherwise), IMO it's not reasonable for the hotel to pass it's loss on to you because the Government ordered it to close.  At the very least I would expect you to be offered a date amendment, even Premier Inn proactively gave us a full refund (on a saver booking which are NOT refundable).  Travelodge gave us voucher to use at a later date (again, on a saver booking which are NOT refundable) - we had 2 bookings with them & have already rescheduled both.

If Macdonald Hotels aren't at least offering rescheduling - then shame on them, their customer service sucks.

LilElvis

SevenOfNine said:

shelllp said:

Hello. Macdonald Hotels are refusing to refund my hotel trip although their resort is closed. I have tried to claim a chargeback from my bank but they are refusing my claim as they say the merchant will not participate as it’s cancelled due to a government regulation. Can anybody advise if this is a valid reason for the chargeback to fail? Thanks in advance for any help. 

Request clarification on the comment "government regulation".  The temporary amendment to the regulations to allow 'lock down' are here https://www.legislation.gov.uk/uksi/2020/350/made  Though it does say this type of property must close (with a few 'unless' exemptions for those who would need the facility to remain open, albeit temporarily). 

You did not cancel your booking (non-refundable or otherwise), IMO it's not reasonable for the hotel to pass it's loss on to you because the Government ordered it to close.  At the very least I would expect you to be offered a date amendment, even Premier Inn proactively gave us a full refund (on a saver booking which are NOT refundable).  Travelodge gave us voucher to use at a later date (again, on a saver booking which are NOT refundable) - we had 2 bookings with them & have already rescheduled both.

If Macdonald Hotels aren't at least offering rescheduling - then shame on them, their customer service sucks.

I should be sat next to a swimming pool at one of their Spanish resorts right now! No phone lines open and when I requested a refund I was sent a generic email offering me the ability to reschedule at no additional cost or a voucher valid for 12 months worth 120% of our booking. Neither option is any good to me as we are tied to school holidays, already have a (now doubtful) 3 week holiday planned for August and weren't planning on holidaying next Easter as daughter then has exams. Prodding them again a week ago just got a response that it had been passed to management. Since then absolutely nothing. Very disappointed as this would have been our 5th trip there so we have spent thousands with them. 

balazsbela

I googled "visa chargeback covid-19 change in rules" and a pdf comes up (I can't link yet).

"Question 2: The cardholder purchased goods/services and the merchant cancels the good or service due to a government prohibition. For example, an airline cancels a flight because the government closed the border or a gym closes operations because of a government mandate to cease operations. Does an issuer have disputes rights?

Answer: No, if the merchant has not provided the service due to a government-imposed prohibition, the cardholder does not have a dispute right. Government regulation and/or law supersedes Visa rules on dispute rights. The cardholder should work directly with the merchant to resolve."

Penelopa.Pitstop

That's c*ap. I was hoping to use chargback to get back money for cancelled flight since OTA is not rushing to refund it.

If insurance is not going to cover your cost, you can always start small claim online.