Chargeback been refused due to government regulation

Alan_Bowen

Both Visa and Mastercard issued amended notes on chargebacks at the end of March specifically in relation to Covid 19. Both say you must try and resolve the issue with the supplier and if you accept a credit note/voucher you forgo the right to any chargeback claims. However, if you don't accept the "reasonable alternatives" offered and the government do not change the rules to require to accept a voucher, and they haven't, then a chargeback should still be possible. It seems MasterCard is more likely to do so than Visa but that may depend on their interpretation of the wording 

Monkeeboy

balazsbela said:

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."

Thanks for that. I did the same search and came across this link https://usa.visa.com/dam/VCOM/global/support-legal/documents/managing-disputes-through-covid-19.pdf

At question 2 it refers to an issuer (I’m guessing a card issuer i.e. a bank etc) the answer then refers to a cardholder - all rather confusing and perhaps yet another attempt at moving the goal posts! 

GraceCourt

Monkeeboy said:

<snip>
At question 2 it refers to an issuer (I’m guessing a card issuer i.e. a bank etc) the answer then refers to a cardholder - all rather confusing and perhaps yet another attempt at moving the goal posts! 

I requested a chargeback for £318 of flights for my wife and myself back to the UK with TUI Airlines Limited (flights only, so ATOL rights don't apply) but First Direct have been stalling since Tuesday 31 March, the day after the flight was supposed to leave the relevant (European) airport back to the UK.  These flights were booked back in January.

I had advised First Direct that TUI's booking terms and conditions provided for full repayment if they had to cancel the flight, but that TUI are completely uncontactable, having shut all incoming e-mail accounts (all mails are returned as undeliverable) and the contact form on their Web site has been de-activated. They haven't contacted us at all either by e-mail or phone, not even to tell us that the plane wouldn't fly - they weren't to know that we couldn't travel out there and thus that we weren't actually stranded.  Although I think the airline is still trading, obviously that might not be for long!  So, given the bank's dithering and the suggestion that the airline might well go bust, I have today issued Part 27 County Court proceedings against them both, the bank having joint liability for the debt under Section 75 Consumer Credit Act 1974.

I guess that almost all such debtors are going to claim "force majeure" (Act of God) to try to wriggle out of their debts but as someone said above, why should customers carry the losses when the aircraft didn't even fly? Each will have to file their defence by 4 May (or 18 May if they file an Acknowledgement of Claim before 4 May) so I will keep this thread updated.  The Court issue fee for the claim was £35 so a payment of £353 by one or the other, or between them, will settle the claim.

We do have cancellation insurance but there is an excess on that.

balazsbela

GraceCourt said:

 I have today issued Part 27 County Court proceedings against them both, the bank having joint liability for the debt under Section 75 Consumer Credit Act 1974.

I'll be interested to know how this goes - i'm considering this option at the moment!

Pok3mon

I keep eyes on the shares −24.70p today something is going on.

Browntoa

You do realise that it's most unlikely to reach courts at the moment , only hearing important cases .

I suspect all TUI and travel claims will be " stayed " by the courts for the foreseeable future

GraceCourt

Browntoa said:

You do realise that it's most unlikely to reach courts at the moment , only hearing important cases .

Yes, but it's tactical... it's "belt and braces" in case they do go bust, because with HSBC UK Bank PLC as joint defendant, the case can progress as a Section 75 CCA 1974 claim thereafter.

And I came on to post an update: the first contact whatsoever that I've had from TUI arrived today - an e-mail from their in-house legal department, a very pleasant and sensible request for our bank account details, so that they can refund me the cost of issuing the summons, and gaving a confirmation that the full flight costs will be refunded to the payment card account in the next few days.

They only had one week left to file a Defence, so I was expecting something this week anyway.