Refund and credit card interest

Piscean1991

Hi all,
It's been a while since I've frequented the forums but I'm just looking for advice about interest charged on a credit card. 

In February, we booked a holiday with TUI for August. Upon adding it to the calendar, we realised it clashed with a family commitment so we cancelled the holiday on the same day it was booked. As such, we were entitled to a full refund which should have been paid within 14 days and we have the documentation to confirm this.

When the statement for the credit card came through, the money had not been refunded. When we contacted TUI 4 weeks ago who apologised and said the money would refunded within 5 working days.

The next credit card statement has arrived today. The money has not been refunded and we have been charged interest. We phoned TUI again and they are now saying that although the money will be refunded, they don't know when. All she would say was that it would be refunded in due course (whenever that is!) but that there's nothing they can do about the interest. 

Obviously, I appreciate that coronavirus has created exceptional circumstances and I know that TUI must be absolutely inundated. However, the longer this goes on with the refund being issued, the more interest is being racked up.

Will the interest be adjusted automatically or do we need to speak to the credit card provider? Or is it a case of just accepting it and paying the interest? 

Thanks in advance. 

Tildaplum

It is nothing to do with a credit card - if your contract with tui says they should refund within 14-days then it is their responsibility to do that

when you finally get the refund you need to claim your credit card interest from tui as they would be in breach of contract

if they don't pay and providing it is over I believe £100 (not sure) you can take them to the small claims court

born_again

Do you have proof that they are going to refund?
So a email/letter stating that they have refunded £xx on dd-mm-yy to card end 1234?
If you do and they have not refunded within 15 days then you can contact your card provider for a non receipt of refund chargeback.
If not. then you need to chase TUI and get them to put it in writing. As well as getting them to refund any interest due to their error.
Interest refund, has nothing to do with your card provider.

Piscean1991

I thought this would be the case. Our view is that as the interest has only occurred as a result of TUI's failure to refund us in the time agreed, it would be their responsibility or sadly ours. They have so far insisted that the interest incurred is nothing to do with them, isn't their fault and that we need to speak to our bank. Thank you both. 

Piscean1991

And yes, we have written proof of cancellation and refund.