Section 75 protection if you accept a Flight Refund Credit Note (RCN) or voucher or reschedule

Dunas

Hi All, I was wondering what the situation would be if I accepted either a RCN or other form of voucher from an Airline (in this case Virgin Atlantic) for around £12k worth of flights for a family trip to Florida booked for July and subsequently the airline went bust. My understanding is that Section 75 would normally cover me for the flight tickets (not a package holiday or covered by my insurance) if the Airline went into administration but does this change either in the situation where I have 'swapped' my original booking for a RCN, rescheduled to a different date or have accepted a voucher to be used by a certain date?

Browntoa

I don't think anybody is quite sure but I'd argue that it's still the original booking regardless of the voucher being offered.

Seeing that the credit card companies are refusing section 75 claims if you have a voucher currently I don't think they can argue that it's the same booking.

ABTA backed RCN have full financial backing regardless of administration of the companies .

As news stories have just popped up from Branson saying "my airlines will go bust without government help" I'd hold fire until the time

Life__Goes__On

Flight only  and package holidays have different rules,  Take a Refund Credit Note (RCN) from a package company it's protected and if not used can be turned into cash.
Flight is a different matter  there is no protection, and if you didn't use it you lose it.
 Section 75 might note cover you with a voucher (seems to be a legal grey area) but it might be a battle

Personally I see no up side on taking a voucher
 

Browntoa

https://www.cityam.com/coronavirus-travel-industry-in-line-for-4bn-support-package/

soolin

What about the situation where you get a voucher instead of the promised cash refund, is this likely to help or hinder a section 75 claim?

Life__Goes__On

I have read travel agents are being advised to send out vouchers, and if they receive a Section 75 to contest this as it's been paid. They are on very shaky ground doing this but it might delay any cash refund.

 My advice if a voucher is received then e-mail the company rejecting the voucher, then attached that e-mail to the Section 75 claim. So when they argue that you have received the refund via a voucher the credit card company have proof that you rejected it.

soolin

Life__Goes__On said:

I have read travel agents are being advised to send out vouchers, and if they receive a Section 75 to contest this as it's been paid. They are on very shaky ground doing this but it might delay any cash refund.

 My advice if a voucher is received then e-mail the company rejecting the voucher, then attached that e-mail to the Section 75 claim. So when they argue that you have received the refund via a voucher the credit card company have proof that you rejected it.

My voucher though has come direct from Ryanair after they promised me a cash refund, there doesn't appear to be any way to actually reject it- the link on the voucher email goes to online help and is not being answered in any timely fashion.

Life__Goes__On

Hi soolin
https://www.ryanair.com/gb/en/useful-info/contact-us
ryanairen@ryanair.com.

It's time we all stood up against the Federation

Dunas

So it's sounds like no one is quite sure if Section 75 still applies if you rebook or take a voucher/RCN and the airline goes bust, does anybody know if there is normally a cut off to accepting the voucher/rebook option when offered or can you wait until nearer the time to see if the flight gets cancelled and then make a decision?

BeltonRose

My understanding is that you can legitimately make a Section 75 claim at the same time as claiming to your merchant/retailer, but of course you cannot accept payment from both. Section 75 is not a 'fall back' position only to be applied if your merchant/retailer doesn't pay up. Your credit card provider is jointly liable when things go wrong, provided the 'issue' cost between £100 and £30,000 and even if only say £5 of that was paid on the credit card. 

Dunas

Thank BeltonRose, I was working on the assumption that I'd only be needing section 75 if the airline went bust but does the issue of accepting a RCN/Voucher or the fact that you've rebooked to a later date mean that the merchant (airline) has in effect paid up and so the Credit Card provider is no longer jointly liable?