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

BeltonRose

May I suggest you search for the Which? advice on Section 75 claims. It will answer your questions. Your rights under Section 75 are particularly useful if the Merchant/retailer has gone bust or doesn't respond to your letters or phone calls. 

Dunas

Thanks BR, I have looked at Which and at just about everywhere else I can think of, the value of section 75 seems clear based on the original contract but the bit I can't get to the bottom off is, when (as lots of people are being encouraged to do at the moment), the consumer accepts a delay in the providing of the goods (flights) by accepting the chance to rebook or being given a voucher to use to rebook at a later date and then before being able to use that booking/voucher the airline goes bust and is unable to provide the flight or repay, in those circumstances is the Credit Card provider still part of the contract or is this a new contract just between the consumer and the airline and of course without any section 75 protection?

Life__Goes__On

Dunas said:

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?

I'm not certain but if you accept the vouchers then that becomes your new product as you have agreed to the swap into vouchers.
Vouchers are a legal gray area, the Law Society believes vouchers should fall under section 75. But could be a battle to get it.
What I say is there is no upside to taking a voucher unless there in an intensive to do so..

Browntoa

I've asked that question elsewhere .

Waiting for a reply

Aa1242

Life__Goes__On said:

Dunas said:

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?

I'm not certain but if you accept the vouchers then that becomes your new product as you have agreed to the swap into vouchers.
Vouchers are a legal gray area, the Law Society believes vouchers should fall under section 75. But could be a battle to get it.
What I say is there is no upside to taking a voucher unless there in an intensive to do so..

I think the problem is that in a lot of situations, consumers don't have a choice in accepting the voucher. They're getting emailed a voucher whether they want it or not.

In some cases, the companies issuing the vouchers are stating you must ring up to claim your refund. I wonder if section 75 would apply should a company go bust between issuing a voucher and you either ringing to decline the voucher and ask for a refund, or between the time you decline the voucher and the refund is issued?

Dunas

I see Martin Lewis has suggested that this is a grey area and the Financial Ombudsman has suggested that a claim could be made although no guarantees, I've asked Barclaycard to clarify their understanding but I'm still awaiting a reply. If anyone has a definitive answer it would be appreciated.

Life__Goes__On

I don't see it a grey area at all.
Most companies would love you give you a voucher instead of cash refund  if an item was out of stock that you had already paid for.
You are entitled to a refund back to the method of payment,   So if you paid with a voucher they can give you a voucher, if you paid via a gift card that's what you get back  but it you paid with a credit card that's where the refund goes.

Life__Goes__On

Thought I give another example.
Say you only wanted a Sharp TV 60 inch TV model "A"  Amazon had it for £600 and Currys for £620.
So you decided on buying form Amazon, so ordered it.
Then Amazon tell you it's out of stock. So are refunding you, but only give you £600 voucher
This would be unfair as it stops you going to Currys and buying the TV (paying £20)]
It is also unfair as the TV might come into stock again and now cost £1000,  so you then have to pat an extra £400 for the TV

Dunas

The grey area is that if you Rebook to a later date or accept a Voucher/Credit note for a future flight you may not still be covered by Section 75 if the company (airline) goes bust, whereas you would have under your initial booking. This is particularly relevant for those people who are accepting the current offers to reschedule or accept an open ended voucher for flights which are not yet been cancelled.

Life__Goes__On

Dunas said:

The grey area is that if you Rebook to a later date or accept a Voucher/Credit note for a future flight you may not still be covered by Section 75 if the company (airline) goes bust, whereas you would have under your initial booking. This is particularly relevant for those people who are accepting the current offers to reschedule or accept an open ended voucher for flights which are not yet been cancelled.

Totally agree, it's not a risk I would make