Refund Credit Note (RNC) Still NOT Government Backed (14th May)

Life__Goes__On

Feel it's important to make people aware that the Government hasn't backed RCN, so taking one might put your money at risk

This could change at any time,  but the Government has had a couple of months now to back it.

https://www.abta.com/news/european-commission-issues-recommendation-use-refund-credit-notes-cancelled-package-holidays

Mark Tanzer, ABTA’s Chief Executive, says, “That the European Commission has endorsed the correct use of financially protected Refund Credit Notes should help to give additional confidence to UK holidaymakers that they can be trusted to provide the same protection as the original holiday booking. We now need the UK Government and the CAA to come out and confirm their status, which the industry has long been waiting for.”

paddyandstumpy

Thanks for this. Interestingly we've had an email from our travel agent today about our honeymoon booking, offering a rebook in '21 for the same dates, just paying a yet undetermined additional amount for the flights, or a RCN. She says: 

If you need time to think about a new date, they will issue a Refund Credit Note – these are backed by the government and guaranteed by ABTA, so your money is safe. The Refund Credit Note is valid until 31MAR 2021 (so you have 10 months to decide) At this time, if you decide not to rebook, we can apply for a refund.

She's under the impression RCNs are backed, it's a bit naughty of her if it's not the case!

Life__Goes__On

There is a lot of misinformation about them.
They wanted and expected the Government to back them,so ABTA took   it upon it's self to say they were backed and told it's member to use a CRN.  I believe this was to try to force the Government into having them accepted them. It seems that trick hasn't worked.

Butts

Life__Goes__On said:

There is a lot of misinformation about them.
They wanted and expected the Government to back them,so ABTA took   it upon it's self to say they were backed and told it's member to use a CRN.  I believe this was to try to force the Government into having them accepted them. It seems that trick hasn't worked.

And the EU has also mandated yesterday passengers are still entitled to a Cash Refund - the great voucher heist is a busted flush !!!

bobblebob

Butts said:

Life__Goes__On said:

There is a lot of misinformation about them.
They wanted and expected the Government to back them,so ABTA took   it upon it's self to say they were backed and told it's member to use a CRN.  I believe this was to try to force the Government into having them accepted them. It seems that trick hasn't worked.

And the EU has also mandated yesterday passengers are still entitled to a Cash Refund - the great voucher heist is a busted flush !!!

Problem is if the travel company refuse a cash refund, what can you do? Yes there are small claims courts but that could take years. The travel agent holds all the cards here.

SevenOfNine

There has been some success with Chargebacks. Section 75's are failing if RCNs are on offer (worse if they come with the 'promise' of ££££ refund some time that is convenient to the operators), card providers deciding to class that as a 'refund' so they don't have to cough up themselves.  They can be done with C/C payments as well (something I hadn't known), Martin Lewis threw in the Chargeback suggestion on his show a couple of weeks ago.  
https://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback/?_ga=2.225239577.228483873.1589638056-1531354924.1589638056#successes

Small claims court isn't taking years.  Travel operators avenues of support have been warned that there is an upturn in the 'letter before action' being sent by travellers (sample to use is on WHICH),  so they've been advised to make sure someone checks the office mail so they can send a response within the deadline - clearly has them worried.
https://www.which.co.uk/consumer-rights/letter/letter-before-small-claims-court-claim

https://www.gov.uk/make-court-claim-for-money  there was an on-line cost calculator somewhere (probably on WHICH, great info there), I stuck £2,000 in & cost was £105 or thereabouts.  The letter before action has had rapid refund results without having to take the next step.

bobblebob

If you win at a small claims court, do you get the fees you paid back?

Life__Goes__On

bobblebob said:

If you win at a small claims court, do you get the fees you paid back?

Yes

[Deleted User]

Life__Goes__On said:

Feel it's important to make people aware that the Government hasn't backed RCN, so taking one might put your money at risk

This could change at any time,  but the Government has had a couple of months now to back it.

https://www.abta.com/news/european-commission-issues-recommendation-use-refund-credit-notes-cancelled-package-holidays

Mark Tanzer, ABTA’s Chief Executive, says, “That the European Commission has endorsed the correct use of financially protected Refund Credit Notes should help to give additional confidence to UK holidaymakers that they can be trusted to provide the same protection as the original holiday booking. We now need the UK Government and the CAA to come out and confirm their status, which the industry has long been waiting for.”

Thanks LGO understood but am wondering if it only applies if the voucher or Refund credit note is left for use at a future date i.e. left hanging around.  If, during this period,anything happens meantime (e.g. companies crash) then the above will or may be worthless?  My understanding is IF they are used immediately to book a holiday in the future then that holiday is covered by the rules of ATOL?     Logic tells me it must be but stand to be corrected.   

Life__Goes__On

I believe (not sure)  that if you book new holiday then you are issued with a new  ATOL cert,  so you would be covered.

Life__Goes__On

RE; court action.
I believe a poster on here (can't find the post)  as already taken court action against TUI (I believe)
They gave TUI the 14 days the to refund them, after no refund  sent a  pre-action letter,  I believe no response.
So then files court papers,  within a couple of days TUI contacted them agreeing to pay and also any fees involved.