Section 75 refund refusal for cancelled flights

suesh

Has anyone had a refund refusal because the credit card company excludes all taxes when it looks at the value of the ticket purchased? In February 2020 I bought 2 internal flights on South African Airways for a total cost of £481. SAA have offered a credit voucher which I can't use so I claimed from AmEx under section 75. (Perhaps I shought have used chargeback but it's too late now). On the invoice only £80 for each ticket is listed as paid to the airline with £161 paid for various taxes. AmEx have said they will only take that £80 into consideration so my claim is invalid. Is it worth following through with the financial ombudsman? I had travel insurance so can probably claim on that but will lose £100 in excess charges.

jon81uk

If you didn't travel then you claim the taxes back from the airline (as they wouldn't have paid them to the government if you didn't travel).

Caz3121

did the airline cancel the flights or did the flights operate but you could not use them?
If the airline cancelled the flight then 11.2 of their conditions of carriage applies

11.2. INVOLUNTARY REFUNDS
11.2.1. If we cancel a flight, fail to operate a flight reasonably according to schedule, fail to

stop at your destination or Stopover, or cause you to miss a connecting flight on which you hold a reservation, the amount of the refund shall be:

11.2.1.1. if no portion of the Ticket has been used, an amount equal to the fare paid;

If the flight operated then the fare rules of the ticket apply or any waiver that is in place at the time. Many airlines have allowed credit/vouchers on usually non-refundable tickets.

It is common for insurance to also not refund taxes that would be due back from the airline and some insurers are treating a credit/voucher as a refund

Westin

I have come across that for the UK's Air Passenger Duty but not on other general taxes and airport fees.

I think this might be worth challenging with AmEx. Presumably you have an AmEx credit card as you mention S75? Aside from the fact that you actually don't know what taxes you could claim back (as not are all recoverable) - SAA is in such a poor financial position that I doubt you would be able to recover any amounts, even taxes if due, back from them.

If you look at your e-ticket you will likely see the fare breakdown. Then google to see if any are actually refundable. When responding to AmEx I would be inclined to list these taxes and indicate you have no way of recovering these, particularly given SAA poor financial stability at the moment and ask they reconsider.  Reaffirm their S75 responsibilities.  No harm in also suggesting you are prepared to escalate the matter to the Financial Ombudsman.   As this would cost them money they may roll over and concede.  

suesh

Thanks for your comments. I used a BA AmEx card. I did send a brief email back to AmEx suggesting they reconsider and I will go to the ombudsman. I am awaiting a reply but I had to wait months for their decision so am not holding my breath. It sounds from your comments like it should be worth challenging more strongly. I know that SAA are in a difficult financial position. I didn't accept a voucher but it was all they offered. As an aside, BA gave me a full refund for our flights to South Africa as well as refunding the cost of Avios I had purchased so very impressed with them. 

Thrugelmir

Were the internal flights actually cancelled?  

sheramber

Are Amex saying the cost of the ticket was only £80 therefore under the £100 limit for S75?

suesh

Thanks again for your comments. Yes the flights were cancelled. Basically yes, Amex are saying the cost of the ticket was £80. Here is exactly what they said:

• In order for a claim under Section 75 to be considered, the individual purchase price of goods has to exceed £100.00 and be no more than £30,000.00. Having reviewed a copy of the electronic ticket receipts that you have kindly provided, we note that the individual fare of each ticket is less than £100.01.

 

• The fare of each individual ticket was £80.00, plus taxes and fees, which are not a cash price attached by the airline; they are imposed and set by the government, which the airline collects on the government’s behalf. Therefore, regrettably, your claim falls outside the scope of Section 75.

Upsidedownandaround

I suppose all you can do is take them to the Ombudsman. "cash price" is the words used in the legislation and that would usually exclude taxes but it does create an absurd situation when the tax and fees are about 80% of the purchase made.

DW190

I would be going to the ombudsman.  Had you spent £101.00 in Harrods you could have claimed even though 20% vat is included in the price of most non food items.

Caz3121

suesh said:

Yes the flights were cancelled. 

SAA should be refunding then as per their conditions of carriage above.  What reason have they given for not abiding by these?