last minute.com not refunding ALL of our flight money due to covid cancellation

taccpc

We booked flights for 3 passengers to Italy leaving 20/5/21 to Pisa at 8.20am through last minute.com flying with British Airways, returning 27/5/21 at 19.55 to heathrow. These have been cancelled by BA and therefore we expected a full refund. We paid £572.27 including 33.03 for full flex insurance. The breakdown was flights 274.54,luggage 279.51 full flex 33.03 and discount -14.81.in pounds sterling.  However, last minute are only offering us 440.47 sterling as a refund, or offering vouchers for 567.14 which have to be used within 12 months. this isnt possible for us to do so require full refund. When we contacted them they said they could only pay us the 440.47 as this was all they received back from BA. We then rang BA who informed us that they have refunded everything at 100% so the missing £132 must be their profit on the flights. Last minute ,com are adamant that they will ONLY pay back the £440.47 as they say this is the amount that BA have paid them. I have copies of the invoice and refund offers that i can forward to you if required. We do not want to lose this amount of money which we paid over in good faith that the contract would be honoured should the flights get cancelled due to covid.  To make matters even more confusing we have an invoice stating the 572 payment, with full flex cover, but when we speak to last minute they say its for 567.00 and no full flex cover! So they cant even match up to what we paid and they invoiced us for! Can you help us with our situation please?

Westin

The insurance would typically not be refunded - while you have not travelled you have still had some benefit from the insurance cover it provides between booking and cancellation.  The insurance product is not a BA one.
Lastminute.com may also be deducting a service/administration fee for the work they have done.  This likely laid out in the booking terms & conditions.  I would have a look at these.
I would say the refund offer is less the insurance and Lastminute.com fees.

NoodleDoodleMan

As you have discovered, LastMinute.com have earned theselves an unenviable reputation in recent times for attempting to bodyswerve giving refunds.

https://www.theguardian.com/business/2021/feb/12/lastminutecom-faces-legal-action-unless-it-repays-1m-holiday-refunds-covid

Would be worth contacting the CMA for advice.

https://www.gov.uk/government/news/lastminute-com-faces-legal-action-unless-it-pays-outstanding-refunds

bagand96

Westin said:

The insurance would typically not be refunded - while you have not travelled you have still had some benefit from the insurance cover it provides between booking and cancellation.  The insurance product is not a BA one.
Lastminute.com may also be deducting a service/administration fee for the work they have done.  This likely laid out in the booking terms & conditions.  I would have a look at these.
I would say the refund offer is less the insurance and Lastminute.com fees.

I agree and think @Westin has the answer.

From the LM T&C's (which are very hard to locate, I had to follow a dummy booking to checkout to find them!) :

6.4. Booking modification or cancellation by the airline or flight provider

In case the airline or flight provider cancels or modifies the flight you have booked, you may have the right to a refund of the price of your plane ticket and/or some other type of economic compensation.

We remind you that, in accordance with clause 4.4 of the Terms & Conditions, the Company can apply the handling fees unless otherwise decided by the parties.

The Company's handling fees applied may vary, according to the method in which this reimbursement is made:

• Using the original payment method to make the booking:
• If you have purchased an Assistance Package: no handling fee applies.
• If you do not have an Assistance Package: 35 GBP per person applies.
• Receive a voucher: no handling fee applies.

If you have not purchased an Assistance Package and the value of the refund is less than 35 GBP, only a refund voucher option will be applied.

You say you have 3 passengers, if they are indeed charging their £35 per passenger admin fee, then you're looking at £105 in admin fees.  The fact they are offering a voucher for the full amount definitely points to the fact it's a LM admin fee being deducted.

The numbers still don't quite add up though.... the shortfall is £131.80.  Minus the above £105 admin fees leaves £26.80.  I think @Westin is again correct saying the insurance is likely not refundable, so maybe a pro-rata refund of that?  It also doesn't explain why they are being economical with the truth in saying "that's all BA have refunded us".  

I would be asking them for a written breakdown of the £440.47 cash refund offer explaining the deductions.  However, if those admin fees were in the T&C's at the time you booked, then they are within their rights to charge them.