Lastminute.com Admin Fee for Flight Refund

Robmacca1

Good evening everyone, sorry if this has been covered in some sort of context before. 

We’ve had a flight cancelled to Dalaman with Turkish Airlines that we booked through LastMinute.com, we have now received some comms from LM that we are due a refund (of a sort) the options are;

1) Travel credit extra value offer. £430 as travel credit. 

2) £410.22 as a Voucher

3) Cash refund of £305.22 (admin fee of £105 applied) 

I would obviously prefer the cash refund so we can actually do something as a family this summer, however £105 in admin fees when it is the airline that has cancelled the trip seems ridiculous. It’s like 25% of the outbound flight, we’re still waiting on the return with Jet2 to be cancelled so no doubt this will be a further admin fee  

Has anyone had any luck challenging this? I’m not against paying a reasonable fee if there’s extra work involved in processing a refund, but there wouldn’t have been a fee if we went as planned. What exactly do they think they’ve done to earn 25% of the refund? 

We have not accepted any of the refunds as of yet and any advice would be greatly appreciated.  

Thrugelmir

Read the contractual terms you accepted when making the booking. Such fees should be clearly stated. 

Fees are normally fixed amounts per ticket. Not a % of the refund due. 

As for the cost that's been charged. It's the commercial reality of employing staff , providing them with an office to work in and equipment to use. Along with a contribution to all the other overheads of the business.  Much in the same when you buy a coffee in Starbucks or Costa the cost of the product itself is a minimal part of the overall selling price. 

CKhalvashi

Lastminute must be paid to do the work you have instructed them to do as per your contract. £105 doesn't sound overly expensive if for example this is a family of 4, and probably is in line with the total costs of processing everything.

So, does your contract mention a £105 cancellation fee? If yes, this is what this fee is.

Caz3121

someone kindly posted the relevant t&cs on this thread ttps://forums.moneysavingexpert.com/discussion/6269160/last-minute-com-not-refunding-all-of-our-flight-money-due-to-covid-cancellation#latest
was your booking for 3 people?
The £35 per person is a fixed fee and not a % of the ticket so the cheaper the ticket the more it will appear to be but the same amount of work is required at their end to obtain and process your refund. Many third parties charge higher fees but the only way to really avoid third party fees is to book direct with the airline where you would get 100% of your money back.

Upsidedownandaround

Robmacca1 said:

Good evening everyone, sorry if this has been covered in some sort of context before. 

We’ve had a flight cancelled to Dalaman with Turkish Airlines that we booked through LastMinute.com, we have now received some comms from LM that we are due a refund (of a sort) the options are;

1) Travel credit extra value offer. £430 as travel credit. 

2) £410.22 as a Voucher

3) Cash refund of £305.22 (admin fee of £105 applied) 

I would obviously prefer the cash refund so we can actually do something as a family this summer, however £105 in admin fees when it is the airline that has cancelled the trip seems ridiculous. It’s like 25% of the outbound flight, we’re still waiting on the return with Jet2 to be cancelled so no doubt this will be a further admin fee  

Has anyone had any luck challenging this? I’m not against paying a reasonable fee if there’s extra work involved in processing a refund, but there wouldn’t have been a fee if we went as planned. What exactly do they think they’ve done to earn 25% of the refund? 

We have not accepted any of the refunds as of yet and any advice would be greatly appreciated.  

If you don't want to pay these fees in future the time to take issue with them and "challenge" them is when you're deciding where to buy your tickets from.

Buy direct from the airline and you may pay more but you won't have to pay these fees.

Buy from agents and you may save a bit on the ticket price but they will charge you for all work they do on your behalf as they are perfectly entitled to do if they have make this clear in the terms and conditions. 

You can't have it both ways unfortunately.

Butts

Or even better if you are eligible for a chargeback go down that route, probably not difficult to engineer with LM.com as they never refund within the proscribed timescales.
No Admin Fee to pay with this method.

Jumblebumble

Upsidedownandaround said:

Robmacca1 said:

Good evening everyone, sorry if this has been covered in some sort of context before. 

We’ve had a flight cancelled to Dalaman with Turkish Airlines that we booked through LastMinute.com, we have now received some comms from LM that we are due a refund (of a sort) the options are;

1) Travel credit extra value offer. £430 as travel credit. 

2) £410.22 as a Voucher

3) Cash refund of £305.22 (admin fee of £105 applied) 

I would obviously prefer the cash refund so we can actually do something as a family this summer, however £105 in admin fees when it is the airline that has cancelled the trip seems ridiculous. It’s like 25% of the outbound flight, we’re still waiting on the return with Jet2 to be cancelled so no doubt this will be a further admin fee  

Has anyone had any luck challenging this? I’m not against paying a reasonable fee if there’s extra work involved in processing a refund, but there wouldn’t have been a fee if we went as planned. What exactly do they think they’ve done to earn 25% of the refund? 

We have not accepted any of the refunds as of yet and any advice would be greatly appreciated.  

If you don't want to pay these fees in future the time to take issue with them and "challenge" them is when you're deciding where to buy your tickets from.

Buy direct from the airline and you may pay more but you won't have to pay these fees.

Buy from agents and you may save a bit on the ticket price but they will charge you for all work they do on your behalf as they are perfectly entitled to do if they have make this clear in the terms and conditions. 

You can't have it both ways unfortunately.

If I were the OP I would be tempted to  believe trading standards view on this matter
There is no value to the OP for any work an agent might have carried out if the flight is cancelled

https://www.tradingstandards.uk/news-policy/news-room/2020/pandemic-cancellations-beware-refund-vouchers-and-admin-fees
Some travel agents have also been deducting significant ‘admin’ fees from refunds, contrary to the law, and this practice should be reported and stopped, according to London Trading Standards. Under EU and UK law, companies must provide a refund in the event that no service is provided to the customer.
( The article makes it crystal clear that if their interpretation of no service is if the flight is cancelled)

Caz3121

ABTA though takes a different view
https://www.moneysavingexpert.com/news/2020/02/coronavirus-travel-help-and-your-rights/
"Travel agents' association ABTA says agents ARE allowed to do this, as long as this is included in their T&Cs – though if in doubt, check what you agreed to when you booked."
I am not sure if any of the third party ticket floggers will do the work to obtain the refund back from the airline and return it to the customer without charging any fees yet they have not been stopped from charging.

eskbanker

Jumblebumble said:

If I were the OP I would be tempted to  believe trading standards view on this matter
There is no value to the OP for any work an agent might have carried out if the flight is cancelled

https://www.tradingstandards.uk/news-policy/news-room/2020/pandemic-cancellations-beware-refund-vouchers-and-admin-fees
Some travel agents have also been deducting significant ‘admin’ fees from refunds, contrary to the law, and this practice should be reported and stopped, according to London Trading Standards. Under EU and UK law, companies must provide a refund in the event that no service is provided to the customer.
( The article makes it crystal clear that if their interpretation of no service is if the flight is cancelled)

That Trading Standards piece is badly constructed rather than crystal clear IMHO, and, when viewed in their full context, it's entirely possible that their remarks about deduction of admin fees relate specifically to package holidays, where the PTRs do protect full refunds.  Flights booked through intermediaries are less clear-cut, and hence the much more equivocal wording in their consumer guidance document, in which it seems evident that the Ts & Cs have a role to play (which they wouldn't if statutory rights took precedence):

6) I booked flights via an online travel agent and now they say I have to pay a cancellation refund ‘admin fee’ of £75 per person. Can they do that? 

Cancellation admin fees are likely to be inappropriate in the current situation, whilst excessive and unreasonable ones may constitute criminal offences. 

Should such fees be deducted from your refund then check your contract terms and conditions and request evidence from the trader that justifies the charges. 

Under the Consumer Rights Act 2015, traders cannot rely on contract terms if they are deemed unfair. You may wish to consider making a civil claim against the trader if you think the charges were unjustified.

Upsidedownandaround

Jumblebumble said:

Upsidedownandaround said:

Robmacca1 said:

Good evening everyone, sorry if this has been covered in some sort of context before. 

We’ve had a flight cancelled to Dalaman with Turkish Airlines that we booked through LastMinute.com, we have now received some comms from LM that we are due a refund (of a sort) the options are;

1) Travel credit extra value offer. £430 as travel credit. 

2) £410.22 as a Voucher

3) Cash refund of £305.22 (admin fee of £105 applied) 

I would obviously prefer the cash refund so we can actually do something as a family this summer, however £105 in admin fees when it is the airline that has cancelled the trip seems ridiculous. It’s like 25% of the outbound flight, we’re still waiting on the return with Jet2 to be cancelled so no doubt this will be a further admin fee  

Has anyone had any luck challenging this? I’m not against paying a reasonable fee if there’s extra work involved in processing a refund, but there wouldn’t have been a fee if we went as planned. What exactly do they think they’ve done to earn 25% of the refund? 

We have not accepted any of the refunds as of yet and any advice would be greatly appreciated.  

If you don't want to pay these fees in future the time to take issue with them and "challenge" them is when you're deciding where to buy your tickets from.

Buy direct from the airline and you may pay more but you won't have to pay these fees.

Buy from agents and you may save a bit on the ticket price but they will charge you for all work they do on your behalf as they are perfectly entitled to do if they have make this clear in the terms and conditions. 

You can't have it both ways unfortunately.

If I were the OP I would be tempted to  believe trading standards view on this matter
There is no value to the OP for any work an agent might have carried out if the flight is cancelled

https://www.tradingstandards.uk/news-policy/news-room/2020/pandemic-cancellations-beware-refund-vouchers-and-admin-fees
Some travel agents have also been deducting significant ‘admin’ fees from refunds, contrary to the law, and this practice should be reported and stopped, according to London Trading Standards. Under EU and UK law, companies must provide a refund in the event that no service is provided to the customer.
( The article makes it crystal clear that if their interpretation of no service is if the flight is cancelled)

Personally I’d believe the law on agency and contract law. If you enter in to a contract with an agent and they state charges for work you do for them you are required to pay them. Up to them if they want to challenge it in a court though.

Butts

Upsidedownandaround said:

Jumblebumble said:

Upsidedownandaround said:

Robmacca1 said:

Good evening everyone, sorry if this has been covered in some sort of context before. 

We’ve had a flight cancelled to Dalaman with Turkish Airlines that we booked through LastMinute.com, we have now received some comms from LM that we are due a refund (of a sort) the options are;

1) Travel credit extra value offer. £430 as travel credit. 

2) £410.22 as a Voucher

3) Cash refund of £305.22 (admin fee of £105 applied) 

I would obviously prefer the cash refund so we can actually do something as a family this summer, however £105 in admin fees when it is the airline that has cancelled the trip seems ridiculous. It’s like 25% of the outbound flight, we’re still waiting on the return with Jet2 to be cancelled so no doubt this will be a further admin fee  

Has anyone had any luck challenging this? I’m not against paying a reasonable fee if there’s extra work involved in processing a refund, but there wouldn’t have been a fee if we went as planned. What exactly do they think they’ve done to earn 25% of the refund? 

We have not accepted any of the refunds as of yet and any advice would be greatly appreciated.  

If you don't want to pay these fees in future the time to take issue with them and "challenge" them is when you're deciding where to buy your tickets from.

Buy direct from the airline and you may pay more but you won't have to pay these fees.

Buy from agents and you may save a bit on the ticket price but they will charge you for all work they do on your behalf as they are perfectly entitled to do if they have make this clear in the terms and conditions. 

You can't have it both ways unfortunately.

If I were the OP I would be tempted to  believe trading standards view on this matter
There is no value to the OP for any work an agent might have carried out if the flight is cancelled

https://www.tradingstandards.uk/news-policy/news-room/2020/pandemic-cancellations-beware-refund-vouchers-and-admin-fees
Some travel agents have also been deducting significant ‘admin’ fees from refunds, contrary to the law, and this practice should be reported and stopped, according to London Trading Standards. Under EU and UK law, companies must provide a refund in the event that no service is provided to the customer.
( The article makes it crystal clear that if their interpretation of no service is if the flight is cancelled)

Personally I’d believe the law on agency and contract law. If you enter in to a contract with an agent and they state charges for work you do for them you are required to pay them. Up to them if they want to challenge it in a court though.

I would just apply the caveat the OP is dealing with LM.com, one of the worst of a very shoddy pile of OTA's.
Their practices including T&C's that bear no relation to the Law are legendary and a fact of life that I have personal experience of.