Deposit credit note - allowed?

muddyl

Hi all,
Looking for help/advice on a cancelled holiday please. 

We booked our first holiday in over 10 years, only for it to be cancelled. Not surprisingly in these current conditions.
They offered a refund or rebook, but their prices had gone up around £400 per person, so we opted for a refund and booked with another provider. 
They state they'll give a refund in 10 working days, which is fine, but that they will only issue a credit note for the deposit which I beleive is valid for 12 months. This was £60 each for 7 people, so £420.
Issue is, it'll likely be years before we book another holiday so will probably lose this.

Are they allowed to do this? I thought they needed to issue a full refund if they cancelled?

Thanks in advance. 

eskbanker

Refund obligations may vary depending on the type of booking (package, accommodation-only, flight-only?) and the jurisdiction under which the booking was made (UK company or foreign entity or individual not covered by UK consumer rights legislation?), so if you put some meat on the bones of the story, it should be possible to advise....