Persistent refusal to give a refund for a deposit paid in Sept 2019

anandp

We booked a holiday to Zanzibar (via Dubai) in September 2019, to be taken in August 2020.  It was a package deal, with flights and hotels booked through a tour operator.

Throughout the past year and a half, we have continuously asked for a refund and been declined, with them stating their T&C's don't permit refunds.  They have provided voucher and voucher, extending the validity but tying us into them.  

We never paid the balance in June 2020 due to ongoing restrictions and then were given one final option - either

1. we release the flights/holiday and rebook at another time
2. or pay the balance and risk it.  If the flights go ahead, then we must go, and if not, then they would refund

We opted for a refund but were promptly refused this, and reluctantly chose option 1 on balance.  Given there has been zero opportunity up until recently to reinitiate the booking, and prices have moved on significantly as well, we feel it is grossly unfair to not be refunded the balance.

I've complained to the CMA but this has largely been noted, with no follow-ups planned by them. 
I have an Amex chargeback option but am not sure the T&C's support a claim.
Travel insurance probably wouldn't work either given the flight actually did later depart.

I am almost certain that the operator has not incurred flight or hotel cancellation costs, but cannot of course prove this.

Does anyone have any advice on how a refund can be achieved?

eskbanker

anandp said:

We never paid the balance in June 2020 due to ongoing restrictions and then were given one final option - either

1. we release the flights/holiday and rebook at another time
2. or pay the balance and risk it.  If the flights go ahead, then we must go, and if not, then they would refund

We opted for a refund but were promptly refused this, and reluctantly chose option 1 on balance.  Given there has been zero opportunity up until recently to reinitiate the booking, and prices have moved on significantly as well, we feel it is grossly unfair to not be refunded the balance.

Unfortunately it sounds like you probably broke the contract by failing to make scheduled payments, which is likely to have been regarded as you cancelling, although option 1 effectively seems to be the company making a concession by allowing you to carry forward the deposit (plus any subsequent payments) to another booking?  What do your booking terms say about not making payments, and the cancellation policy?

It's not obvious from your post why you believe you're actually entitled to a refund, especially if you started asking for one four months before scheduled departure date - chances are that if you'd kept up with payments then the holiday wouldn't have gone ahead, even if the flights were still operating (the Package Travel Regulations would have offered protection by virtue of its 'unavoidable and exceptional circumstances' provisions), and you'd have been entitled to your money back.

anandp said:

I am almost certain that the operator has not incurred flight or hotel cancellation costs, but cannot of course prove this.

Package providers are obliged to levy reasonable cancellation charges that genuinely reflect what customer cancellations actually cost them, but inevitably they impose a relatively standardised time-based tariff - you could try challenging them on their cancellation charges if you feel you can build a case that would stand up in court?

anandp

eskbanker said:

Unfortunately it sounds like you probably broke the contract by failing to make scheduled payments, which is likely to have been regarded as you cancelling, although option 1 effectively seems to be the company making a concession by allowing you to carry forward the deposit (plus any subsequent payments) to another booking?  What do your booking terms say about not making payments, and the cancellation policy?

No not at all.  There was simply the deposit payment, and then the balance - no further scheduled payments.  When the balance became due, they gave us the two options I mentioned.

eskbanker

anandp said:

eskbanker said:

Unfortunately it sounds like you probably broke the contract by failing to make scheduled payments, which is likely to have been regarded as you cancelling, although option 1 effectively seems to be the company making a concession by allowing you to carry forward the deposit (plus any subsequent payments) to another booking?  What do your booking terms say about not making payments, and the cancellation policy?

No not at all.  There was simply the deposit payment, and then the balance - no further scheduled payments.  When the balance became due, they gave us the two options I mentioned.

OK, thanks for clarifying, but your chosen option was effectively to supersede your original booking by accepting a voucher and unless there are any refund-related terms associated with that, the provider won't have any obligation to buy it back for cash, which is essentially what you're asking them to do? 

I can understand why you'd like that deposit back in cash, but can't see the legal/contractual grounds on which to try to make a case that they're obliged to comply, so if they're refusing then I can't see a basis on which to challenge that (unless you can make a case that their terms are unlawful)?

Upsidedownandaround

Unfortunately I agree with eskbanker that you have no entitlement to a refund. You effectively cancelled your holiday in return for a voucher which they have provided to you.

The best thing thing to do now may be to remain amicable with them so they continue the extension of the voucher to a time you can use it.

Westin

Upsidedownandaround said:

Unfortunately I agree with eskbanker that you have no entitlement to a refund. You effectively cancelled your holiday in return for a voucher which they have provided to you.

The best thing thing to do now may be to remain amicable with them so they continue the extension of the voucher to a time you can use it.

+1 +1
also agree. Perhaps not the answer you hoped for, sorry.