Money

Holiday firms slammed for ‘bullying’ customers into paying thousands for trips they may never go on due to lockdown


HOLIDAYMAKERS are being “bullied” into handing over thousands for trips unlikely to go ahead due to coronavirus, according to reports.

Travellers are being stung by holiday companies demanding they hand over cash despite Matt Hancock saying yesterday summer holidays are likely to be cancelled this year.

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 Holidaymakers are being 'bullied' into paying out for trips that may be cancelled

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Holidaymakers are being ‘bullied’ into paying out for trips that may be cancelledCredit: Getty Images – Getty
 Health Secretary Matt Hancock has told Brits that trip abroad this summer are unlikely to go ahead

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Health Secretary Matt Hancock has told Brits that trip abroad this summer are unlikely to go ahead

Ministers are also now asking anyone who enters Britain to quarantine for 14 days – but some holidaymakers are still being refused a cash refund – instead being offered vouchers or credit notes, Daily Mail reports.

Some travel firms ask for a deposit upfront and the remaining balance to be paid near departure dates but if customers cancel and don’t pay the balance, they will lose the deposit and also have to fork out for a cancellation fee.

Others can pay the balance and hope to get a refund if the holiday company cancels the trip.

Which? recently said travel firms including TUI, Ryanair and British Airways were breaking the law by not giving customer refunds.

‘WE DON’T KNOW WHAT TO DO’

Avril and Peter Brewer had planned a dream holiday for their son, his wife and their two young children to Orlando in August.

The pensioners paid out £1,075 for a package holiday with Virgin last April with the remaining £13,091 due to be paid on May 20.

The family want to rebook for next year instead – but Avril, 71, has been unable to reach the company and now fears having to lose her deposit and pay a cancellation fee if she chooses not to pay the final amount.

She told the newspaper: “We just don’t know what to do. We do not want to pay the £13,091 balance as we don’t know what will happen to Virgin or our money. But we cannot get through to anyone.

“Virgin is letting its customers down and we are disgusted.”

Your rights to a cash refund

Legally, if your holiday has been cancelled you are entitled to a cash refund.

If the flights are cancelled, the airline has to give you the cash back within seven days.

If you’ve booked a package holiday, you are entitled to a refund within 14 days.

The only grey area is if you booked your accommodation or other holiday elements directly.

Which? is encouraging holidaymakers to take credit notes if it suits their circumstances, particularly as this might help keep the ailing travel industry alive.

But the consumer group warns that your refund could be at risk if you opt for an alternative to cash and the firm enters administration.

You also need to check your provider’s terms and conditions carefully.

British Airways is allowing customers to cancel holidays up until join and get a voucher.

But it has confirmed that this counts as you cancelling not them, so you’ll lose your rights to a cash refund.

While Dianne McLaren and her partner Phil Hudson are also struggling to get hold of Virgin Holidays to postpone their £5,000 trip to the US and Canada in August.

She said: “We are in a dilemma. We do not want to pay the balance because I am worried we stand to lose £5,000.

“But if we do not pay, we lose the deposit plus cancellation fees. And we are not getting any help from Virgin.”

The company’s terms and conditions state the deposit will be lost and customers will have to shell out for a cancellation fee if they axe the trip.

But the Competition and Markets Authority have launched a probe into the cancellation policies.

Martyn James, of online dispute service Resolver, said “It’s clear that some holidaymakers are being bullied into paying in full for holidays that might not even go ahead.

“This is concerning in light of the statement from the Competition and Markets Authority about refunds and cancellations.”

Other ways to claim a refund

Claim on your insurance

You might be covered for trip cancellation by your travel insurance, so it’s worth checking.

Just be aware that if you’re able to submit a claim, you’ll likely pay a fee known as an “excess” to get a refund.

Policies purchased after coronavirus hit the UK are unlikely to cover coronavirus-related cancellations.

Claim from your credit card provider

Credit card payments between £100 and £30,000 are covered under Section 75 of the Consumer Rights Act.

This means where you don’t get the service you paid for, your credit card provider is jointly liable and you can reclaim costs from them.

To start a claim, you need to contact your credit card provider directly – Which?.

Claim from your debit card provider

For flights and hotels booked by debit card you may be able to claim a refund via the Chargeback scheme.

This also applies to credit card bookings of under £100.

As with Section 75, chargeback can be used to reclaim cash for goods and services you didn’t receive.

But unlike Section 75, it’s not a legal requirement so there’s no guarantee you’ll get your money back.

To start a chargeback claim, you need to contact your card provider within 120 days of the transaction.

He says travellers should ask for a delay to the date they have to make their final payment or see if the company will allow them to postpone the trip.

Those with a package holiday should be protected by Package Travel Regulations (PTRs), which again should mean holidaymakers can claim a refund.

Under the PTRs, if any element of the package holiday or cruise package is cancelled or significantly changed, then people have the right to request a full refund of any payments made towards the holiday in cash.

Some Brits may also be covered by the Association of British Travel Agents (ABTA) if the trip was booked via one of its members.

Where no suitable alternative is possible, holidaymakers should be entitled to a refund.

ABTA says this is normally paid within 14 days but warns that currently this timeframe is “simply impossible for many companies to adhere to” at present.

It says many travel firms are waiting for money back from hotels, airlines and other suppliers and don’t have the upfront cash to pay holidaymakers.

Virgin Holidays has said those travelling between June 1 and September 30 may now rebook holidays for free until December 31 – pushing back the balance payment due date.

Those with upcoming balances to settle will be contacted directly.

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 Travellers returning to the UK are being asked to quarantine for 14 days

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Travellers returning to the UK are being asked to quarantine for 14 daysCredit: Getty – Contributor
Summer holidays abroad will be cancelled this year, Matt Hancock reveals





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