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UK Airlines Not Issuing Refunds On Time Are Breaking The Law

UK Airlines Not Issuing Refunds On Time Are Breaking The Law

Consumer watchdog Which? has conducted a study

Amelia Ward

Amelia Ward

Airlines that have refused to offer refunds for flights cancelled due to the coronavirus pandemic could be breaking the law, an investigation by Which? has found.

Researchers found that many of the major airlines and holiday providers have outright refused to offer refunds, instead giving out credit notes to customers who have had their travel plans cancelled, despite customers specifically saying they want a refund.

The study approached 10 of the UK's biggest package holiday providers and 10 of the largest airlines to ask directly about their policies towards refunds.

Which? reported that not one of the companies approached was consistently meeting legal requirements, which require them to refund customers within a statutory timeframe.

The consumer agency found that a number of airlines and holiday providers were only giving credit notes or vouchers, which would then be worthless if the company collapsed.

Others are refusing to give any sort of time frame for how long refunds will take to be processed.

In addition to this, coronavirus restrictions have meant that many customer services departments are closed or working with a skeleton staff, meaning that customers can't easily get through to them to query.

What actually are your legal rights?

If the holiday provider you are with cancels your holiday, you will be entitled to a refund - this must be processed by the company within 14 days.

As reported by Which?, your money is secured by the ATOL (Air Travel Organiser's Licence) scheme, which is operated by the UK Civil Aviation Authority - meaning while you hold a booking, even after the date of travel has passed, you can get your money back if the company goes out of business.

However, this is generally not the case with a voucher, meaning you would lose out completely. Which? has therefore advised customers not to accept one.

Ryanair are one of the airlines approached by Which?
PA

If your flight is from a UK or EU airport, and is cancelled, you MUST be offered the choice of being rerouted or refunded. This refund must be processed in seven days, regardless of the reason it was cancelled.

The travel industry itself has estimated that the public are collectively owed up to £7 billion in total for cancelled trips, but industry experts such as Abta said that firms would be bankrupted if they paid now as they no longer have revenue.

But Which? has urged the government to step in and help both travel firms and the public. So whether it's a stag do, wedding or just a city break that you've lost money on, read the full report on what to do next here.

Featured Image Credit: PA

Topics: Coronavirus, travel