Many have been left out of pocket pending reimbursements as vacations are canceled during the pandemic in the 19th year.
Some companies offer credit note refunds where customers can then choose to book again for another time of the year or exchange it for a cash refund.
Many families have accepted them – some companies claiming that credit scores are protected by ATOL, allowing customers to claim money in the event of a business bankruptcy, reports The Mirror.
But the money saver has posted new advice on his newsletter – and that is not good news.
He said that for people affected by canceled flights who accepted a voucher rather than cash, it would be “unlikely that you will be able to claim on a debit / credit card if the company goes bankrupt.”
He said, “I’ve been looking for confirmation on this for a while, and now I have an answer, but it’s not great.
“If you’ve had a canceled flight, the law entitles you to a refund within a week, and the Competition and Markets Authority says other sectors should generally give cancellation refunds as well.
“Yet many people accept the vouchers – rightly because they want to help the business, or wrongly because the companies flout the rules, refused refunds, or made them difficult to obtain.
“In the travel industry, some companies issue” repayable credit notes “which they say are protected by ATOL – although this has not been tested. But most coupons are just a call to society, so if it breaks down, you become a creditor and it is unlikely that you will get any money back. “
When this happens, in any other circumstance, Martin advises using chargeback or section 75 to try to get a refund from your debit or credit card provider and asked the financial ombudsman if this could operate here.
They replied, “If a voucher is offered in the full and final settlement of a claim, it could mean that you will no longer be able to make a section 75 claim or charge back. “
Martin therefore advises you to check the terms and conditions of your voucher or credit note to see if you can request a cash refund at a later date.