A campaign opposed to a change in the law to allow travel firms to issue credit notes instead of cash refunds has warned it could be challenged by judicial review.
It’s Right To Refund, which is being spearheaded by former Travel Republic chief executive and VIVID Travel founder Kane Pirie, has written to transport secretary Grant Shapps.
The move comes as expectations grow of imminent confirmation from government of a relaxing of the refund rules under the Package Travel Regulations which Abta has been lobbying for due to the Covid-19 pandemic.
Abta insists giving firms the ability to defer refunds will buy them time to recapitalise their businesses and refund customers, or provide their holidays, without undermining their customer rights.
However, in the letter to Shapps, It’s Right To Refund sets out what it says are government obligations under existing EU package rules and the risks of judicial review if these are contravened.
The campaign groups says it believes the Abta proposals open a “Pandora’s box” which could see some customers waiting into 2021 before they receive their money back. The PTRs state the holiday organiser must refund within 14 days of the cancellation of a holiday.
Pirie said: “We trust government will recognise that such a delay is unnecessary and unfair and furthermore will exacerbate the financial distress of many members of the public.
“To go ahead with the Abta proposals, which contain no fixed end-date for repayment, would be a kick in the teeth thank you to the British public who have sacrificed a great deal to support the lockdown, whatever the financial cost.
“That kick in the teeth is even more abhorrent when you recognise that many NHS workers will also be told ‘your holiday organiser needs your money more than you do so you will have to wait. And, by the way, thanks for saving all our lives’.
“There is an obvious and obviously better alternative: a short grace period exactly as the government quickly and without problems introduced for car MOTs.
The Letter states: “We beg you to change course and warn that aside from the legal rights, which we reserve in full, you should not underestimate the great British public. This ‘Great Refund Robbery’ is a turkey that will not fly.”
It’s Right to Refund was launched earlier this month and has more than 12,500 followers. An Abta campaign #SaveFutureTravel appealing for travel firms and industry supported to urge the government to what whatever it takes to save companies from failing hit 24,000 supported on April 16.