The It’s Right to Refund campaign has reiterated its willingness to take legal action against the government if it changes refund rules and rubber-stamps delays in repayment of up to 12 months.
But it has extended the time by which it believes refunds should be paid to consumers to September 17, from July 31, which it says is in line with the shortest grace period granted in other European countries.
More: Competition watchdog ‘concerned’ over holiday refunds
Government refund credit guidance delayed again
Abta defends refunds guidance after calls to reconsider expiry dates
Kane Pirie, managing director of VIVID Travel, said he would begin action if the government announced “any plans that would result in consumers waiting for a refund on their coronavirus cancelled holiday for 12 months”.
Abta has been lobbying the government to relax the 14-day refund period to give travel firms hit by the coronavirus pandemic and resulting travel restrictions time to return the cash.
However, it issued a rebuttal of claims that expiry dates on refund credit notes based on companies’ bonding periods meant that refunds due now could be withheld until as late as next March.
More:Delta warns recovery could ‘take years’
Advice: Abta’s Refund Credit Notes explained
Pirie had been calling for all refunds to be paid by July 31, 2020, the original expiry date suggested by Abta. But he is now calling for a “measured and balanced compromise” of six months, in line with the shortest equivalent in Europe – meaning customers would all be refunded by September 17.
He said: “Despite private and public lobbying to persuade Abta to a more moderate position, we must now recognise that we have failed to move them. We have therefore been preparing the groundwork to protect customers’ Right To Refund through the courts if necessary. We cannot and will not accept 12 months.”
Pirie, who has written to transport secretary Grant Shapps, said the Its Right to Refund campaign now has almost 20,000 supporters. He has taken legal advice from law firm Kingsley Napley, which has reviewed the responses of other European countries to the Covid-19 crisis.
“Across the different markets, the windows vary from six, 12 or 18 months within which time companies need not issue refunds,” Pirie said. “We have of course chosen the shortest possible date for consumers, which is six months [from the government’s first advice against all but essential overseas travel on March 17], and have written to the government today detailing our position.”
Pirie explained that the campaign would be advocating a six-month Extraordinary Circumstances window to run from March 17 to September 17, 2020, but that it should only apply to customers who are not in financial distress themselves. The campaign will call for the existing 14-day stipulation within the Package Travel Regulations to be “vigorously enforced” for customers “in urgent need of their own money back”, he added.
“Not everyone is rich,” he said. “Most people push the boat out for their holiday and for those now struggling financially due to lockdown every day of waiting counts.”
Pirie described the six-month window as a “generous loan” from customers to travel companies that have not yet refunded customers, which he urged to seek other financing options.
“We are hopeful the government will support this measured and balanced compromise, which we believe works well for both consumers and travel companies,” he said.
