The Civil Aviation Authority (CAA) has issued a final reminder to consumers to cash in or book a holiday with any outstanding refund credit notes as these lose Atol financial protection at the end of September.
The CAA revealed £30-million worth of Atol-protected refund credit notes (RCNs) remain unused.
The notes may still be used to make a booking beyond the end of the month providing the redemption expiry date is not linked to the Atol-protection expiry on September 30.
But if the travel company which issued the RCN subsequently failed, the credit note would be rendered worthless.
The CAA said it has written to some of the UK’s biggest travel companies “to remind them of their obligations to customers still holding unspent refund credit notes”.
It urged consumers still holding RCNs “to make sure they act before the end of September and either redeem the refund credit note against another Atol-protected booking or ask for a refund”.
The CAA noted that redemption-expiry dates for RCNs “will vary depending on the individual travel company” but warned consumers that after September 30 “any refund credit note issued in 2020 or 2021 will no longer benefit from Atol protection.
“Even if a refund credit note is still valid after September 30, if a consumer redeems the value of their credit note on or after October 1 for a new trip and the company stops trading after this date, none of the value of the refund credit note used to pay for the trip will be refunded by the Atol scheme.”
CAA head of Atol Michael Budge said: “The deadline for the end of Atol protection of refund credit notes is 30 September, so we are again urging people to either use their refund credit note to book another Atol protected trip or ask their travel company for a refund.
“This will affect customers of some of our biggest travel firms, so our message is simple – this is the last chance to make sure you continue to be financially protected by the Atol scheme.
“Even if your refund credit note is valid after the end of September, it won’t enjoy Atol protection. We are urging people still holding one of these refund credit notes to take action now.”
The CAA noted the £30 million total in unspent RCNs was based on Atol submissions up to the end of August.
The figure has declined from £85 million in unspent RCNs at the end of March, suggesting £55 million worth of bookings have been made with the credit notes this summer.
Refund credit notes for Atol-protected trips cancelled due to the Covid-19 pandemic were issued from as early as March 10, 2020, with the encouragement of Abta.
However, the CAA and Department for Transport only confirmed Atol protection of the RCNs in July 2020. They continued to be issued until December 19 2021, with a final, Atol-protection expiry date of September 30, 2022.