Travel firms are resorting to aggressive tactics to avoid issuing refunds for cancelled holidays, with some adding retrospective exemption clauses and threatening customers who insist on their legal rights. Consumer law requires companies to refund customers if they cannot provide the booked services, but many are instead offering credit notes to stay afloat.
Steph Nixon, a furloughed worker, booked a package tour of Morocco through TourRadar, which was cancelled due to coronavirus restrictions. When she requested a refund, she was told it was a 'suspension', not a cancellation, and that she must accept a credit note. After issuing a chargeback claim via Amex, a TourRadar operative left a voicemail threatening to deem her in breach of contract if she did not drop the case, leaving her with no refund or credit note.
Amex told the Observer that dispute windows had been extended to 60 days, but TourRadar continued to email Nixon daily, insisting she withdraw the dispute within 24 hours or lose the credit offer. Nixon said she believed the firm was creating a false deadline to pressure her.
The Observer has identified half a dozen agents that have added exemption clauses, renamed cancellations as 'postponements', or threatened customers seeking refunds. The Package Travel Regulations require refunds within 14 days for cancelled trips. Nixon eventually received a refund after contacting the tour operator Intrepid Travel a second time.
The Financial Ombudsman Service stated it was unaware of firms pressuring customers to drop claims, adding that businesses should investigate complaints thoroughly and treat consumers fairly. Amex said it considers the terms and conditions in place at the time of the transaction when a dispute is raised.
