Airlines, holiday providers and venues are amongst those who are failing to provide refunds for services cancelled by Covid-19
A charity has called for action on airlines failing to provide refunds for cancelled flights.
Citizens Advice Scotland has today called for action to help consumers who have been unable to get refunds for cancelled flights, holidays and events during the Covid-19 crisis.
The charity has today (Tuesday 19 May) revealed figures from its public advice website which show the numbers of visits to the pages about refunds for flights and holiday cancellations has spiked by 346% compared to the same period last year. The number of visits to the new page ‘refunds due to coronavirus’ since 23 March is 2,196.
Cases brought to the Scottish CAB network include a young couple who are waiting for around £15,000 in refunds after their wedding was cancelled, and another couple who spent over £2,000 on holiday flights. In both cases the companies involved have either refused to refund the money paid or are stalling unnecessarily.
CAS spokesperson for fair markets, Kate Morrison, said: “The increase in the numbers of people viewing these pages is astonishing and shows there is a real wave of cases where people feel they have been let down by holiday companies, airlines and other traders.
“In addition to these statistics, we have anecdotal evidence of cases where people have spent tens of thousands of pounds for services which have not been delivered. Yet when they contact the company to try to get a refund, the company either refuses or offers vouchers instead of money. This is not acceptable. Some of the cases we’re hearing about are really distressing. People feel like they’ve been ripped off.
“As Scotland’s biggest provider of consumer advice, we want to give a voice to all those who have been let down in this way. It’s upsetting enough to have a holiday or wedding cancelled, without then finding that you’re not getting your money back.”
Trip of a lifetime in tatters
Emily Liddle and George Ridley have lived and worked in Edinburgh for years. Last year they decided to re-locate to London, but before that they wanted to have a once-in-a-lifetime holiday. In September 2019 they booked their flights, aiming to travel first to London, then fly from Heathrow to Japan on March 19, followed by a complicated itinerary of travel through Asia before flying home from Singapore in June.
Emily said: “We booked with Lufthansa, thinking they were a reputable airline so we’d have no problems. Then on March 12, about a week before we were due to fly, they cancelled our flights. They actually didn’t tell us they cancelled (no call, email or text, nothing). It was only because I was worried about the Covid-19 situation that I checked our account to find it had been cancelled.
“For the next two days we spent ages trying to call the company, waiting for hours at a time to speak to an agent. At that point, Covid-19 wasn’t yet a pandemic and there weren’t the global travel restrictions that were later applied. We got through eventually, to find they had decided to cancel our flight for ‘economic reasons.’ The flight the next day was still operating, so we had the option of booking onto that - but this would’ve meant our whole itinerary was ruined, plus we’d have to re-arrange all our travel and accommodation to London, as we were staying the night beforehand to catch our flight from Heathrow.
“The agent recommend that we could get a full refund on the flight and that would allow us to re-book with their sister airline KLM. We decided this was the best thing to do, as the KLM flight was on the same day (March 19) and at the same price. So, we re-booked with KLM and accepted the flight refund from Lufthansa; they told us we’d have the money back in seven days.
Then on the Monday (March 16) the UK travel advice changed, banning travel out of UK, which meant we were unable to get on our KLM flight.
“Subsequently, KLM cancelled our flight, so even if we had been crazy and decided to travel against the government advice, we wouldn’t be able to. Lufthansa supposedly ‘refunded’ our first flight that day (March 16) but we still haven’t seen a penny. In fact, they notified us on that they have changed their policy to give us flight vouchers only, rather than cash. We are trying to dispute this. We have been through the same process with KLM, where they are refusing to refund our flights at all, even though it was they and not us who cancelled our flight. They keep re-iterating that it’s “not their current policy” to refund in cash, so they too are offering to provide flight vouchers only. This has been over a series of calls and emails that has been very stressful and frustrating. I hate to add that I have also had some extremely poor customer service. I had read out my consumer rights under EU Law to be told there is nothing that can be done.
“Those two flights cost just shy of £2,000. On top of this, we had booked internal flights in Asia which have all been cancelled and we are unable to get refunds for those, so we about £2,200 out of pocket for services we have never received. Added to this the cost of phone calls to the various companies and the amount of time and stress it has taken up.
“I feel really angry and frustrated. I know the pandemic itself is nobody’s fault and many people are suffering in lots of different ways. This isn’t about us losing our holiday – that can’t be helped. It’s about the appalling way we are being treated. The bottom line is that we’ve paid for services that we have not received, so surely we are entitled to our money back.”
Morrison said she understood firms are under financial pressure, but said the basic principal of providing a refund if a service cannot be provided must be adhered to.
She said: “Covid-19 is not the fault of the airlines or holiday companies or event planners, but nor is it the fault of their customers. The bottom line is that if you pay for something and don’t get it, you should get your money back. Not in vouchers but in the money you paid. Refusal to comply with this simple principle, using Covid-19 as an excuse, is a disgrace.
“CAS will continue to stand with all the consumers in Scotland who are seeking the refund they are due. We note that the Competition and Markets Authority (CMA) has already stated that consumer law is on the side of customers in this situation, and we call on them and other regulators to come down hard on any company which refuses to refund its customers. If these companies won’t do it voluntarily then we believe penalties are appropriate.”