Government Promises To Protect ‘Refund Credit Notes’19/07/2020
For travellers received refund credit notes (RCN) rather than cash for cancelled holiday, government reassures that their money is safe.
Government now clarifiesy that these refund promises are secure even if a travel company which provided them goes bust.
Customers will get refund as it is come under the travel industry’s ATOL scheme, which is managed by the Civil Aviation Authority (CAA).
However, RCN are completely different from holiday vouchers. Holiday vouchers do not have the same protection.
This will not affect anyone whose package holiday is cancelled has the right to a full cash refund.
But, RCNs can be used to book another holiday or a refund is given when the note expires.
For holidaymakers, whose package holiday is cancelled by the provider. Legally entitled to a refund of the whole holiday by law within 14 days.
Now both the Department for Transport and the Civil Aviation Authority (CAA) have now confirmed that RCNs are protected under the ATOL scheme. After RCNs were accepted by some customers.
Even, a holiday provider goes bust RCNs will still remain valid and customers will get their money back.
Transport Secretary Grant Shapps told BBC, “This is not only good news for anyone looking to get away for a break in the sun, but also for the aviation and travel sector which has been hit hard by the pandemic,”
He further added, “It’s providing more flexibility, with the government standing behind the consumer and also the travel companies.”
A spokesman for ABTA told, “The move will particularly help tour operators that have not been able to immediately refund customers for cancelled package holidays because they have had to wait for money back from airlines and other suppliers,”
Consumers rights website Which will provide more useful information about the positive and negative of accepting RCNs.
Once a holiday provider goes burst. You can use either Section 75 or Chargeback protection to get your money back.